The wheat and grain industry of Australia has been a major agricultural export industry providing significant parts of Australia with a viable industry and profitable crop for over one hundred years.[1][2]
1915 to 1949
In 1915, an Australian Wheat Board was constituted, comprising the Prime Minister and a Minister from each wheat growing state. The Board was created under the War Precautions Act 1914 to administer a wheat pooling scheme. The scheme was designed to assist wheat growers and ensure appropriate management of vital foodstuff during World War I.[3][4]
In 1921 the Australian Wheat Board ceased operation.[5] Regional wheat pools were established, often managed by farmer cooperatives.[6]
In 1939 the Australian Wheat Board was re-established as a war time measure. It was created as a statutory authority with a monopoly over purchasing and exporting all Australian wheat (the "single desk").[7][8]
Following World War II, in 1948 peacetime single desk legislation was introduced by the Wheat Industry Stabilisation Act 1948 to create the Australian Wheat Board.[9]
The Act was designed to shelter growers from volatile wheat prices and comprised:
guaranteed prices to growers, a home consumption price, a stabilisation fund;
compulsory pooling and coordinated marketing; and
powers to acquire all wheat produced in Australia and the sole rights to market that wheat in Australia and overseas.
1950 to 1979
At the instigation of industry, in 1969 restrictions were placed on the quantities of wheat that could be delivered to the Australian Wheat Board in the form of wheat quotas. This was an attempt to reduce the potential for the build-up of excessive carryover stocks after the record 1968–69 Australian wheat harvest coinciding with the build-up of world wheat stocks.
In 1979 new legislation gave the Australian Wheat Board power to issue permits to growers, allowing them to deliver wheat directly to a domestic customer rather than into the bulk handling system. The Commonwealth Government introduced the Wheat Levy Act (No.1) 1979. This $2.50 per tonne levy was payable by the Australian Wheat Board to the Commonwealth Government.
1980 to 2009
The domestic stock-feed market for wheat was effectively deregulated which allowed growers to sell wheat to anyone they chose under a permit system. The Wheat Levy Act (No. 1) 1979 was repealed.
In response to the rural recession of the 1980s, in 1986 the Government conducted a Royal Commission into Grain Storage, Handling and Transport to advise on the most efficient and cost-effective grain distribution system for Australia's future needs. The Commission's recommendations included deregulation of the wheat distribution system to minimise costs.
By 1989 the domestic wheat market was fully deregulated with the introduction of the Wheat Marketing Act 1989, which also restricted exports other non-Australian Wheat Board members.[clarification needed][10] The Commonwealth Government introduced the Wheat Industry Fund Levy Act 1989 (WIF), a compulsory levy on the value of the wheat. The WIF's purpose was to release the government from directly guaranteeing the Australian Wheat Board's loans and allow the Australian Wheat Board to finance its own commercial borrowing arrangements.
In 1999 the Australian Wheat Board ceased operation as a government controlled statutory authority. It becomes AWB Limited, a grower-owned and controlled corporation. At this time, all government financial assistance, such as the underwriting of borrowings ceased. Through subsidiary company, AWB (International) Limited (AWBI), AWB Limited continued to be the sole exporter of bulk wheat from Australia via the "single desk" system.
The Government regulator, Wheat Export Authority, was established as a statutory authority to:
monitor and report on AWBI's performance in managing the National Pool;
control the export of wheat in containers and bags by non-AWBI exporters through issuing export consents; and
issue licenses for bulk wheat exports, although AWBI held a power of veto over the issuing of a bulk license.
In 2000, a National Competition Policy Review of the Wheat Marketing Act 1989 was completed. Recommendations included that "if a compelling case can be made by the time of the 2004 review that there is a net public benefit, then the ‘single desk’ should continue with ongoing regular Wheat Export Authority reviews of AWBI's performance in managing the single desk, and if necessary, a further National Competition Policy review in 2010."
In 2003 the Wheat Marketing Act 1989 was amended to provide funding for Wheat Export Authority through the Wheat Export Charge, a 22-cent levy on all wheat exports.
The 2004 Wheat Marketing Review examined AWBI's performance as the commercial manager of the single desk and the effectiveness of the Wheat Export Authority in monitoring and reporting AWBI's performance. The review made a number of recommendations relating to the governance of AWBI and its independence from AWB Ltd and the remuneration arrangements for services provided by AWB Ltd. The review also recommended improvements to the Wheat Export Authority's monitoring of AWBI and the introduction of a streamlined, longer-term consent system for bags and containers.
