Single desk

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A single desk is a monopoly marketer and buyer of a product with multiple suppliers. They were common in markets for agricultural produce.

Monopoly market structure with a single firm dominating the market

A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity. This contrasts with a monopsony which relates to a single entity's control of a market to purchase a good or service, and with oligopoly which consists of a few sellers dominating a market. Monopolies are thus characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit. The verb monopolise or monopolize refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge overly high prices. Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry.

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Single-desk marketing in Australia

Wheat

In Australia, the single desk was the monopoly marketing of wheat by the Australian Wheat Board (1939–1999) and its privatised successor, AWB (International) Limited (1999–2008). In this situation, returns from growers were pooled together nationally and the prices averaged by the Board, which covered both domestic and international sales until 1989, when it focused exclusively on exports. In its last year, this was limited further to just bulk exports. [1]

Momentum for change to the export marketing arrangements built up over time, following:

In 1999 Wheat Export Authority was created following passing of amendments to the Wheat Marketing Act 1989.

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.

In October 2007 Wheat Exports Australia was replaced with the Export Wheat Commission.

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.

In July 2008 the Export Wheat Commission was replaced by Wheat Exports Australia.

Wheat Exports Australia (WEA) was established on 1 July 2008, under the Wheat Export Marketing Act 2008. As an Australian Government agency, WEA was established to regulate the export of bulk wheat from Australia through the bulk Wheat Export Accreditation Scheme.

Other products

Until 2016, Western Australia had a monopoly purchaser of ware potatoes, the Potato Marketing Corporation of Western Australia. Other single desks existed in Australia, such as Queensland Sugar Limited, the Australian Barley Board, and dairy single desks in each state, among others.

Western Australia state in Australia

Western Australia is a state occupying the entire western third of Australia. It is bounded by the Indian Ocean to the north and west, and the Southern Ocean to the south, the Northern Territory to the north-east, and South Australia to the south-east. Western Australia is Australia's largest state, with a total land area of 2,529,875 square kilometres, and the second-largest country subdivision in the world, surpassed only by Russia's Sakha Republic. The state has about 2.6 million inhabitants – around 11 percent of the national total – of whom the vast majority live in the south-west corner, 79 per cent of the population living in the Perth area, leaving the remainder of the state sparsely populated.

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 does not receive financial support from the state government. The agency dictates the varieties and volume in the WA potato market.

ABB Grain was Australia's largest agribusiness. Founded in 1939, the company was listed on the Australian Securities Exchange until its takeover by Viterra in 2009. For most of its history, the company focused solely on grain accumulation and marketing, but it eventually expanded its focus to other activities, such as grain receival and storage, malting and fertilisers. ABB bought grain from all growing regions in Australia and traded in all grain commodities.

Single-desk marketing in Canada

The Canadian Wheat Board was Canada's monopoly marketer of wheat and barley grown in the prairie provinces. Its monopoly was removed in 2011, effective August 2012. [2]

See also

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Canadian Wheat Board

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".

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References

  1. "Wheat Export Marketing Amendment Bill 2012", Parliament of Australia. Accessed 12 November 2012
  2. André Magnan (August 3, 2012). "Wheat farmers lose a tool in the winds of change". The Globe and Mail. Retrieved 8 September 2012.