• You will need to login or register before you can post a message. If you already have an Agriville account login by clicking the login icon on the top right corner of the page. If you are a new user you will need to Register.

Announcement

Collapse
No announcement yet.

Ausie grain growers will pay... how about CDN growers?

Collapse
X
Collapse
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Ausie grain growers will pay... how about CDN growers?

    "AWB Inquiry – the truth, the whole truth …” , political commentary by Tony Kevin, posted on Online Opinion, 17 February 2006



    http://www.onlineopinion.com.au/view.asp?article=4169



    Prime Minister John Howard now sees an awful prospect. The AWB inquiry that he initiated has snowballed into risking serious damage to Australia’s Middle East Muslim wheat markets, in aggregate perhaps the largest element of our wheat export trade. He is now pulling out all his tactical stops, sending Mark Vaile to Iraq and descending to an embarrassing level of insincere public bathos. I cannot resist quoting Crikey’s tart verdict (February 15):


    “So why, exactly, should Iraqis think about individual Australian wheat growers? An estimated 100,000 Iraqis have been killed since Australia helped choreograph the little invasion of their country. Anyone in a position of authority is living with assassination as a daily possibility. And the Iraqis who are being asked to “think about individual Australian wheat growers” are experiencing the early days of a long and bloody civil war.


    Despite all that, the prime minister wants Iraqis to think of Australian wheat growers - the same Australian wheat growers who control the dubious corporation that managed to sling Saddam Hussein $300 million under the table, who profiteered from that corruption by getting more for their wheat than it was worth and who mostly still support the idea of a single desk export monopoly because it magically obtains a premium for wheat sales.”


    One side-benefit of the AWB imbroglio is that at last people are beginning to pay attention to politicians’ precise words - as distinct from the general aura they try to project with their words. The patient work of writers like Don Watson in teasing out these techniques is at last bearing fruit. We really do know now that when our prime minister assures us, “My office has had no reports from ONA on that”, he means literally only this. He is not saying that ONA officials have not informally, for example, in the corridors before or after a meeting, briefed him or a staffer about that. To get that answer, you would have to ask him that precise question.


    Similarly, we know now when any senior official is asked if she told a minister’s office about something, and she replies, “no such report was sent”, you really do need to ask her the supplementary question: “But did your department brief the minister or any ministerial staffer orally on this, for example by phone or in corridors, before or after any formal meeting?”


    Former ASIS operative Warren Reed is right to distinguish between formal intelligence reporting and the constant, informal, deniable “buzz” that goes on orally, between senior intelligence officials and ministers or their staff. Of course at that level, the AWB kickbacks would have been discussed and quietly set aside as something on which ministers did not require formal reporting.


    This latter variety of information to ministers is not going to be plausibly deniable for much longer, after the remorseless searchlight of truth that Cole is turning on the AWB dealings with the Wheat Export Authority and with government. Even if Cole lets DFAT off lightly, by calling as witnesses only lower-level officials and not exposing senior officials to questioning, enough has come out of this AWB Inquiry already to change the ground rules of questioning ministers and officials.


    If we look back to children overboard and SIEV X - never the subject of judicial inquiry, though they should have been - opposition senators learned to their cost that loosely worded questions in the general area of public interest do not usually result in public servants releasing torrents of helpful information. These days, public servants are trained to give the minimum information required under the exact wording of the question, as long as they tell no direct discoverable lies. The evidentiary oath, “The truth, the whole truth and nothing but the truth” has become a very loose approximation to the evidentiary games that are routinely played by official witnesses. So as a matter of improving governance, the AWB Inquiry is doing splendid things.


    But at a great cost to Australian farmers. And here the recklessly naïve American alliance-based opportunism of the Howard Government is now sadly evident. Consider: the government refused to have any judicial inquiry into SIEV X, children overboard, the misuse of pre-Bali bombings intelligence warnings, the abuse of faulty coalition intelligence about a mythical Iraqi WMD capability, or Australian ADF assistance in helping the United States cover up from the Red Cross its torture practices at Abu Ghraib. All these serious matters the government addressed either not at all or merely by internal inquiry, despite pressure from senate investigative committees.


