Industry driven and managedGrain Trading Standards • Trade Rules & Contracts • Dispute Resolution • Industry training

AnnuAl RepoRt 2012/13

gta across the supply chain

Publication of Grain Trading Standards

Professional Development Programs

Australian Grain Industry Code of Practice

Specialist workshops – Export Containers/Advisory & Compliance

S U PP O R T E D B Y:

Contract Confirmation (GTA No.3) & Vendor Declarations

Dispute Resolution Services (Arbitration)

Freight Contract Freight ContractStorage and Handling  Contract

G TA H A S C O N T R AC T S A N D S TA N DA R D S T H AT TA K E AU S T R A L I A N G R A I N T O D O M E S T IC A N D E X P O R T M A R K E T S

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Professional Development Programs

Australian Grain Industry Code of Practice AC RO S S T H E E N T I R E S U PPLY C H A I N

National Working Party on Grain Protection (GTA convenor)

Australian Grain Industry Conference (in conjunction with Australian Oilseeds Federation & Pulse Australia)

Dispute Resolution Services (Arbitration)

Track Contract (GTA No.2)

Delivered Container Terminal Contract (GTA No.4)Free on Board Contract (GTA No.1)

Voyage Charterparty – AusGrain 2013

Cost Insurance Freight Contract (GTA No.5)

G TA H A S C O N T R AC T S A N D S TA N DA R D S T H AT TA K E AU S T R A L I A N G R A I N T O D O M E S T IC A N D E X P O R T M A R K E T S

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Upholding the qUality of aUstralian grain – GTa’s conTribuTion

Developed and released the Australian Grain Industry Code of Practice

GTA Trading Standards are aligned to GTA standard form contracts and have widespread domestic & international recognition

Publication of:

– Visual Recognition Standards Guide – a photographic and written national standard of all major grain defects.

– Weed Seed Identification Guide

GTA Trading Standards developed by GTa standards committee, following public consultation which is conducted yearly. The Trading standards are developed with a primary objective to reflect customer requirements.

Industry training

– Developed national competency standards for sampling & testing of grain – approved by national skills standards council

– Conducts the Grain Standards Course nationally to ensure national consistency in grain testing and classification.

Photo supplied by Michael Wood

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Wheat Quality Australia – a joint venture with Grains Research & Development Corporation (GRDC), tasked with wheat variety classification and development of the Wheat Varietal Master List that is integral to the GTA Milling Wheat Trading Standards.

Submissions to:

– CODEX Alimentarius Commission – international food standards

– Australian Pesticide & Veterinary Medicines Authority

– DAFF Biosecurity on phytosanitary and trade related matters

Supports the work of the National Residue Survey – adherence to domestic and export Maximum Residue Limits for chemicals. It is the intention that participation in the NRS will be mandatory for GTA members who conduct storage & handling operations from 1 July 2014.

Member:

– DaFF biosecurity – Grains & plant products Export industry advisory committee

– Grains national research, Development & Extension strategy

– national Measurement institute – Grain Quality Measurement committee

– agricultural biotechnology council of australia

National Working Party on Grain Protection (GTa secretariat), ensuring australia’s zero tolerance to live grain insects.

publication of nationally recognised sampling & testing reference methods for all major grain types

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grain trade aUstralia KEy aTTribuTEs

Making it easier standardising grain quality specifications, contracts and trade rules enables smooth facilitation of trade within the australian grain industry, backed by a rigorous and cost effective Dispute resolution service.

Strategic Direction in July of each year, the GTa board releases the GTa strategic Direction following widespread industry consultation. strategic Direction is prepared for members and others with an interest in the australian grain industry and details the short to medium strategies and GTa’s longer term vision for the australian grain supply chain.

Available to all GTA membership is open to any individual, company or organisation actively involved in the grain industry or in the supply of services to the grain industry.

Informing industry GTA provides information to enable industry players to stay abreast of the latest trade tools through regular updates, educational programs and representation in domestic and global industry/government circles.

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Photo supplied by Vicki Krake

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Industry OutcomesThe goal of GTA is to create an operating environment for the commercial grain industry that is efficient, effective and transparent. These attributes provide the foundation for the Australian value chain and its members to participate in the growth of the global grains industry.

The following reflect the industry outcomes that GTA delivers /seeks to influence through its activities:

y Harmonised and cooperative commercial trading environment – a common and clear commercial focus reflecting the needs of the industry.

y A well informed industry – decisions based on sound research and industry acceptance.

y A better skilled industry – operating at best practice.

y Access to effective “trade facilitation” tools and processes.

y Enhanced innovation and leadership – where new ideas and challenges are welcomed, discussed openly, and advanced as appropriate.

y An industry responsible for itself (industry stewardship and management) – self reliant, but achieves Government support where common good outcomes are justified and necessary.

Critical Success Factors

For GTA to achieve the outcomes above, it needs to deliver:

y Harmonised trading products and services – so that trading risks are lowered, capital is attracted, and transparency is enhanced.

y Suite of tools to enable trade to occur efficiently and seamlessly – low cost transactions are critical to maintain global value chain competitiveness.

y Professional development program that enhances the skills of industry participants – other industries and countries are competing for skilled human resources; GTA must deliver programs to “grow our own”.

y Knowledge sharing – communicating the grain industry and GTA vision is critical to garnering the support required for growth.

y Funds and Resources for GTA to deliver the outcomes – growth in industry services and communication must be met by increases in GTA funding and revenue streams. GTA has to demonstrate a solid benefit proposition to members and the broader grain supply chain to ensure ongoing support and growth.

y Partnerships/linkages with industry stakeholders, Government and agencies, and international counterparts – members alone cannot fund the entire service load. Partnering will be an important component of success.

This Annual Report details the activities that GTA has pursued to ensure that these industry outcomes are achieved.

GTA must demonstrate a solid benefit proposition to members and the broader grain supply chain to ensure ongoing support and growth.

