GRAINCORP has weighed into the wheat quality debate, saying that an overarching body promoting Australian wheat is unnecessary and would represent an additional cost to growers.
Recently, AWB spoke out on the issue of declining wheat standards and both the Victorian and Western Australian Farmers’ Federations have come out backing an "industry good" body to promote Australian wheat.
However, GrainCorp corporate affairs manager David Ginns said while pre-commercial work such as wheat classification was crucial, promotion of wheat could be done by the various marketers.
“What we have to understand was that under the single desk, AWB was promoting themselves, not Australian wheat.
“We think that a commercial desire to sell wheat by individual companies will serve as a good promotion for Australian wheat.
“For example, we sent over three people to the international millers’ conference in Turkey last year as a commercial exercise, to promote GrainCorp, and by extension Australian wheat.”
Mr Ginns said he believed those pushing for a promotional organisation were looking for a way to socialise marketing costs.
“Generally I think those who want a non-commercial industry good body are people who want a free ride.
“There needs to be a line drawn somewhere, growers are being stung for all these costs.”
He said the issue of wheat quality was different than it used to be under the single desk.
“You can’t replicate what worked with the AWB system, that system specifically suited the monopoly, but now it doesn’t make sense to over-regulate the industry.
"We continue to be perplexed by the push from AWB and the state farmer organisations for more regulation of an industry that is over regulated.
"Reducing regulation will make the industry more efficient and more profitable for all participants, particularly growers who ultimately pay for the cost of regulation and inefficiency from their profit margins."
He said that the issue of wheat quality decline was due to individual cases.
“There is a mistaken impression that under the single desk ‘quality’ was higher than it is now, and that’s not so.
“Some buyers were the beneficiaries of AWB delivering wheat that was over specifications, and now are having to adjust their processes or specification higher standards, and pay full value for wheat, which is to the direct benefit of growers.”
In terms of pre-commercial work, he said Grain Trade Australia had a big role to play.
“GTA can handle all the non commercial stuff, things like wheat varietal classification, which needs to be independent of traders and breeders.
“GTA sets the receival standards and varietal classification would be a natural spin-off for it."
He said GTA had members right through the supply chain and would be ideally suited to the role.