This recent frustration is a result of the Minister’s reply to a Question on Notice Mrs Hull asked in October.
“Last week the Minister finally replied to my question, with a response I know will be extremely disappointing and insulting to many Riverina wheat growers.
MRS HULL: asked the Minister for Agriculture, Fisheries and Forestry, in writing:
In respect of the likelihood of a departure of farming families from the Riverina, NSW, following prolonged unsustainable conditions, worsened by the deregulation of the export wheat industry: what analysis was undertaken by his office or department before the deregulation to identify the effect that the major transfer of price risk to farm balance sheets would have on the bottom line given many farmers lack both the resources to defend this risk transfer and the capacity for wholesale negotiating.
Mr Burke: answer is as follows:
There is no evidence that the deregulation of the Australian wheat industry has threatened the viability of Australian wheat growers. In fact, partial deregulation has opened up opportunities for growers who are now able to determine the nature and timing of marketing arrangements best suited to their requirements.
Under the new wheat marketing arrangements there are now 27 companies accredited to export bulk shipments of wheat, increasing the competition amongst buyers for the purchase of wheat from the Australian farmers. In the first year of operation, 17 accredited entities exported more than 12 million tonnes of bulk wheat to 42 countries. Australian wheat is now being exported to more than double the number of countries that AWB exported to (17 countries) in its final year.
Farm gate prices for Australian wheat are largely determined by international; commodity markets. This was also the case under the previous single desk arrangements applying to bulk wheat exports. Growers have the same opportunities to spread risk by a combination of on-farm storage, partial sale for cash and partial sale to the pools. Partial deregulation of the wheat export market has resulted in the development of a greater range of risk management products tailored to the needs of individual farmers.
Risk management was the focus of the 15 grower information sessions held across NSW in 2008 to coincide with the introduction of the new wheat marketing arrangements. These were organised by the Australian Government with NSW Farmers Association. Information was provided on pool sales, cash contracts, hedging, basis, currency, futures, options, swaps and combinations of these tools. Feedback on the value of these sessions from participants was very positive.
“Just this week the Productivity Commission held a public forum in Dubbo, where farmers voiced their real concerns and crippling experience with the new deregulated market,” Mrs. Hull said.
“This is absolute rubbish from the Minister, and I am utterly disappointed for the gutted farmers who have been so badly impacted upon by a Government so far out of touch,” Mrs. Hull said.
(End)
For further information please contact Lucy Spora on 02 6921 4600.