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contents

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Position of GTA within the Grain Industry .............................................. 2

Vision ...................................................................................................................... 3

Mission .................................................................................................................... 3

Our Members ......................................................................................................... 3

Our Values .............................................................................................................. 3

GTA’s Role ............................................................................................................... 3

Core activities ......................................................................................................... 3

Key operational principles ..................................................................................... 4

Review of GTA services and products .................................................................. 5

Policies ..................................................................................................................... 5

Royal Flying Doctor Service – GTA’s corporate charity...................................... 5

Highlights of 2012/13 ...................................................................................... 6

Chairman’s Report ..........................................................................................10

GTA Board ..........................................................................................................16

Director retirements and appointments ...........................................................19

Trade facilitation – The core tasks ............................................................20

GTA Technical Committees ................................................................................21

Charter for the GTA Technical Committees ......................................................21

Key points of the GTA Technical Committees ..................................................21

Inclusion of an anti-competitive clause .............................................................21

Commerce Committee .........................................................................................23

Standards Committee ..........................................................................................26

Trade & Market Access Committee ....................................................................28

Transport, Storage & Ports Committee .............................................................29

Dispute Resolution Service .................................................................................30

GTA Board Approved Arbitrators...............................................................34

GTA Board approved Tribunal Chairman (export contracts) ...........35

GTA Professional Development Program ................................................36

Industry Support Services conducted by GTA ........................................38

Wheat Quality Australia ......................................................................................39

Australian Grain Industry Discussion Group ....................................................40

National Working Party on Grain Protection ...................................................40

Australian Grain Industry Code of Practice .......................................................41

Australian Grain Industry Conference 2012 .....................................................42

Port Access Code of Conduct ..............................................................................43

Advocacy .............................................................................................................44

Communications ..............................................................................................46

Financial Performance and Position (extract) ......................................48

Members .............................................................................................................54

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position of gta within ThE Grain inDusTry

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VISION

An efficient, equitable and open commercial grain industry in Australia.

MISSION

To facilitate trade by providing products, services and advocacy for the Australian grain value chain.

Adherence to these statements ensures that GTA remains focussed on its core task of trade facilitation.

OuR MEMbERS

GTA members are responsible for over 95% of all grain storage and freight movements made each year in Australia. Over 95% of the grain contracts executed in Australia each year refer to GTA grain standards and/or trade rules.

GTA members are drawn from all sectors of the grain value chain from production to domestic end users and exporters. GTA members are involved in grain trading activities, grain storage, human and stock feed milling.

GTA also attracts membership from organisations to the side of the value chain in related commercial activities such as financial (banking, stock exchanges etc), communications, grain advisory services, and professional services (e.g. solicitors and accountants).

OuR VAluES

y GTA will continually reassess its position in the Australian grain value chain ensuring a contemporary approach to fulfilling its vision. Leadership and innovation will be key features of the manner in which GTA will conduct its operations.

y GTA is committed to delivering products and services that add value to our members’ businesses and harmonise standards associated with facilitation of trade.

y GTA will work cooperatively with all parts of the grain value chain and service all grain value chain members.

y GTA will build effective relationships with our members and stakeholders.

GTA’S ROlE

The role of GTA spans three key areas:

y Trade Services and Products – harmonise trading rules and contracts that ensure an efficient, equitable and transparent trading environment.

y leadership & Innovation – industry and government are increasingly looking to GTA as an impartial organisation to assume stewardship of various grain related activities/functions.

GTA will:

– develop partnerships, linkages and alliances across the domestic and international supply chain.

– provide government and its related agencies with impartial advice in the development and implementation of grain industry policies.

– demonstrate industry leadership by assuming roles as identified by members and the broader grains industry.

y Communication – keep members and the broader industry informed. Strengthen and promote GTA reputation through corporate, member and external communications.

CORE ACTIVITIES

The cornerstone functions of GTA are the provision of services and products (core activities) to “facilitate trade” and include:

y Grain trading standards

y Contracts and trade rules

y Dispute Resolution Service

y Professional development programs (grain industry specific)

Since 2008, GTA has been expanding its services and products to meet the needs of an industry proud of its ability to develop and implement a self regulatory approach to grain industry policy setting and processes.

This approach is supported and demanded by GTA members, industry stakeholders, government and its related agencies.

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As well as enshrining our core activities, Strategic Direction 2013 details:

y Industry support services – services where GTA is able to add value to a GTA members business by engaging in activities such as advocacy to government and related commercial organisations on issues that have broad industry agreement.

GTA will only provide industry support services where there is widespread member support. Industry support services will not advantage or disadvantage the commercial positions of any one industry sector or commercial organisation over another.

y Industry support products such as the GTA professional development program, which will become the only tertiary qualified grain specific qualification in Australia.

KEy OPERATIONAl PRINCIPlES

GTA is a not for profit entity, however its members operate in a commercial, competitive environment responsive to market conditions.

GTA will also operate to commercial principles with particular attention to:

Financial policy/cash reserves

y adequate cash reserves will be maintained to conduct the operation of the business and complete the objectives detailed in this and subsequent Strategic Directions. GTA will maintain cash reserves equivalent to 75% of the budgeted expenses in any one year.

y membership fees will fund ‘trade facilitation “ services & products i.e. the GTA secretariat and Technical Committees; and

y all industry support products will be offered to members at a fee that will encourage participation but which also reflects a reasonable return on funds invested by the broader membership.

Dispute Resolution Service

y Parties utilising the Dispute Resolution Service (DRS) must cover all the inherent costs associated with conducting arbitration

without cross subsidisation from other GTA revenue streams. Aligned to this principle must be the commercial reality that the GTA DRS must be competitive to other forms of dispute resolution, particularly court proceedings.

Professional Development Program

y The GTA Professional Development Program is a key product offered by GTA to the grain industry. Course fees will be priced, such that:

– Industry participation in courses is encouraged;

– they reflect a reasonable return on the funds invested to develop the course and associated resources; and

– GTA receives a clear indication from members of market acceptance of the course(s).

Resourcing

GTA will recruit staff:

y To full time roles which are directly related to the management of core functions

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y under contract where there is a variable revenue stream such as delivery of a Professional Development Program(s) or the provision of legal technical support to the Dispute Resolution Service.

REVIEW OF GTA SERVICES AND PRODuCTS

GTA will continually review the products & services that allow “trade facilitation” to ensure they reflect the commercial grain trading environment. The development process must be transparent with all individuals/organisations that have a vested interest in the grain supply chain able to contribute via written submission.

The general process is:

1. Call to industry for submissions on a particular topic.

2. Committee consider all submissions from members and non- members.

3. Explanatory memorandum published and draft commercial resources published.

4. If necessary calls for further submissions.

5. Repeat point 2 etc.

6. When the Committee reaches a consensus, a recommendation is made to the Board to gazette the commercial resources be they a grain trading standard, a contract or the Rules (Trade or Dispute Resolution).

POlICIES

External policies

External Policies detail various aspects of how GTA Committees will operate in regards to various trade related processes. Publication of External Policies will ensure that industry participants have access to the manner in which GTA Committees and ultimately the GTA Board arrive at various positions.