    But now, in setting up the AWB Inquiry a few weeks ago, Howard clumsily threw the Australian wheat trade to the tender mercies of Commissioner Cole, the present prime minister of Iraq, and our American and Canadian competitors.


    “Please Sir, we won’t do it again - let us off our caning.” But it isn’t Howard being flogged here. It is our helpless wheat growers. What a damaging series of foreseeable events Howard has set in train, both by his government’s earlier connivance in serious discoverable graft, and now his decision to set up the Cole inquiry to expose it all. Of course the Cole inquiry cannot be stopped now - it has to pursue the truth to the end, let the chips fall where they may. Mostly, it is our vulnerable wheat growers who will suffer.



    Tony Kevin, Canberra 17 February 2006"

    When will the Canadian investigation start... and how much will it hurt "designated area" wheat growers?

    #2
    Tom4CWB,

    Will we find out the hurt is your question?

    The CWB is an instrument of Government. The CWB is not an Act written "in the interest of farmers", although CWB Directors Art Macklin, Nicholson et al could have insisted that phrase be inserted in the Act when the CWB Act was last revised.

    They chose not to fight for farmers.

    The Act is for Government. The Ralph Goodales's and the Chuck Guite's et al made a lot of decisions on behalf of the last Government.

    Is there something buried in the non-accessible to Information Board by such a 'highly ethical' bureaucracy?

    Farmers will be the last to know, and only when they look at their final payments.

    Parsley

    PS
    Shouldn't Minister Strahl ask for all the documents sent from the AWB to the CWB,and replies, the Accredited Agencies involved in the Iraq file, the trucks file for that period, the export licensing approvals, the Iraq/Middle East file, the transportation log, the Export Insurance documentation , and ask for a briefing from the CWB employee in charge of the file?

    And tell farmers something?

    Comment


      #3
      http://finance.news.com.au/story/0,10166,18376200-31037,00.html



      Iraq to buy Australia, Canada wheat
      From: Reuters From correspondents in Baghdad
      March 07, 2006
      IRAQ would buy 850,000 tonnes of wheat from Australian and Canadian firms to complete a 1.5 million tonne tender issued in January, Iraq trade ministry sources said.


      Iraq said yesterday it had signed contracts to buy 500,000 tonnes of wheat from Canada, 350,000 tonnes from Australia and 150,000 tonnes from the United States.

      Comment


        #4
        Looks like the lowest price got the bulk of the business!

        Premiums? What premiums? Who said anything about premiums?

        Comment


          #5
          Oil for Food Scandal

          Translated from French from this webpage:


          http://translate.google.com/translate?hl=en&sl=fr&u=http://www.anarkismo.net/newswire.php%3Fstory_id%3D1241%26type%3Dnonanarchi stpress%26results_offset%3D40&prev=/search%3Fq%3Dlimpex%2B%2BAND%2Bwheat%26hl%3Den%26l r%3D



          "One now knows the name of certain Canadian companies whose implication in the program raises several questions today: Oilexco, Cordex Petroleums Inc, Sasktachewan Wheat Pool and Limpex Trading"


          Who are they?
          Where are they?

          Parsley

          Comment


            #6
            OOHHH NNOOO............not the POOL........one of the bastions of the social gospel for the "social experiment" called Saskatchewan.

            Comment


              #7
              Easy pal...

              Comment


                #8
                cropduster,

                Can you do a little search on google on
                Cordex Petroleums Inc and find out who they represent?

                Parsley

                Comment


                  #9
                  Saddam invested one million dollars in Paul Martin-owned Cordex
                  by Judi McLeod, Canadafreepress.com
                  Friday, April 22, 2005

                  The Canadian company that Saddam Hussein invested a million dollars in belonged to the Prime Minister of Canada, canadafreepress.com has discovered.

