Recent comments by: merchant
Burrs under my saddle
I think it is very wise to overlay risk management principles on this issue, well done Pete. To those that downplay the global warming and climate change arguments, I ask the following economic question: how will your farm production be affected if there is a permanent temperature increase of 3 degrees or if your highest recorded temperature keeps breaking new ground?
Do you see it as good management to build contingencies into your production system?
What seems to be the problem with blending?
Is there any farmer out there who, with logistical capacity, doesn't try and "manage" the specs of their wheat or other grain in order to maximise their bottom line? Come on Jock, surely you have put some higher moisture grain on the bottom of a truckload at some time or another.
Jock, As a wheat seller; can you put year on year numbers on the amount you have been paid in basis for your grain?
To all the growers reading this;
If you were to compare domestic up country prices with FOB prices then you would find that this spread has narrowed since the removal of the single desk. This is a direct result of increased competition and increased infrastructure spending.
The single desk didn't ever had any influence on the international grain price (CBOT) and reintroducing a single desk will not change this scenario.
The single desk did promote inefficiencies in the cost of the domestic supply chain, and it did smooth out some peaks and troughs in farmgate prices.
Is the mission statement of this Co-op going to be based around boosting the returns to the farm gate? Lots of Co-ops have imploded with the same mission statement.
Your comments are full of blind rhetoric. Reality is that the grain farmers have never been more serviced than they are now. The transparency in the grain supply chain is at an all time high. Costs of engaging the supply chain are going down not up. Jock, have a look at the export figures since the single desk was abolished, the results are far greater than AWB could achieve. Look at the Port facilities being developed, that investment is a direct impact of competition. The real issue is that Aussie farmers struggle to produce grain cheaper than the Black Sea region. Ask a flour miller.