AUSTRALIA'S largest grains handler CBH Group could lose its iron grip on Western Australia's crop production after the competition watchdog yesterday said it would consider allowing third-party operators to transport some agricultural commodities to the co-operative's ports.
Grain marketers argued to the Australian Competition and Consumer Commission that allowing competition for grain transportation would make CBH more competitive, The Australian Financial Review reports.
"The ACCC recognises the potential benefits in CBH offering a whole of supply chain receival, storage, handling and transport service," ACCC chairman Graeme Samuel said.
"However, the forced tying arrangement is not necessary to realise these benefits. To the extent that CBH's storage, handling and transport service is an efficient system, delivering benefits to growers, they will continue to use it without being forced to do so."
The ACCC is seeking comments on a proposal to revoke rights granted to CBH by the regulator that requires growers that use its storage facilities to also use its transport systems. It is also seeking feedback on appropriate timing to revoke the right.
