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WEA’s Statement to Senate The WEA currently has two responsibilities: –Monitoring AWB(I)’s export performance and reporting on benefits to growers, and.

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Presentation on theme: "WEA’s Statement to Senate The WEA currently has two responsibilities: –Monitoring AWB(I)’s export performance and reporting on benefits to growers, and."— Presentation transcript:

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2 WEA’s Statement to Senate The WEA currently has two responsibilities: –Monitoring AWB(I)’s export performance and reporting on benefits to growers, and –Controlling non-AWB(I) exports (less than 5%). WEA does not monitor commercial conduct of AWBL. WEA supports Cole’s recommendation of a review of powers, functions and responsibilities.

3 Comments on Growers Report Generally favourable media, for example ProFarmer said: “The latest Growers Report positions the WEA as an authoritative, independent and very valuable industry resource (ie. what it should have been in the first place) that should be utilised as a circuit-breaker in the current debate.” Few unfavourable comments, for example: “There was more examples of political manipulation in the anti-AWB views expressed by the Government appointed Wheat Export Authority in the 2006 Grower Report.” (J. Munro, Stock & Land )

4 Comments on Growers Report 443 reply cards to date: Majority found it useful to growers … –Well done- keep the information flowing –Easy to read format –Very thorough, Thank you! –More information on how the fee to AWB Ltd. was reduced from $65.1m to $39.5m –The report to growers has been long overdue. Keep the information flowing to Wheat growers... "Well Done!"

5 Key Findings Supply chain costs increased by 3% and are higher in QLD and NSW. AWB(I) obtained a premium of between $0.80 (AH) and $6.16 (feed) per tonne (net). AWB(I) outperformed WIB by $18.50 (gross). AWB Ltd’s foreign exchange performance protected National Pool.

6 Key Findings No evidence of ‘dumping’ lower grade wheat into Pool. Non-AWB(I) exporters gained better prices for container and bag exports (further analysis provided in the Addendum). Shipping delays to India cost AUD 9,576,901. AWB Ltd’s market power unable to influence country storage and handling costs (addressed further in the Addendum). All sales contracts analysed were reconciled.

7 Key Findings Remuneration provided AWB Ltd an increase share of National Pool equity.

8 Services Agreement Agreement for the provision of services to AWB(I) by AWB Ltd. Current agreement is still in place. Termination provision exists. Dispute resolution. New Service Agreement currently on hold.

9 WEA non-AWB(I) export consent statistics Jan 04 to Dec 05 Source: WEA Data

10 Information provided to AWB(I) Country of destination Tonnage Grade(s) of wheat Shipping period Shipping method Additional information (only given to AWB(I) if the applicant agrees in writing)

11 Total exports in bags and containers Source: WEA and ACS Data.

12 Non-AWB(I) top 10 countries container and bag exports Source: ACS Data 1September 05 to 30 December 06.

13 AWB(I) top 10 countries container and bag exports Source: ACS data 1 October 2005 to 30 September 2006

14 AWB(I) top 10 countries for bulk exports Source: WEA & ACS Data from 1 October 2005 to 30 September 2006

15 Addendum to the Growers Report 2006 On website by end of March 2007: Management of Pool Interaction – pools and drought Tigris debt issue Monitoring AWB(I) – remuneration, OPI Infrastructure – storage and handling, rail Non-AWB(I) analysis

16 THE END Thank you


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