Internal policies (occupational, health & safety)

Internal policies detail policies relating to the employment of staff and associated

working conditions. These policies are formally updated on a staggered basis every two years, or as required.

Standard Operating Procedures

Standard Operating Procedures detail the manner in which GTA will conduct certain internal processes and are reviewed yearly.

ROyAl FlyING DOCTOR SERVICE – GTA’S CORPORATE CHARITy

GTA has selected the Royal Flying Doctor Service as its corporate charity. Funds directed to speaker gifts at the Australian Grain Industry Conference and the Advisory & Compliance Workshop are donated to the RFDS in lieu of speaker gifts.

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highlights of 2012/13

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TRADE FACIlITATION PRODuCTS AND SERVICES

Commerce Committee

Released:

✓ GTA AusGrain 2013 Voyage Charter Party

✓ The methodology to determine GTA Location Differentials on the East Coast of Australia has been set for a minimum of 3 years.

Reviewed:

✓ GTA Contract No. 4 – DCT Contract;

✓ Industry consultation – performance of the track market/track contract

Reviewing:

✓ GTA Commodity Vendor Declaration

Developing:

✓ Cost & Freight (CFR) Contract

Standards Committee

Reviewed:

✓ 2013/14 GTA Trading Standards

✓ Visual Recognition Standards Guide, to include:

– Wheat/Barley/Sorghum/Oats/Canola/Chickpeas/Feed maize/Lupins/Red Lentils

Released:

✓ New Oats Standards Booklet to add to the existing Wheat, Barley, Sorghum, Maize, Triticale and Cereal Rye.

✓ Submissions to CODEX Australia. Reviewed 22 discussion papers and placed submissions as follows:

– Aflatoxins in Cereals

– Maximum Levels For Deoxynivalenol In Cereals

– Maximum Levels of Lead in Cereals

Transport, Storage & Ports Committee

✓ Export Container Forum – May 2013 – Melbourne – 160 in attendance

✓ DCT Contract re Importing Countries Permits

Provide guidance on:

✓ Location Differentials

✓ export based contracts

✓ AGI Code of Practice and Technical Guidance Documents

Trade & Market Access Committee

Consult with and advise industry & Government on:

✓ global Low Level Presence Policies

✓ Biosafety Protocol

✓ Proposed International Standard for Phytosanitary Measures

✓ Trans Pacific Partnership Trade Agreement

Formed:

✓ GM Wheat Advisory Group to develop GM wheat supply chain protocol to circumvent detection/escape of GM wheat during development phase within Australia.

STRATEGIC DIRECTION

Publication of

✓ GTA Strategic Direction 2012

✓ Funding Post Farm-Gate Grain Industry Development Functions

✓ Australian Grain Industry Code of Practice

VITAl SIGNS

Financial Performance

✓ Profit of $248,843

✓ Equity of $976,597

✓ GTA operating within cash reserves policy

✓ Membership fees fund core activities, i.e. Technical Committees

✓ All activities conducted

as profit centres

Membership

✓ Increased from 250 at 1 July 2012 to 261 at 30 June 2013

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Submissions to Australian Pesticide and Veterinary Medicines Authority (APVMA):

✓ Trinexapac-ethyl in the Moddus Evo Yield & Quality Enhancer in relation to cereal exports

✓ Sulfoxaflor in the Insecticide Transform in relation to cotton seed exports

Submissions to DAFF

✓ FAO Low Level Presence (LLP) questionnaire

✓ Low-Level Presence (LLP) Risk Management Policies for Transboundary Movements of Grains and Grain Products for Food, Feed or Processing

Submissions to DAFF biosecurity

✓ Vol. 12 Plant Export Operating Manual

Dispute Resolution Service

✓ 18 arbitrations finalised as follows:

– 8 awards released

– 8 matters commercial settled prior to a Tribunal making a determination

– 2 matters settled by way of external resolution to GTA (i.e. Court)

✓ 83 Board Approved Arbitrators

✓ 7 Board Approved Tribunal Chairman (Export Contracts)

GTA Professional Development Program

✓ 357 participants attended a GTA PDP course or workshop

✓ 8 subjects offered to members and the broader industry

✓ 27 courses conducted nation wide

✓ National Skills Standards Council (NSSC) endorsed GTA developed competency standard – AHCBAC304A – Test grains/seeds on receival

INDuSTRy SuPPORT SERVICES CONDuCTED by GTA

National Working Party on Grain Protection

✓ Continued administrative support to activities of the NWPGP and sub-committees

✓ Support in planning and hosting of the June 2013 two day annual meeting.

✓ Lead and direct the resolution of agreed outcomes from the 2013 meeting with an emphasis on;

– ongoing education and more effective communication

– Wider industry involvement along the supply chain

– A focus on meeting market requirements relating to chemical use

– Continued evolution of NWPGP activities to enhance and link in with existing structures within the industry especially the GRDC and CRC for National Plant Biosecurity .

✓ Publication of:

– Phosphine Strategy

– Australian Grains Industry Post Harvest Chemical Usage Recommendations and Outturn Tolerances 2013/14

Submissions (general)

✓ Senate Standing Committee on Rural Affairs and Transport – Inquiry into the ownership arrangements of grain handling.

Service functions to industry

✓ Convenor – Foodbank Grain Industry Consultative Group

✓ Convenor – Australian Grain Industry Discussion Group

✓ Convenor – Port Access Code of Conduct Advisory Committee

✓ Released Australian Grain Industry Code of Practice

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Advocacy

Domestic

✓ DAFF Biosecurity – export inspection & certification processes

✓ Dept of Foreign Affairs & Trade – trade & market access

✓ Dept of Agriculture, Fisheries & Forestry (DAFF) – domestic issues

International

✓ International Grain Trade Coalition

– Low Level Presence policies

– Draft standard on the International Movement of Grain

Member

✓ DAFF Biosecurity Grains Industry Consultative Committee

✓ Grains Research Development & Extension Strategy

✓ Agricultural Biotechnology Council of Australia

✓ National Measurement Institute – Grain Quality Measurements Committee

Presentations (GTA website)

Domestic

✓ Numerous stakeholder briefings to members, broader industry, government and their related agencies (GTA CEO)

✓ Australian Grain Industry Conference (July 2012) Opening address (GTA Chairman)

✓ Maritime Lawyers Association of Australia and New Zealand (April 2013) “Grain Exports – a legal update” (GTA CEO)

✓ National Working Party on Grain Protection (NWPGP) (June 2013) – Opening address (GTA Chairman)

✓ Export Container Forum (May 2013)

