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 Growers urged to shrug off AWB apathy 

Growers urged to shrug off AWB apathy

29/08/2008 1:04:00 PM
The repercussions of last week’s AWB meeting in Melbourne have sparked grower interest in a series of AgForce Grains meetings around Queensland and in South Australia.

At issue is the failed move to change AWB Ltd’s constitution as a result of a vote that saw 74.7 percent of shareholders vote to reform the troubled wheat marketer, thereby falling 0.3pc short of a required 75pc majority target.

As a result, they extended the voting by two weeks and adjourned the meeting to reconvene in Melbourne on September 3.

AgForce Grains policy director Lindsay Krieg says AgForce Grains current series of Queensland meeting aren't focusing on the AWB saga, preferring to concentrate on how the new deregulated wheat marketing system will impact on growers, but there’s no doubt the company’s bid to do away with its dual class share system remains a top-of-mind issue.

“There’s a lot of complacency out there,” Mr Krieg cautioned.

While 90pc of Queensland growers look to be in favour of the reform process, the reality is that only 25pc voted – an outcome broadly mirrored in other states.

Meanwhile, AgForce says it supports moves to change AWB Ltd’s constitution because, for instance, of the difficulty in raising capital to buy wheat in today’s volatile world market trading conditions.

“If there’s anything a little bit strange about your company, then those big hedge funds, or superannuation funds aren’t going to come near you,” Mr Krieg said.

“Having those A class grower shares limits AWB’s ability to raise capital and make it a stronger organisation,” he added.

AWB’s B-class shares are owned via listing on the ASX.

With only a reported 50 votes in favour of the AWB’s constitutional reforms needed across Australia, there will be a huge focus early next month on the ballot’s outcome.

The reform proposal has split the AWB board, with four grower directors coming out publicly against the plan.

Meanwhile, the South Australian Farmers Federation (SAFF) Grains Council is also lobbying all SA grain growers who have not yet done so to vote now.

Acting chair for the SAFF Grains Council Jamie Smith said: “The past is gone.

"We need to secure the future for the wheat growers of Australia by ensuring there are a number of strong, commercially focused companies competing for our wheat growers business.”

AFF Grains Council believes that it is vitally important for wheat growers that AWB be one of those companies.

AWB has occupied a unique position in the industry that has allowed it to develop skills and systems in wheat marketing over a long period, with knowledge of the market and developed relationships with growers and customers.

These advantages will be part of AWB’s competitive strength and should contribute to the pressure on all companies to perform.

“However, this will not be achieved is AWB continues to be tied to a constitution that was written for an era dominated by grower control of cooperative equity and legislation supporting the single desk,” Mr Smith said.

“We must secure AWB and our future by embracing constitutional change.

We will be contacting SAFF members and many other grain growers who are A-class shareholders in AWB and urging them to have their say. This decision is too important to lose the vote by less than one per cent and with only a quarter of A-class shareholders voting,” Mr Smith said.

* Voting papers can be faxed to 1800 800 053, or growers can vote online at www.awb.com.au. Any questions regarding voting should be directed to 1800 810 032.

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Q: Do you support AWB's decision to extend the voting period for its push to restructure the shareholding system?

Yes
(48%)

No
(41%)

Undecided
(11%)

Total Votes: 273
Poll Date: 24/08/2008

21/11/2008 | AWI's new board can only succeed in old battles by fighting in new ways.
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