                  Cordex Petroleum Inc., launched with Saddam’s million by Prime Minister Paul Martin’s mentor Maurice Strong’s son Fred Strong, is listed among Martin’s assets to the Federal Ethics committee on November 4, 2003.

                  Among Martin’s Public Declaration of Declarable Assets are: "The Canada Steamship Lines Group Inc. (Montreal, Canada) 100 percent owned"; "Canada Steamship Lines Inc. (Montreal, Canada) 100 percent owned"–Cordex Petroleums Inc. (Alberta, Canada) 4.6 percent owned by the CSL Group Inc."

                  Yesterday, Strong admitted that Tongsun Park, the Korean man accused by U.S. federal authorities of illegally acting as an Iraqi agent, invested in Cordex, the company he owned with his son, in 1997.

                  In that admission, Strong describes Cordex as a Denver-based company. Cordex Petroleum Inc. is listed among Martin’s assets as an Alberta-based company.

                  Cordex had a U.S. subsidiary.

                  Two years after taking the Park-through-Saddam one million dollars, Cordex went out of business.

                  On April 20, 1999, Bankrupt.com, an internet bankruptcy library states Kelly J. Sweeney Esquire of the Office of the Trustee in Denver, Col. as appointing four individuals to serve on an official creditor’s committee in the Chapter 11 case "commenced by Cordex Petroleum Inc."

                  Strong’s New Age Baca Ranch is located in Crestone, Colorado.

                  Indeed, according to Marci McDonald in Walrus Magazine, "Cordex Petroleums was formerly known as Baca Resources." (April 21, 2004).

                  …"Still, Strong has never been far from his protégé’s side. Over the years, Martin has been a shareholder in at least two of Strong’s companies, including the defunct Cordex Petroleums, formerly known as Baca Resources. But Strong’s chief influence has been in shaping the trajectory of Martin’s career–business first, politics later, the eye on the prize always. ‘My basic advice to him was, `Paul, don’t try to ride two horses at once, ‘ Strong says. When it came time to move to the next horse, Strong was waiting to give him the nod at the starting gate. When Martin was ready to throw in the political towel after (Prime Minister Jean) Chretien made clear he was sticking around for another election, Strong invited the finance minister to his log retreat in the Kawarthas for a weekend of cheerleading. `I said, `Paul, you’ve got a big investment in public life,’ Strong recounts. `You’ve come this far, you should stay in there.’"

                  According to the today’s New York Sun, "the next chapter in the United Nations crisis may erupt over U.N. investigator Paul Volcker’s membership on the board of one of Canada’s biggest companies, Power Corporation, since a past president of the firm, Canadian tycoon Maurice Strong, is now tied to the oil-for-food scandal."

                  The missing facts are: Not only are Volcker and Strong hooked with the ties that bind to Power Corporation Inc., a company under investigation in the oil-for-food scandal, Prime Minister Paul Martin was launched into the business world with Canadian Steamship Lines by Paul Desmarais’s Power Corporation Inc. and his predecessor Jean Chretien’s daughter, France is married to Paul Desmarais’ son, Andre Desmarais.

                  On national television last night, Prime Minister Paul Martin appealed for time in a six-minute address to the Canadian public, promising an election after the final Gomery report probing the mega-million dollar Liberal Party Adscam scandal.

                  Martin’s public address to Canadians coincided with the very day that his long-time mentor Maurice Strong was tied to the $65-billion UN oil-for-food scandal.

                  Was Martin using the Adscam scandal as a distraction in a Maurice Strong Cordex oil-for-food scandal that would inevitably lead back to him?

                  At press time the Prime Minister’s office had not returned CFP’s telephone call.

                  Prime Minister Paul Martin may be rejected by Canadian voters when Conservative Leader Stephen Harper calls the next federal election, but not likely over Adscam.