In February 2005 the Australian Government released the Productivity Commission Review of National Competition Policy Reforms which recommended an independent review of the future of the "single desk" in accordance with National Competition Policy principles as soon as practicable. While in November 2005 the Australian Government appointed Terence Cole QC to conduct an inquiry into the United Nations (UN) Oil-for-Food program and involvement of Australian Companies including AWB Limited and AWB (International) Limited (AWBI). This was in response to UN Secretary General issuing a statement on abuse of the Oil-for-Food program. The Cole Inquiry reported its findings in 2006 and the Government responded to the Cole Inquiry, which includes transferring AWBI's power of veto over bulk exports to the Minister of Agriculture, Fisheries and Forestry, on a temporary basis.
In January 2007 the Government announced that the Wheat Export Marketing Consultation Committee to undertake extensive consultation with the Australian wheat industry, particularly growers, about their wheat export marketing needs. The committee reported to the Government 30 March 2007. In May, the Prime Minister announced changes to the wheat marketing arrangements including:
AWBI to market the 2007/08 harvest;
the veto power over bulk wheat exports will remain with the Minister for Agriculture, Fisheries and Forestry, Mr Peter McGauran, until 30 June 2008;
growers will be given until 1 March 2008 to form a new entity to manage the single desk (a new entity or a demerged AWBI); and
the WEA will be given additional auditing and reporting powers; and
container and bag exports will be deregulated.
In August, following legislative changes, the export of wheat in bags and containers was deregulated to the extent that exporters no longer had to apply to the Wheat Export Authority for consents to exports. All new shipments had to comply with the requirements of the Non-bulk Wheat Quality Assurance Scheme which was put in place to help protect the reputation and quality of Australia's wheat exports. In October, the Export Wheat Commission (EWC) was established to replace the Wheat Export Authority.
In June 2008 the Wheat Export Marketing Bill 2008 and the Wheat Export Marketing (Repeal and Consequential Amendments) Bill 2008 reforms were approved. The Export Wheat Commission drafted the new Wheat Export Accreditation Scheme 2008 for bulk wheat exporters. One month later the Government deregulated the marketing of bulk wheat exports by repealing the Wheat Marketing Act 1989, and Wheat Exports Australia was established under the Wheat Export Marketing Act 2008. This removed AWBI monopoly on Bulk wheat exports (the "single desk") and provided for the Wheat Export Accreditation Scheme.
2010 to date
This section needs to be updated. Please help update this article to reflect recent events or newly available information.(March 2018)
In July 2001 the Productivity Commission Report recommended for the abolition of the Wheat Export Accreditation Scheme, Wheat Exports Australia (WEA) and the Wheat Export Charge. Port access test is recommended to continue to 2014.
In September 2011 the Government agreed in principle with the Productivity Commission's recommendations but indicated it will delay abolishing the Wheat Export Accreditation Scheme and the Wheat Export on 30 September 2012. Wheat Exports Australia will be wound up by 31 December 2012.
The Canadian Wheat Board was a marketing board for wheat and barley in Western Canada. Established by the Parliament of Canada on 5 July 1935, its operation was governed by the Canadian Wheat Board Act as a mandatory producer marketing system for wheat and barley in Alberta, Saskatchewan, Manitoba, and a small part of British Columbia. It was illegal for any farmer in areas under the CWB's jurisdiction to sell their wheat and barley through any other channel than the CWB. Although often called a monopoly, it was actually a monopsony since it was the only buyer of wheat and barley. It was a marketing agency acting on behalf of Western Canadian farmers, passing all profits from its operation back to farmers. Its market power over wheat and barley marketing was referred to as the "Single Desk".
The Australian Trade and Investment Commission, or Austrade, is the Australian Government's trade, investment and education promotion agency which was also given responsibility for tourism policy, programs and research from 2013. Austrade was established under the Australian Trade Commission Act 1985. It is a non-corporate Commonwealth entity under the Public Governance, Performance and Accountability Act 2013, and a statutory agency under the Public Service Act 1999. Austrade is part of the Foreign Affairs and Trade portfolio.
AWB Limited was a major grain marketing organisation based in Australia. Founded in 1939 by the Government of Australia as the Australian Wheat Board, in 1999 it became a private company, owned by wheat growers. It was acquired by Agrium in 2010.
The Export Wheat Commission (EWC) was a statutory authority of the Australian government. The EWC was established on 1 October 2007 and superseded the Wheat Export Authority (WEA). The EWC was a statutory commission operating under the Financial Management and Accountability Act 1997.