– Opening address (Chair, GTA Transport, Storage & Ports Committee)

– New export inspection & certification arrangements for grains (GTA CEO)

– GTA – supporting the grain export container industry (GTA CEO)

International

✓ International Grain Council Conference, London (June 2013) “Australian Wheat – A Quality Product in a Deregulated Market” (GTA CEO)

Industry briefing documents (GTA website)

✓ Brokers and Agents in the Australian Grain Industry – June 2013

✓ Test Weight and Milling Wheat – June 2013

✓ Standards for Food Quality Shipping Containers (Shipping Australia Limited) – May 2013

✓ EU Renewable Energy Directive (RED) Scheme – Update – July 2012

INDuSTRy SuPPORT PRODuCTS OFFERED by GTA

Conference/Forums

✓ Conference convenor for the 2012 Australian Grains Industry Conference – 950 participants

✓ GTA Advisory & Compliance Workshop

✓ GTA Export Container Forum

✓ Hosted the two day NWPGP Annual Forum in Melbourne

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chairman’s rEporT

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Over recent years, the Australian grain production sector has displayed a remarkable ability to manage challenging environmental conditions to produce record tonnages utilising the latest technology, much of it developed in Australia.

This production activity has been backed with record bulk shipping programs and a large expansion of tonnes being exported in containers, particularly wheat. A critical aspect of the growth in containers exports has been the investment in infrastructure, much of it in regional locations. Over the same time there has also been a number of additional bulk export terminals commissioned or under construction.

The Australian grain industry continues to be a focus of commodity and investment markets and the past year has seen further consolidation and foreign investment across the industry.

For Australia to continue to effectively compete in the changing global grains industry it is critical, that there are supply chain processes that ensure delivery of a quality product to the customer, in Australia or overseas.

On behalf of its members and to the benefit of the broader grains industry, GTA has played a key role in helping to facilitate trade during this period of substantial and ongoing change in the Australian grains industry.

Our vision is an efficient, equitable and open commercial grains industry and GTA contributes to this by providing products, services and advocacy that support the facilitation of trade.

During 2012/13 GTA continued to strongly deliver against its core activities of; Trading Standards, Trade Rules, Contracts, Dispute Resolution and Professional Development. These activities were driven by the excellent work by our Technical Committees covering Commerce, Grain Standards, Trade and Market Access and Transport, Storage and Ports.

During Rob Parkes absence this year, I had the privilege of Chairing the Grain Standards Committee and this experience clearly showed me the great strength of the committees and how they develop outcomes by bringing together relevant expertise from across the grains industry value chain. I would like to thank Matt Rutter, John Orr and Mitch Morison for their contributions as Chairs of these committees.

Grain industry involvement in trade & market access initiatives has increased significantly in recent years, an outcome appreciated by Government.

The outcomes of these Committees during 2012/13 are detailed in this Annual Report. One of the outcomes from the Standards Committee that has received considerable publicity was the change in the Milling Wheat Test Weight Standard from 74 to 76kg/hl.

This policy change was announced in 2010 to provide sufficient industry notice. GTA prepared an industry briefing paper on the issue which was made available on the GTA website.

The test weight move to 76 kg/hl not only better reflects customer requirements but, as an additional benefit, demonstrates to world markets a higher quality attribute for test weight than was promoted by the previous Standard. It was very pleasing to see the response of industry including the Bulk Handlers who have advised that they will receive grain at 74-75kg/hl and will outturn at the new trading standard of 76kg/hl. As mentioned by a CBH representative in a recent press article; “It is a win-win situation for both growers and marketers”.

The importance of grain industry participation in trade and market access activities was amply demonstrated by the removal of import restrictions on Australian canola into China. This was achieved by a joint effort between the Grain Industry Market Access Forum and AOF working in conjunction with DAFF Biosecurity. Grain industry involvement in trade & market access initiatives has increased significantly in recent years, an outcome appreciated by Government.

With regards to grain contracts, over the last 12 months, GTA has supported members who export product from Australia by:

1. revising the Delivered Container Terminal (DCT) Contract;

2. commenced development of a Cost and Freight (CFR) contract; and

3. released AusGrain 2013, a Charterparty for bulk grain shipments.

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We are particularly proud of our commitment to support the career development of staff in the Australian grains industry. During 2012/13, as part of the GTA Professional Development Program, GTA reviewed all 7 courses we now offer. During 2013/2014 GTA will seek aggregation of these courses into a Diploma in Grain Marketing.

Ensuring consistency of product across Australia requires a standardised assessment process. This coming year, GTA intends to develop an industry wide accreditation program for grain sampling and testing operators. This program comes to fruition with the approval by the National Skills Standards Council of competency standards developed by the GTA Standards Committee.

Administration and adherence to courses that are commercially aligned would be enhanced if GTA was to have total control over the management and awarding of course credentials. Accordingly, GTA during 2013/2014 will determine the feasibility of becoming a Registered Training Organisation.

GTA remains committed to our core activities being development of; grain trading standards, contracts and trade rules and professional development programs. These activities are reviewed each year to ensure they reflect the contemporary nature of the grain trading environment in Australia.

I would now like to briefly highlight progress in the area of Industry Support Services.

Processes such as varietal testing and classification, development of trading standards, chemical use and tolerances, government export certification and contractual integrity, to name a few are well understood within the industry. However, GTA believes that the industry would be well supported by one comprehensive document that detailed all these key processes as it would demonstrate to all sections of the industry, government, as well as national and international customers of Australian grain, that the Australian industry has the capability to consistently deliver a quality product.

Following 18 months of industry consultation GTA has released the Australian Grain Industry Code of Practice. The Code supersedes the Code of Conduct originally developed as part of the wheat export deregulation process and is a demonstration of an industry that is committed to self-regulation.

GTA’s primary task is “to facilitate trade”

The original Code detailed sound industry practices but was not prescriptive in nature. This Code of Practice is prescriptive and includes Technical Guidance Documents to assist industry participants to adhere to the

requirements. Sections of particular note include provisions for handling complaints against Code adherents and protocols for grain pool providers.

Importantly, it is the intention of the GTA Board that adherence to the Code will be mandatory for all GTA Ordinary or post farm gate members from 1 July 2014. Organisations that are not members of GTA will be encouraged to become Code signatories.

Last financial year, GTA announced two cross sector/ cross commodity initiatives. One of these initiatives was to convene a Grains Industry Discussion Group made up of not for profit grain sector organisations. Formation of the Group will provide an effective forum to discuss cross-industry issues and enable development of consensus positions on industry wide policy development.