                  When the Prime Minister of Canada falls, ironically he will have been taken down by his lifelong mentor, Kofi Annan pointman, Maurice Strong.

                  Should we be surprised?

                  Comment


                    #10
                    CANADA: UN Probes $23.15 Million Payment to Saskatchewan Wheat Pool in Oil-for-Food Scandal

                    The Saskatchewan Wheat Pool has emerged as one of the companies involved in Iraq oil-for-food deals now under investigation by a U.S. congressional committee probing the United Nations aid program, which Saddam Hussein manipulated to skim off billions of dollars for himself.

                    by Steven Edwards, CanWest News Service
                    April 30th, 2005




                    UNITED NATIONS -- The Saskatchewan Wheat Pool has emerged as one of the companies involved in Iraq oil-for-food deals now under investigation by a U.S. congressional committee probing the United Nations aid program, which Saddam Hussein manipulated to skim off billions of dollars for himself.

                    The focus on the company comes as the UN announced Friday it had discovered a staff-rule violation by Canadian businessperson and international diplomat Maurice Strong, whose long record at the world body is being reviewed after he, too, was recently swept up in the swirl of oil-for-food allegations and inquiries.

                    Six U.S. congressional committees and the UN itself are investigating the $50.92-billion program following allegations of mismanagement and corruption that helped Saddam siphon off funds through kickbacks and other forms of manipulation. A U.S. federal investigation is also underway in New York, and has already issued several indictments.

                    Among those indictments are charges against Korean businessperson Tongsun Park for allegedly trying to bribe UN officials with Iraqi funds.

                    Strong, named in 2003 as UN special adviser on North Korea because of his abundance of contacts in the region, subsequently acknowledged he'd had business ties with Park. UN spokesperson Stephane Dujarric said a review of Strong's employment by the UN showed the Canadian had put his stepdaughter on his payroll in violation of UN rules.

                    Strong has not been accused of any wrongdoing in the oil-for-food program, and has denied any connection to it. Pending investigation by the UN oil-for-food probe into his business ties with Park, he has nevertheless stepped down as North Korea envoy.

                    The congressional hearing in which the Saskatchewan Wheat Pool was mentioned Thursday saw BNP Paribas, the bank the UN used to broker deals in the oil-for-food program, acknowledge it improperly made 403 payments to third parties or their banks rather than to companies approved by the UN to deliver goods for Iraq.

                    Four of those payments are listed as going to the Saskatchewan Wheat Pool from 1999-2000, total value $23.15 million, and another two went to a Canadian-registered company called Limpex Trading in 2001, total value $124.1 million.

                    No allegation of corruption has surfaced, but congressional officials want to know more about the payments.

                    Officials of the Pool, Saskatchewan's largest grain handler and marketer, say that "as an accredited exporter for the Canadian Wheat Board," the Pool sent wheat to Iraq at that time.

                    They explain five vessels carried the shipments under the oil-for-food program, which the UN launched in late 1996 as a way to provide food and medicine to ordinary Iraqis as it pressed sanctions against the Saddam regime over weapons inspections.

                    "We received all the required verified approvals, and I have no reason to question the documentation wasn't valid," Mayo Schmidt, chief executive officer of the Saskatchewan Wheat Pool, said Friday in an interview.

                    "We disclosed in our annual report of 2000 that there were shipments to Iraq. In fact, we ended up suffering an $8.7-million loss because portions of the CWB wheat were rejected, and there were costs related to unloading delays and the transfer of the wheat to alternative buyers."

                    The UN directed the New York branch of Banque Nationale de Paris, which later became BNP Paribas, to handle finances for the six-year program, which ended following Saddam's overthrow.

                    Appearing at the hearing, held by the U.S. House subcommittee on oversight investigations, Everett Schenk, chief executive of BNP Paribas North America, said "some mistakes were made" as the bank processed 54,000 payments. But of the 403 he said "should not have occurred," he said the bank has uncovered no evidence any were "related to any corruption which may have occurred in the oil-for-food program."

