NSW Farmers is exploring the possibility of setting up an east coast grain marketing co-operative similar to Western Australia’s CBH (Co-operative Bulk Handling).
The move is partly a response to what chairman of NSW Farmers grains committee, Mark Hoskinson, said were “bargain basement” cash prices on offer for Australian Standard White (ASW), Australian Premium White (APW) and feed wheat this harvest.
It also reflects dissatisfaction among some growers with how the marketing world has changed since the demise of AWB’s single desk bulk wheat export powers in 2008.
Traders at many storage sites in the south particularly are offering $130 or less a tonne for APW, ASW and feed wheat, though prices for high protein grades such as APH1 (Prime Hard) are relatively buoyant because of concerns about the impact on protein levels from the soft finish to the season.
“After 10 years of drought and a wet harvest last year this is getting very hard to take,” Mr Hoskinson said.
He said a preliminary check of world prices suggested the money offered was about $30 a tonne below what farmers should be getting.
“Traders are factoring in all the risk to be taken by farmers – they are not taking any risk themselves.”
He said also because of the state of the world credit system, buyers could not get the funding to carry a lot of grain and were buying “hand to mouth”.
Mr Hoskinson said the situation was a “catch 22” for farmers.
“They can’t afford to take the prices on offer, yet some are being forced to take it because they need the cash flow.”
Mr Hoskinson said Canada and some other countries were accusing Australia of dragging world prices down.
NSW Farmers had started an investigation to establish what prices growers should be receiving, and although there was no formal proposal yet, was looking at setting up a grower co-operative like the CBH model.
He said the situation called for united action by farmers.
“If we want to continue growing crops we can’t be dictated to by the trade.”
He said CBH truly represented growers and drove profit back to them.
Pools such as those offered by AWB and GrainCorp offer better long term value, with AWB in its latest pool update on November 16 quoting $272/t for APW1 and $259/t for ASW1, for example.
A spokesman for AWB said that for ASW the pool price, after subtracting freight, storage and handling costs represented about a $35/t premium over cash prices.
He said pools covered all of eastern Australia and took a longer term view of the market and of movements in the Australian dollar than cash prices.
However, Rankin Springs grower and NSW Farmers grains committee member Jock Munro said he was concerned that if too much wheat was delivered to pools AWB would close them and open new pools at lower prices.
The move is partly a response to what chairman of NSW Farmers grains committee, Mark Hoskinson, said were “bargain basement” cash prices on offer for Australian Standard White (ASW), Australian Premium White (APW) and feed wheat this harvest.
It also reflects dissatisfaction among some growers with how the marketing world has changed since the demise of AWB’s single desk bulk wheat export powers in 2008.
Traders at many storage sites in the south particularly are offering $130 or less a tonne for APW, ASW and feed wheat, though prices for high protein grades such as APH1 (Prime Hard) are relatively buoyant because of concerns about the impact on protein levels from the soft finish to the season.
“After 10 years of drought and a wet harvest last year this is getting very hard to take,” Mr Hoskinson said.
He said a preliminary check of world prices suggested the money offered was about $30 a tonne below what farmers should be getting.
“Traders are factoring in all the risk to be taken by farmers – they are not taking any risk themselves.”
He said also because of the state of the world credit system, buyers could not get the funding to carry a lot of grain and were buying “hand to mouth”.
Mr Hoskinson said the situation was a “catch 22” for farmers.
“They can’t afford to take the prices on offer, yet some are being forced to take it because they need the cash flow.”
Mr Hoskinson said Canada and some other countries were accusing Australia of dragging world prices down.
NSW Farmers had started an investigation to establish what prices growers should be receiving, and although there was no formal proposal yet, was looking at setting up a grower co-operative like the CBH model.
He said the situation called for united action by farmers.
“If we want to continue growing crops we can’t be dictated to by the trade.”
He said CBH truly represented growers and drove profit back to them.
Pools such as those offered by AWB and GrainCorp offer better long term value, with AWB in its latest pool update on November 16 quoting $272/t for APW1 and $259/t for ASW1, for example.
A spokesman for AWB said that for ASW the pool price, after subtracting freight, storage and handling costs represented about a $35/t premium over cash prices.
He said pools covered all of eastern Australia and took a longer term view of the market and of movements in the Australian dollar than cash prices.
However, Rankin Springs grower and NSW Farmers grains committee member Jock Munro said he was concerned that if too much wheat was delivered to pools AWB would close them and open new pools at lower prices.
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