One of the first activities of the Group will be to address the funding of Grain Industry Development Functions also known as Industry Good Functions. GTA released an industry discussion document on this subject in 2012 and the resulting feedback from that document will be useful as the Discussion Group develop a proposal for industry consideration.

With regard to the regulatory environment, the Wheat Export Marketing Amendment Bill 2012 was passed in November 2012. Amendments to the Bill now require that the Code of Conduct for Port Access that was being

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The importance of communication is recognised by all. The GTA Board has just adopted a Communications Strategy that will see significantly increased activity including, increased briefings with members, government and the broader grains industry. Social media is part of the Strategy and you would aware of GTA’s increasing utilisation of twitter.

The critical metrics for the health of GTA are memberships and financial capacity. It is pleasing to report that on both accounts, GTA is in an enviable position.

Membership has continued to increase with 261 members as at 30 June 2013 (250 FY12).

Financially, GTA operates a prudent financial policy that requires that 75% of  the previous year’s expenses must be held as retained earnings. GTA is operating well within this ratio as a result of this year’s profit of $282,409 with retained earnings of $976,597.

This policy ensures that the member’s financial contributions to GTA are protected and enables the Board to confidently commit financial resources to activities and projects that enable members to better conduct their commercial operations. Examples include the development of new and review of existing professional development programs as well as submissions and briefing papers on trade and market access initiatives to government.

developed by industry now becomes a mandatory prescribed Code that will be administered by the Australian Consumer & Competition Commission. The Code Development Advisory Committee has forwarded guidelines that identify key issues they believe need to be addressed in the Code and we now await the release of a draft Code from Government. It is hoped that the Code will be released in the second quarter of 2013/2014 otherwise Port Terminal Operators may have to resubmit their Port Terminal Access Undertakings which will negate the flexibility that exporters and Port Terminal Operators were seeking.

The buyers of Australian grain have a zero tolerance to live grain insects. The base that allows this to occur is built

on the outcomes and deliberations of the National Working Party on Grain Protection (NWPGP). This organisation is responsible for providing management and leadership in the areas of post-harvest storage, chemical use, market requirements and chemical regulations. The reputation of Australian grain would be substantially diminished without the leadership provided by the NWPGP. GTA is committed to continue its secretariat activities associated with the conduct of the NWPGP.

GTA intends to develop an industry wide accreditation program for grain sampling and testing operators

100

160

230

130

200

270

110

170

240

140

210

120

190

260

150

220

MEMBERSHIPS AS AT 30 JUNE

2004 2005 2006 20092007 2010 20122008 2011 2013

Photo supplied by Brad Jones

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The last 12 months saw the retirement of GTA Directors Chris Kelly and Tom Keene, both of whom acted as Chairman of the organisation. Chris Kelly was the first Chairman of the restructured GTA or NACMA as it was known in 2003. The Board under Chris’s guidance made major changes to the Constitution which resulted in expanded membership and with perceptive foresight enshrined a non-political agenda within the organisation.

Tom Keene was well known through industry when he became GTA’s first independent Chairman in 2009. Tom’s even handed approach and solid adherence to process ensured the further development of strategies within GTA that “facilitate trade”. Implementation of the Professional Development Program was a notable achievement during Tom’s tenure.

Helen Harvey also retired as Director after three years and the Board will miss her sound industry knowledge and considered comments. Greg Carroll from Marrar NSW joined the Board last October.

As Chairman, it is pleasing that industry personnel are willing to act in various capacities be that as a Director, a Committee member or an arbitrator. On behalf of the Board, I thank them for their commitment and contribution.

I would also like to acknowledge and thank Directors that are retiring at this AGM. John Orr, Phil Holmes and Geoff Nalder have all been strong contributors to the Board and on behalf of the Board and the grains industry I thank them for the time and effort they have devoted to GTA.

GTA, originally established in 1991 as the National Agricultural Commodity Marketing Association (NACMA), over the years has changed its legal structure, constitution and Board composition. The changes that have occurred have ensured that GTA has retained and enhanced its relevancy in a grain industry that has undergone substantial changes in recent years.

During 2013/2014, the Corporate Governance Committee, a Board subcommittee, will review the current Constitution and board structure with proposed changes, if any, to be put to the members at the 2014 AGM.

I would like to digress from the challenges and opportunities faced by our industry to the challenges faced by over 2.3 million Australians who are facing personal crisis and highlight a key undertaking to be initiated by the Australian grains industry in 2013/2014

Foodbank is Australia’s largest food relief organisation but doesn’t have enough food to meet existing demand. There is a need for healthy grain based foods and that’s where the Australian grain industry, as a collective, comes in.

GTA in conjunction with Foodbank, has formed a Grain Industry Consultative Group who have been tasked with introducing a cross industry program to accumulate 3,000 tonnes of grain per year. Food processors are donating their factory time to process the grain into between 20 to 30 million meals depending on its use.

GTA believes the target is achievable and will be a world leading testament to the generosity of spirit that exists within the Australian grain industry. GTA will circulate information on how your organisation can participate in the program.

In conclusion, GTA must continue to offer a sound value proposition to members to ensure their ongoing support. The Board believes that the key initiatives outlined above, operating within a sound financial and governance environment, ensures your organisation will achieve its key deliverable – to facilitate trade across the Australian supply chain.

Peter Reading Chairman

Photo supplied by Viterra Limited

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gta boarD

Photo supplied by Roger Vater

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DIRECTORS

Thomas Keene Resigned 26 October 2012

Peter Reading Appointed 27 August 2012

Qualifications B.Sc. (Hons) Agricultural Science, University of Sydney,

Experience Former Managing Director of GRDC, GrainPool WA. Currently Independent Director of Batlow Apples Co‑Op. Executive Chairman, Canola Breeders. Consultant to Aust Govt – Wheat Market Information

Category Nomination Special Qualifications – Board appointment

Special responsibilities GTA Board Chairman Chairman – Governance Committee & Standards Committee Member – Audit & Finance Committee

Robert Parkes

Qualifications Bachelor of Rural Science (Hons.) UNE, Graduate Diploma in Business Studies – UNE

Experience General Manager – Quality and Technical Ridley AgriProducts Pty Ltd. Former Technical Services Manager Quality Ridley AgriProducts Pty Ltd 2000‑2004, President – Stockfeed Manufacturers’ Association of Victoria (SFMAV ) 2002‑Current, President Stockfeed Manufacturers’ Council of Australia (SFMCA ) – Current, technical representative for SFMAV & SFMCA.