The Cole Inquiry, formally the Inquiry into certain Australian companies in relation to the UN Oil-For-Food Programme, was a Royal Commission established by the Australian government pursuant to the Royal Commissions Act 1902 to investigate "whether decisions, actions, conduct or payments by Australian companies mentioned in the Volcker Inquiry into the United Nations Oil-for-Food Programme breached any Federal, State or Territory law."
Trevor James Flugge is an Australian farmer and businessman. He is best known as a former official of the Australian Wheat Board (AWB). He joined the board in 1984, was chair of AWB in 1995–2002, and was present at meetings in Iraq which were linked to the Oil-for-Food scandal, and an inquiry by the United Nations.
El Zorro was an Australian railway operator hauling freight and infrastructure trains in Victoria and New South Wales.
The Wheat Export Authority (WEA) was established 1 July 1999 as part of restructuring the former government-owned Australian Wheat Board in preparation for its sale as AWB Limited. It was felt that a number of the tasks carried out by the previous Australian Wheat Board would not be appropriate for a privately owned body; thus, the WEA was established. The WEA's role was determined by the Wheat Marketing Act 1989 and its operations were funded by a charge on Australian wheat exports.
The CBH Group, is a grain growers' cooperative that handles, markets and processes grain from the wheatbelt of Western Australia.
A wheat pool is a co-operative that markets grain on behalf of its farmer-members.
The Rubber Board is a statutory body constituted by the Government of India, under the Rubber Act 1947, for the overall development of the rubber industry in the country.
NEAT Domestic Trading Pty Ltd v AWB Ltd was a case before the High Court of Australia which was decided in 2003.
Wheat Exports Australia (WEA) was an Australian government agency that regulated the export of bulk wheat through the bulk Wheat Export Accreditation Scheme. The Wheat Export Marketing Amendment Act 2012 was passed by parliament on 29 November 2012, abolishing Wheat Exports Australia
Kiwifruit or kiwi is a major horticultural export earner for New Zealand. New Zealand developed the first commercially viable kiwifruit and developed export markets, creating the demand for the fruit that exists today. Today New Zealand is the third largest kiwifruit producing country, next to China and Italy, and holds approximately 30% of the market share. In the 2008–2009 season the value of New Zealand kiwifruit exports was NZ$1.45 billion.
The AWB oil-for-wheat scandal refers to the payment of kickbacks to the regime of Iraqi president Saddam Hussein in contravention of the United Nations Oil-for-Food Humanitarian Programme. AWB Limited is a major grain marketing organisation based in Australia. For much of the 20th and early 21st century, it was an Australian Government entity operating a single desk regime over Australian wheat, meaning it had the sold ability to export Australian wheat, which it paid a single, fixed price for. In the mid-2000s, it was found to have been, through middlemen, paying kickbacks to the regime of Saddam Hussein, in exchange for lucrative wheat contracts. This was in direct contradiction of United Nations Sanctions, and of Australian law.
A single desk is a monopoly marketer and buyer of a product with multiple suppliers. They were common in markets for agricultural produce.
CBH grain receival points are grain silos spread around Western Australia, primarily in the wheatbelt region. Historically they have been linked with the wheatbelt railway lines, and the transport of grain to ports for export.
Appleton Dock is an international shipping facility in Melbourne, Victoria, Australia. It was opened in about 1956 by the Melbourne Harbor Trust, and is named after MHT commissioner William Thomas Appleton (1859-1930), who was a staunch advocate of harbour improvements in the early 20th century.
The Potato Marketing Corporation of Western Australia (PMC) was a statutory corporation created by the Government of Western Australia's Marketing of Potatoes Act 1946. It was charged with managing the supply of fresh table potatoes in Western Australia. The statutory corporation operated to ensure licensed growers supplied potatoes all year round to the WA consumer market. The corporation was self-funded by revenue from licence fees and did not receive financial support from the state government. The agency dictated the varieties and volume in the WA potato market.
Mark Allison is an Australian agricultural industry manager. He is a chief executive officer and managing director of Elders Limited and holds several other positions at the industry organizations.
↑ Whitwell, Greg; Sydenham, Diane, 1951- (1991), A shared harvest: the Australian wheat industry 1939-1989, Dept. of Economic History, University of Melbourne, ISBN978-0-7329-0584-2{{citation}}: CS1 maint: multiple names: authors list (link)
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.
