Grain Pool to retain exclusive control over all exported grain

January 30, 1996

Primary Industry Minister Monty House said today that the single desk seller status would remain for the sale of Western Australian grain exported by the Grain Pool of WA.

Mr House made the announcement at the launch of the Grain Industry Review blueprint that will guide the State's grain industry into the 21st century.

He said there would be no deregulation of the prescribed grain export market and the Grain Pool of WA would retain the exclusive control over all prescribed grains grown in WA and sold for export.

"Surveys conducted as part of the review revealed about 70 per cent of growers are in favour of deregulating the domestic market but not the export market," Mr House said.

"The review recommends that the domestic market be deregulated and that will occur."

The blueprint is the outcome of a major 12-month review of the grain industry which was established to ensure the State's $500 million legume and coarse grain industry was able to meet future marketing challenges and stay ahead of fierce international competition.

Mr House said the report showed WA's grain industry was about to enter a major growth period over the next decade and changes were needed to ensure the industry had a world-class production and marketing system.

"This review is the first in-depth look into the State's grain industry and included consultation with grain growers, processors, exporters, traders and value adders," the Minister said.

"It is comprehensive and gives stability to growers as to which direction their industry is heading.

"The blueprint will guide the industry to strive for profitability, productivity and professionalism and to deliver grain products that meet customers requirements and specifications."

Mr House has accepted all the Ministerial Steering Group's unanimous recommendations and will seek further industry input on a number of the other recommendations, but has reiterated his and the Government's support for single desk seller status for the export market.

"The domestic grain market will be completely deregulated by the start of the 1996-97 season giving growers greater marketing options and flexibility," he said.

"Consultation with growers and industry leaders throughout the review period showed there was strong support for deregulation of the domestic market and a belief that a regulated domestic market had outlived its usefulness and was retarding industry development."

Mr House said the review committee's recommendations to deregulate value-added products, such as packaged and processed grains like flaked lupins or branded bags, would be accepted and implemented by the start of the 1996-97 season.

Subject to approval by the Grain Pool, individual farmers and companies would be able to export prescribed grain in containers freely under a permit system.

"The report indicated value-adding of grains is capable of adding millions of dollars of value to the WA economy and farmers must have the opportunity to freely access these processing markets," Mr House said.

He said processes would be put in place so that the Grain Pool would become more accountable to both industry and the State Government through a number of strategies including the preparation of forward corporate plans and the presentation of annual reports to grower stakeholders.

Other recommendations supported by the Minister include:

·       the increase from two to three commercial representatives appointed by the Minister on the Grain Pool board of directors;

·       the formation of a technical expert group to work in consultation with the Grain Pool to evaluate the organisation's method of operation and the best way to take it into the 21st century;

·       the establishment of Partnership Groups consisting of all industry interests to develop long term strategies for the industry consistent with those in the blueprint; and -

·       de-listing linseed as a prescribed grain.

Mr House said growers would continue to elect directors of the Grain Pool board (with the exception of the three Ministerial appointments) and he would seek further input from industry, the Pastoralists' and Graziers' Association and the WA Farmers Federation about the current zone system and boundary structure.

The committee recommended a second review be carried out in 1999 to assess the impact of the changes implemented and meet the national competition policy timetable.

Extensive industry consultation included regional meetings with growers, a telephone survey involving 10 per cent of growers, a written submission period, workshops and industry interviews.

Mr House thanked the members of the Ministerial Steering Group who reflected a wide cross section of the WA grain industry, and paid tribute to the efforts of the chairman Mr Leigh Warnick.

Media contact: Nicole Trigwell 481 2044, 0411 470 831.