Category Nomination Ordinary Level B

Special responsibilities Chairman – GTA Standards Committee

Christopher Kelly Resigned 26 October 2012

Geoffrey E Farnsworth

Qualifications Bachelor of Law, Bachelor of Arts

Experience Principal Macpherson + Kelley Lawyers

Category Nomination Special Qualifications – Board appointment

Special responsibilities Chairman – GTA Dispute Resolution Service Committee & Membership Committee Member – Commerce Committee & Governance Committee, Legal Counsel to Grain Trade Australia Ltd

Allan N Johns

Qualifications Bachelor of Commerce UNSW (Marketing), Master of Commerce UNSW (Econometrics), Master of Business UTS (Banking and Finance)

Experience Chief Development Officer, Graincorp Limited, Director – Allied Mills, Queensland Commodity Exports

Category Nomination Ordinary Level A

Special responsibilities Chairman – Business Development Committee

Malcolm Finlayson

Qualifications Bachelor of Business Studies, MBA, Member of CPA Australia

Experience Director – Finesse Solutions Pty Ltd, Director – Pentag Nidera Pty Ltd & Plant Health Aust, fmr Director and CFO – Jossco Group, fmr CFO – DR Johnston Group

Category Nomination Special Qualifications – Board appointment

Special responsibilities Chairman – Audit & Finance Committee Member – Business Development Committee

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Philip A Holmes

Experience Managing Director PAH Consulting Pty Ltd 2008‑present. Former Managing Director FarMarCo Australia Pty Ltd 1986‑2008, Marketing Manager Elders/QGGA Grain Ltd 1984‑1986, Marketing Manager QGGA 1978‑1986. Treasurer and Management Committee member Queensland Agricultural Merchants 2004‑2010

Category Nomination Merchant Association

Special responsibilities Chair – Commerce Committee

Member – Dispute Resolution Service Committee

John B Orr

Qualifications Associate Diploma in Agriculture, Bachelor of Business Degree, Post Graduate Diploma in Business, Master of Business Administration

Experience Principal, Premium Grain Handlers, WA, Involved with the Western Australian grain trade for many years, previously Chairman of NACMA WA, Interests in Premium Grain Handlers, a container packing and grain trading operation based in Fremantle, Thompson & Redwood Stockfeeds, Bio John Animal Health and Lovett’s, a birdseed business based in Victoria.

Category Nomination Merchant Association

Special responsibilities Chair – Transport, Storage & Ports Committee Member – Business Development Committee

Geoffrey L Nalder

Experience Manages a 10,000 acre family dry land cropping enterprise at Swan Hill in Victoria, Extensive experience as an advocate for production sector organisations both at a state and national level, Chair of the Victorian Farmer’s Federation Grains Group

Category Nomination Special Qualifications – Board appointment

Special responsibilities Member – Membership Committee

Helen M Harvey Resigned 24 April 2013

Mitchell Morison Appointed 25 October 2011

Qualifications Bachelor of Science (Agriculture) from the University of Western Australia, Postgraduate Diploma in Agricultural Economics from the University of New England

Experience Managed the transformation of AWB’s grains related business activities from the regulated ‘Single Desk’ wheat export operation into the largest national farm‑gate originator, supply chain manager and exporter of Australian grains during the early years of export wheat market de‑regulation. Was also responsible for managing AWB’s trading activities in Geneva, Ukraine and India. Held a range of AWB & industry related company directorships including Pulse Australia, Australian Wool Handlers and AWB GrainFlow and has travelled extensively across the Middle East and the Asian region to engage with buyers of Australian agricultural commodities

Category Nomination Ordinary Level A

Special responsibilities Chair – Trade & Market Access Committee

Matthew Rutter Appointed 25 October 2011

Qualifications Graduate Diploma in Applied Finance & Investment Bachelor in Business with First Class Honours

Experience General Manager – Origination, Gavilon Grain Aust P/L Frmly Head of Trading – CBH Grain Pty Ltd, Frmly Marketing Manager, Wheat & Canola – Grain Pool Pty Ltd & Marketing Officer, Wheat & Canola – Grain Pool Pty Ltd

Category Nomination Ordinary Level B

Special responsibilities Chair – Commerce Committee Member – Membership Committee & Dispute Resolution Service Committee

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RETIREMENTS

GTA remains in a strong financial and membership position. This position is as a result of the governance provided by members of the Board. The last 12 months saw the retirement of GTA Directors Chris Kelly and Tom Keene, both of whom acted as Chairman of the organisation.

Chris Kelly was the first Chairman of the restructured GTA or NACMA as it was known in 2003. The Board under Chris’s guidance made major changes to the Constitution which resulted in expanded membership and with perceptive foresight enshrined a non-political agenda within the organisation.

Michael Wood Appointed 25 October 2011

Qualifications Diploma – Applied Science (Agriculture)

Experience Trading and Logistics Manager, Rural Logic (Australia). Active member of the Australian Grains Industry for over 20 years. Founding Manager in 1990 of Stockfeed Company James & Son (Australia) – established successful operations in Victoria, Tasmania, South Australia and Argentina. Other grain industry roles – ABB Victorian State Manager for 5 years and Grains Manager for International Malting Company in 2005‑06. Active committee member of GIAV since 2006 and currently President

Category Nomination Merchant Association

Special responsibilities Member – Membership Committee & Governance Committee

Gregory Carroll Appointed 23 October 2012

Experience Managing Director & Shareholder – M C Croker Pty Ltd Farm Manager – family farming enterprise, Ganmain Former RMSA executive & representative on NACMA committee, committee member of Pulse (NSW)

Category Nomination Ordinary Level C

Special responsibilities Member – Audit & Finance Committee

Geoff Honey Company Secretary – appointed 23 June 2003

Qualifications Diploma in Applied Science (Agriculture), Diploma in Education, Certificate in Dispute Resolution, MAICD

Experience GTA CEO & Company Secretary since 2003, Manager Agricultural Risk Management Services 1999‑2003, Team Leader, World Bank Sheep & Wool Marketing Project, Kyrgyzstan, 1999.

Former member Ministerial Wheat Industry Expert Group, Director Wheat Quality Australia and Chairman of the Grain Ministerial Export Certification Reform Program.

Current member: DAFF Biosecurity Grains Industry Consultative Committee, Grains Research, Development & Extension Strategy, Agricultural Biotechnology Council of Australia.

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Tom Keene was well known through industry when he became GTA’s first independent Chairman in 2009. Tom’s even handed approach and solid adherence to process ensured the further development of strategies within GTA that “facilitate trade”. Implementation of the enhanced governance processes and completion of the Professional Development Strategy were notable achievements during Tom’s tenure.