                    Schmidt said the Pool will provide documentation of its shipments to Iraq "if asked by an agency of government that requires information about" them.

                    Comment


                      #11
                      Not to be outdone by Adam Smith, I googled the Limpex company.

                      Limpex listed:

                      "671, rue Gertrude,
                      Fabreville, QC H7P 3A4
                      Tel. : 450-625-2222
                      Category : Exporters
                      Directory : Laval"


                      From www.smalldeadanimals.com website:


                      "Found Limpex in a cached page containing this text:


                      Sell ::: BITUMEN TO SELL 19900

                      BITUMEN TO SELL
                      Country: Iran
                      Sub category: Bitumen
                      Company Name: LIMPEX
                      Contact person: Davood Abbasi
                      Offer detail:
                      WE ARE IN THE POSITION TO PROVIDE THE BEST QUALITY OF IRAN NIOC BITUMEN IN ANY GRADES AND ANY QUANTITY IN BULK, NEW STEEL DRUMS, AND POLY BAGS WITH THE BEST AVAILABLE MARKET RATES IN SHORTEST TIME.
                      my mail: daabbasi@ aol. com & limpexco@ hotmail. com
                      TEL: 98 21 8899491/ 3
                      FAX: 98 21 8892825
                      Phone: 0098 21 8899491
                      Fax: 0098 21 8892825


                      Limpex
                      Leave me a message


                      About Us
                      We are one of the leading companies in export since 1986. And in position to provide best quality of nioc bitumen(national iranian oil company in new steel drums, bulk, poly bags, with the best possible market rates in shortest time.. Also base oil and related products. Our company has a clean and proud back ground in export."


                      ALSO:
                      " We are also involved in shipping services which is our other company."



                      Contact InformationCompany Name: Limpex
                      Contact Person: Mr Davood Abbasi
                      Leave me a message
                      Address: No.72 Sepand St. Ostad Nejatolahi(Villa) Ave., Tehran, Tehran, Iran (Islamic Republic of)
                      Zip: 15986
                      Telephone: 98 21 88899491 / 2
                      Fax: 98 21 88892825
                      Mobile Phone: 0098 912 5031022 "



                      Should be an interesting phonecall. Maybe a CWB Farm Rep can facilitate the call.

                      Parsley

                      Comment


                        #12
                        OILEXCO INCORPORATED

                        TSX VENTURE, AIM SYMBOL: OIL

                        May 23, 2005

                        Oilexco Closes Pounds Sterling 10 million Bridge Financing with Royal Bank of Scotland

                        CALGARY, ALBERTA--(CCNMatthews - May 23, 2005) - Oilexco Incorporated ("Oilexco") (TSX VENTURE:OIL) (LSE:OIL) and its wholly owned subsidiary Oilexco North Sea Ltd. signed a Pounds Sterling 10 million bridge loan facility provided by the Royal Bank of Scotland. This facility is the first financing under the engagement letter of February 7, 2005, by which Oilexco appointed the Royal Bank of Scotland as exclusive arranger of debt financing for the development of the Brenda oil field in the North Sea. "This bridge facility allows us to order certain equipment which has a long lead time, as we work on the larger Project Facility which will take a few more months to negotiate and finalize," said Arthur Millholland, President of Oilexco. "We are extremely pleased with this bridge facility, which is the first stage of the financing programme foreseen in the engagement letter signed in February. The experience and knowledge of the Royal Bank of Scotland has been of great assistance to us and we look forward to continuing to work with them on the Project Facility. We are also pleased to welcome the Royal Bank of Scotland to our group of equity holders, as was contemplated in our original engagement letter."

