GrainGrowers has called on the Australian Government to respond to a research paper highlighting large pricing anomalies observed during the 2021/22 grain marketing season. The paper, presented in late 2022, estimates a value loss to grain growers that could amount to billions of dollars in wheat alone.
GrainGrowers CEO Shona Gawel said the industry needed the decision to progress the issue. “Growers have been raising the issue for some time, and the report provides quantitative evidence supporting the need for government to perform an in-depth investigation.”
“Given the issue’s importance, we believe it is appropriate for the Government to decide and commence what it considers to be the most appropriate course of action to address the identified concerns.”
GrainGrowers has outlined a range of options for the Government to consider, including a Senate Inquiry, an Australian Competition and Consumer Commission pricing inquiry, an independent review, or a departmental review by the Department of Agriculture, Fisheries and Forestry.
Ms Gawel said whichever approach is adopted, it is critical that it can gather the necessary information and is meaningful for all industry participants and Government.
“Our research highlighted enormous anomalies accepted by grain and oilseed growers in the winter cropping cycle for 2021-22.”
“At face value, in wheat alone, the value loss to grain growers could be billions. The enormity of this loss is not sustainable over the longer term should the issue re-surface, as it seriously impacts overall farm viability.”
Ms Gawel said that unless the drivers behind these anomalies are better understood and addressed, they will continue adversely impacting growers and the wider industry.
“To get to the heart of the matter, we believe any investigation should include the end-to-end grains supply chain nationally, originating at farm gate through to export and domestic channels.”
“The investigation is not a finger-pointing exercise at any individual market participants, but rather a much-needed review in the interest of all players in the value chain.”
“A thorough investigation will reveal if there are any supply chain bottlenecks and other barriers for trade participants. This approach, in turn, will help inform the Government on future nation building supply chain investment, increasing the capacity of industry to export larger grain crops in future,” Ms Gawel said.
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Media Contact
Chris Rowley
Email: chris.rowley@graingrowers.com.au