Helen Harvey also retired as Director after three years and the Board will miss her sound industry knowledge and considered comments.

APPOINTMENTS

Greg Carroll from Marrar NSW joined the Board at the AGM held in October 2012. Greg was appointed as Director in the Category of Ordinary Level C. Greg is the Managing Director and principal shareholder in MC Croker Pty Ltd and Conqueror Milling, both organisations based in the Riverina region of NSW. He has held positions on the Boards of the Rural Marketing Supply Association (now Grain NSW) and NACMA.

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trade facilitation ThE corE TasKs

Photo supplied by Alice Smyth

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GTA TECHNICAl COMMITTEES

GTA operated the following Technical Committees:

1. Commerce Committee

2. Standards Committee

3. Trade & Market Access Committee

4. Transport, Storage & Ports Committee

CHARTER FOR THE GTA TECHNICAl COMMITTEES

The Charter of the GTA Technical Committees is composed of:

1. Common section which contains issues common to all Committees;

2. Terms of Reference for each Technical Committee; and

3. Confidentiality Agreement.

The Charter gives added clarity to the size of the Committees and clearly states that membership will be merit based. Accordingly;

y the number of Committee Members has been capped, though this can be varied with the recommendation to the GTA Board by the Committee Chairman; and

y all Committee Members will be appointed based on their technical skill in the relevant field.

Further information:

y Charter of the GTA Technical Committees is on the GTA website

INCluSION OF AN ANTI-COMPETITIVE ClAuSE

The following clause is inserted at the top of all Committee agendas as a reminder to Committee Members of their obligations.

Anti-competitive clause

Members of the Grain Trade Australia GTA Technical Committees agree to participate in this meeting to consider issues relating to the core activities of the Committee which are detailed in the meeting agenda and other agenda items as agreed by the Committee. Committee Members will participate on the understanding they will represent the best interests of all GTA Members and the broader grain supply chain.

Committee Members do not represent their respective companies or industry organisations and recognise and will comply with their respective obligations under the Competition and Consumers Act 2012.

Accordingly, the meeting will not (and must not) involve any conduct by words or actions which intentionally or unintentionally lessen competition in the broader grain supply chain. This may include discussion of competitively sensitive information including prices, customers, tenders, suppliers, markets, capacity or output.

KEy POINTS OF THE GTA TECHNICAl COMMITTEES

y GTA is reliant on the Technical Committees to review and develop the GTA commercial resources. GTA Technical Committees are skills based committees.

y The Committee structure allows Members to raise issues that impact on their commercial operations and lead to industry consensus on contracts/trade rules and grain standards in particular.

y GTA calls for nominations to the various Technical Committees each year and the GTA Board select Committee Members based on the applicant’s technical competency whilst mindful that the relevant Committee must strive to have representation from:

– sectors across the grain supply chain affected by the decisions of the Committee;

– large and small organisations; and

– all major grain production/trading states.

y All Committees are chaired by a GTA Board Member.

y GTA Committee Members agree to participate on a Committee for the benefit of all Members and they do not represent the interests of an industry sector or a private or public organisation.

Positioning statementGTA will continually review the products & services that allow “trade facilitation” to ensure they reflect the commercial grain trading environment. This will occur via input from the GTA Technical Committees, Members and the broader grains industry. The review process will be public, transparent and open to all.

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COMMERCE COMMITTEE y Report and make recommendations to the industry on all matters of relevance addressed by the Commerce Committee.

AusGrain 2013 Charterparty

In 2013 GTA developed and gazetted the AusGrain 2013 Voyage Charterparty, which is now available on the GTA website for use by members.

Prior to deregulation of the Australian wheat export market, AWB was the custodian of the Australian Wheat Charter (Austwheat), as endorsed by the Baltic and International Maritime Council (BIMCO), the most recent edition being Austwheat 1990 (amended 1991).

The Austwheat Charter has became one of the most commonly used charter forms in the Australian export grain trade, although in recent times it has become out of date and it is becoming less common to find an unamended version.

GTA was asked to consider becoming the new custodian of the Austwheat charterparty and review the charter to bring it in line with the current market environment.

The Commerce Committee coordinated the appointment of an Australian Grain Industry Charterparty Development

Committee consisting of industry representatives with experience in export contracts and documentation.

Mr Geoff Farnsworth of Macpherson & Kelley Lawyers and specialist in maritime law was appointed as the Chairman by the Committee.

Charterparty Development Committee comprised;

y Geoff Farnsworth, Chairman

y Rob Wilson, Glencore/Viterra Ltd

y Ben Geneve, Co-operative Bulk Handling Limited

y Patrick Turner, GrainCorp Operations Ltd

y Alastair Boyd, Cargill Australia Limited

y Greg Burk, Glencore/Viterra Ltd

y Hans Van Adrichem, GrainCorp Operations Ltd

y Josh Taylor, Alfred c Toepfer International (Aust) P/L

y Michael Walsh, Cargill Australia Limited

The Committee considered that changes to the existing Charterparties were necessary. They met on several occasions to develop an appropriate draft document for initial consultation with shipowners and brokers.

Objectives

y Advise the Board on changes to existing and development of new, Trade and Dispute Resolution Rules.

y Advise on the effective adoption and implementation with the GTA Trade Rules by individuals and by the relevant sectors of the industry.

y Foster communication between the Board, Management and the Commerce Committee on industry matters that relate to GTA Trade and Dispute Resolution Rules.

y Advise the Board of any developments and/or implementation of Location Differentials pan Australia;

Commerce Committee Members

Name Organisation Meetings Eligible to Attend Meetings Attended

Matthew Rutter Chairman 2012/13 3 3

Phillip Holmes Chairman 2011/12 4 3

Adam Chilcott Viterra Ltd 1 1

Brendan Dart Cargill Australia Ltd 4 4

Brett Stevenson Agrisk Management Pty Ltd 4 3

Darryl Borlase Alfred C Toepfer International Pty Ltd 4 3

Dougal Hunter ASX Limited 4 2

Duncan Lander NSW Farmers Association 4 1

Geoff Farnsworth Macpherson + Kelley Lawyers 4 4

Harry Notaras GrainCorp Operations Ltd 4 4

James Maw Glencore Grain Pty Ltd 4 2

Jamie Smith Grain Producers Australia 1 0

Mark McKay Grain Growers Limited 1 0

Mark Neo Co‑operative Bulk Handling Limited 4 3

Positioning statementGTA contracts and rules provide a constant and consistent methodology for conducting trade along the supply chain, from producer to processor/consumer. The outcome is greater commercial certainty and fairness, and lower risks for any participant in grain chain transactions.

