Growers support single desk

THE Grains Council of Australia (GCA) has strongly supported comments about the continued need for single desk wheat export arrangements by Deputy Prime Minister Mark Vaile.
GCA chairman Murray Jones said Mr Vaile’s comments accurately reflected the hurdles faced by Australian wheat producers in competing for export markets.
“Mr Vaile’s strong commitment to retaining single desk arrangements will be comforting for producers in light of the ongoing Cole Inquiry and comments by other senior Ministers which conflict with the Coalition’s election commitment to refrain from further reviews of the arrangements until 2010,” Mr Jones said. “While AWB Ltd’s operations are under scrutiny at the Inquiry, the single desk is not.
“Australia produces only 2.5 per cent of the world’s wheat, and we have our backs against the wall trying to sell our wheat into a market distorted by excessive subsidies and subversive tactics adopted by our competitors.
“It is no surprise that opponents of the single desk are being supported by US wheat interests, who have a vested interest in seeing Australian producers disadvantaged at every possible opportunity.
“The current US agriculture budget contains up to $20 billion in direct subsidies to US farmers, and includes an additional US$900 million in spending on export credit programs.
Mr Jones said this program allowed exporters to offer uncommercial credit terms for US wheat to international customers and was grossly unfair competition for Australia.
“Australian wheat producers need a strong grower owned and controlled wheat export system which will combine all available resources to capture and maintain current and future markets,” he said.