                        As part of the fee payable in connection with the bridge facility, Oilexco has issued the Royal Bank of Scotland a share purchase warrant to acquire 400,000 common shares of Oilexco at a price of Pounds Sterling 1.20 (or C$3.00) at any time over the next 18 months. The share purchase warrants are subject to a 4 month hold period expiring on September 21, 2005 after which time the underlying shares can be traded.

                        Forward Looking Statements

                        This disclosure contains certain forward-looking estimates that involve substantial known and unknown risks and uncertainties, certain of which are beyond Oilexco's control, including: the impact of general economic conditions in the areas in which the Company operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations, therefore Oilexco's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, which Oilexco will derive therefrom. All statements included in this press release that address activities, events or developments that Oilexco expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include future production rates, completion and production timetables and costs to complete well. These statements are based on assumptions made by Oilexco based on its experience perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.

                        Oilexco is listed on the Alternative Investment Market of the London Stock Exchange plc ("LSE-AIM") and the TSX Venture Exchange ("TSX-V"), trading under the symbol OIL.

                        -30-

                        FOR FURTHER INFORMATION PLEASE CONTACT:

                        Oilexco Incorporated Arthur S. Millholland President (403) 262-5441


                        OR


                        Oilexco Incorporated Brian L. Ward Chief Financial Officer (403) 262-5441

                        Comment


                          #13
                          from www.adamyoshida.com

                          Wednesday, January 28, 2004
                          Treason
                          A list has been published of people who were bribed with Iraqi money and oil by the former regime.

                          From the MEMRI:

                          Canada: Arthur Millholland, president and CEO of the Calgary-based Oilexco company, received 1 million barrels of oil.

                          Then, look at this:

                          Making money first drew Arthur Millholland to Iraq.

                          He thought getting involved in the Oil For Food program would leave his
                          company, Oilexco, in good standing when the sanctions ended.

                          But it didn't take long before he became disillusioned with the program and
                          an outspoken activist.

                          The transformation was simple.

                          ``You can't ignore what you see,'' says Millholland, 40, the company's
                          president, from his office in Calgary. ``It's appalling.''

                          When he first saw starving children on the streets, he thought that buying
                          Iraqi crude oil - he pays the United Nations which in turn gives Iraq food
                          and medicine - would make him feel like he was helping.

                          It hasn't worked out that way.

                          ``It's a huge problem. The Oil For Food program is just a Band-Aid. It's not
                          going to fix anything.''

                          Lifting the sanctions is the only way to make the lives of ordinary Iraqis
                          better, he believes.

                          Yep, a real 'activist' there.

                          Comment


                            #14
                            It appears at the minute sales sales from awb are progressing as usual except iraq with new sales to india and increased sales to other middle eastern countries.

                            some comments

                            AWB and the Single Desk If the single desk survives the current situation, nothing will kill it off. In fact if we do not get changes now, it is very unlikely that the current system can ever be reformed. My guess is that we are in for changes, but that some form of legislated, organised marketing for wheat exports will remain.

                            The Prime Minister is starting to say things along the lines that we can have a single desk without AWB involved. He and others are also talking a little more about trading the single desk off for concessions from the US and EU in the current WTO multilateral trade negotiations.

                            I think one of the most difficult ways forward would be to take the whole single desk away from AWB in one hit and give it to another entity, and expect that entity to be able to perform better than AWB can. To be frank I don’t think anyone else would be able to in the first year at least, and what happens to this year’s pool? Does its management get transferred to a new entity part way through its life? And what about AWB shareholders? Is it equitable to simply decimate a core part of their business when no-one has indicated that AWB failed to deliver the best possible returns to growers.

                            Basically it’s a can of worms of course. The reality is that things have to change to prevent the current situation, or something like it, from happening again. Any entity that has government backing, but is managed autonomously from the government, has the ability to embarrass the government, through to possibly bringing the government down. In my view the current government will not allow the risk of that occurring again in the case of AWB. There will be changes with either AWB being dealt out completely, or in a structure that makes them only one of several parties dealing with exporting wheat from Australia.

                            A New Single Desk Arrangement It is apparent that the government want to leave wheat exports with Australian companies where growers have a large stake. That means ABB, WACBH, and GrainCorp (and possibly AWB as well). How can you pick one ahead of another? Probably it will be awarded jointly.

                            One way forward would be a similar model to Grain Australia, where WACBH and ABB operate together to sell barley, with proceeds from every sale split on a pro rata basisA fair approach to all stakeholders would be to involve all four companies.
                            • They would have a joint venture that handled all export sales.
                            • Each company would run their own pool and cash buying systems.
                            • They would all operate in all regions of Australia so that growers would have a competitive choice of pooling and risk management systems, finance products and cash prices.
                            • At the end of harvest they would all have a share of the crop and therefore, as with Grain Australia, a system for allocating all sales would be able to be determined.

                            We would still have a single desk for exports, and still have collective marketing, while growers would actually have some real choice in the provision of marketing services.

                            At the recent ABB meetings in SA, ABB management and directors could not get their heads around the concept of a separate, independent company just handling exports under a single desk. They kept asking where the capital base would come from for grower advances etc. Pretty simply really. The company that is selling into the export market does no make advances, therefore needs no huge capital backing etc. Basically the Grain Australia model, of which ABB is a party, is the answer. Grain Australia sells the barley but does not involve itself in any hedging, grower payments etc.

                            Why would another entity then provide loans etc against a pool basically being managed by an independent entity over which they have no control? This is only a short step from NAB offering loans against AWB pools, or ABB offering advances against Grain Australia sales etc. It will happen.

                            Basically, don’t get acquisition (or accumulation) of the Australian wheat crop confused with the concept of a single desk which sells on an fob basis. In the above model, we have four companies allowed to acquire the crop competitively from growers, who then participate in the export of that wheat through a single export entity.

                            New Systems for Wheat If anyone makes changes to wheat marketing, not only must growers be told what the changes are, we must be told what the changes really mean.

                            When we lost the GMP system back in 1989, we were not told what it meant. The net result was that all growers lost a lot of money when world prices collapsed in 1990, because no-one had told us that we needed to manage our own price risk before harvest. In fact no-one (ie AWB) even bothered to give us products to replace the GMP until after the bloodbath of 1990. That cannot be allowed to happen again. All players (companies, government, and grower organisations) are on notice to get their act together this time.

                            Some impacts of a new system could be
                            1. Very little forward export sales of wheat, hedging of wheat or hedging of currency takes place in a new system.
                            2. This will leave growers even more exposed than they are now, particularly on currency, but also on wheat prices as well.
                            3. A lowering of the price management after delivery if a number of companies have to wait and see what tonnage they are managing before they begin actively hedging their stocks even after harvest. Growers may have to extend their own period of price risk management if they are using pools.
                            4. Much more competitive forward cash prices. This would be novel as it may make fixed price forward contracts more attractive again, at least from the perspective of the prices on offer.
                            5. Pools that open and close even before harvest commences so that we might actually end up with pools that manage prices before harvest, rather than the current system where all growers have to do it themselves or it doesn’t get done at all.

                            One thing that must change is truth in pricing at all times.
                            • Gone must be the current system where pool operators are allowed to post bogus, inflated estimates that do not refect what they will actually, physically end up remitting to growers.
                            • Gone must be AWB’s system of quoting the APW pool at 10% when there is no such thing as an APW 10% protein wheat anymore.

                            Basically there must be compete clarity and honesty in quoting pool returns and cash prices, which is not what we have a the moment. The difference is that in any sort of slightly deregulated system it will really matter. Now no grower is going to lose their shirt by choosing one pool over another, although they may currently miss good cash selling alternatives. Going forward with pools that are really independent of each other, in the way they are structured and priced, it really will matter.

                            Comment

                            • Reply to this Thread
                            • Return to Topic List
                            Working...