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Photo supplied by Belinda Turner

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The Committee released a first draft voyage charter for industry comment in September 2012 (Member Update 21 of 12) and again in February 2013 (Member Update 04 of 13), on both occasions, receiving a number of submissions which were considered by the Committee and implemented.

These implementations were approved by the Commerce Committee on 17 April 2013 and latter indorsed by the GTA Board of Directors on 28 April 2013. Once the document was appropriately formatted it was made available to GTA Members on the 3 June 2013.

Further information:

y No. 11 of 13 – Grain Trade Australia Voyage Charter – AusGrain 2013

y No. 15 of 13 – AusGrain 2013 Charter Party Explanatory Note

location Differential Methodology

The Commerce Committee received a number of submissions highlighting the issue of variance between the GTA Location Differentials and the actual cost of freight execution.

This issue has been extensively discussed and debated by the GTA Transport, Storage & Port Committee and Commerce Committee. As part of these deliberations a number of alternative methodologies were explored and tested against the requirement of facilitating trade.

Following these reviews the Committee recommended to the GTA Board that GTA:

1. will not change the current methodology (method of calculation) for the GTA Location Differentials for a period of no less than three years, subject to any significant changes in the market, determined by the Commerce Committee;

2. will provide industry with 18 months lead time from the publication of any significant changes to the methodology used to calculate the GTA Location Differentials;

3. will provide industry with 18 month warning of any changes to the LDs as a result of Point 2 above.

It was also noted that:

y there would always be a need for some minor review of the Location Differentials but the Location Differential methodology should remain constant;

y it is the markets role (not GTA’s) to deal with the difference between the Location Differentials and freight rates.

Further information:

y No. 16 of 13 – Policy review and implementation of Location Differentials

Industry Consultation – Performance of the Track Market/Contract

The Commerce Committee undertook a review of the effectiveness of the GTA Track contract, including the LDs. The common messages received by GTA during the Track Market Consultation included:

y the Track Contract/Market is healthy and robust;

y there is a reluctance to change something that is working;

y it is estimated that a minimum of 12 to 15 million tonnes is traded track each year and considerably more during a good season;

y the contact is continuously evolving over time;

y site based pricing after harvest is a means to reduce exposure to the difference between LD’s and freight execution cost;

y more delivered trading has emerged post-harvest;

y it’s evident that trader activity is evolving to manage exposure to the difference between Location Differentials and the freight execution costs;

y there is a need for consistency/certainty in the track market;

y GTA should set the Location Differentials further out from harvest (18 months out was a common theme);

y the trade is continuously evolving to deal with market fluctuations but the contract must remain consistent to maintain its integrity.

In summary, there was very strong support for no changes to the Track Contract or the Location Differentials. The above industry consultation process was contributory to Commerce Committee’s decision to maintain the current Location Differentials for three years.

GTA Contract No.5 – CFR/CIF Contract

At the request of the GTA membership, GTA has prepared a draft GTA Contract No.5 – CFR/CIF Contract. The contract has been primarily developed with the Australian grain export container trade in mind and is intended to complement the GTA Contract No.4 – DCT.

Traditionally, international and export contracts have been the domain of GAFTA who publish a wide range of contracts for particular trades.

Consistent with all GTA contracts, the No.5 Contract will incorporate the GTA Trade Rules and Dispute Resolution Rules, which provide that the proper law of the contract is the law of New South Wales, and that disputes will be subject to the GTA Dispute Resolution process.

The Commerce Committee agreed to engage the assistance of a specialist CFR/CIF Contract Development Advisory Group (the Group) to help development the contract. The Group comprised of:

y Geoff Farnsworth, (Chairman) Macpherson + Kelley Lawyers;

y John Orr, Premium Grain Handlers;

y Nathalie Dufils, GrainCorp;

y Archie Wilson, GrainCorp;

y Josh Taylor, Alfred C Toepfer International (Australia) Pty Ltd;

y James Roberts, CBH Group;

y Alister Boyd, Cargill;

y Michael Walsh, Cargill;

y David Werner, Cargill;

y James Maw, Glencore.

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The Group met on 1 May and again on 5 June to identify the specific requirements for a CFR/CIF Contract to meet the needs of the broader grain industry and in particular the export container sector.

The familiar contract title of CIF/CFR was chosen in accordance with the INCOTERMS 2010.

Further information:

y No. 17 of 13 – GTA Contract No.5 – CFR-CIF Contract

GTA Trade Rules

Grain Trade Australia (GTA) have finalised the review of the Trade Rules.

The Trade Rules were developed in 1998 and limited changes were been made to ensure they remain contemporary.

The Rules have served the trade well over the years. From time to time, largely as a result of arbitrations, GTA has received feedback from lawyers who are often looking at the Rules for the first time.

The general effect of their comments was that the rules were not sufficiently formal, as you would expect from a contract (of which they become part). For example, the Rules contained statements of “good practice”. While this is useful guidance for the Trade, it is probably not appropriate that it be incorporated into a contract. The Rules also lacked a meaningful definition section.

The intention of the review was not to change the effect of the Rules, nor to change the way they operate. The review was only intended to separate out those

parts of the Rules which shouldn’t be incorporated into a contract; take out those parts which aren’t being used and probably won’t be used, and add a definition section.

Further information:

y No. 18 of 12 NEW – GTA Trade Rules

STANDARDS COMMITTEE

Objectives

y Advise the Board on changes to existing and development of new, grain standards.

y Develop, in conjunction with industry, quality assurance protocols across the grain value chain.

y Advise on the effective adoption and implementation of the GTA grain standards by individuals and by the relevant sectors of the industry.

y Foster communication between the Board, Management and the Standards Committee on industry matters that relate to GTA Grain Standards.

Standards Committee Members

Name Organisation Meetings Eligible to Attend Meetings Attended

Peter Reading Chairman (standing in for Rob Parkes) 2 2

Robert Parkes Chairman (long service leave) 2 2

Adrian Reginato Cargill Australia Ltd 4 3

Cindy Mills Wheat Quality Australia Ltd 3 3

Chris Kelly Grain producer 1 1

Geoff Clatworthy Inghams Enterprises P/L 4 3

Jeanette Marszal Viterra Ltd 4 4

Pat Wilson GrainCorp Operations Ltd 4 3

Natalie Maguire Co‑operative Bulk Handling Limited 4 3

Wayne Mckay NSW Farmers Association 4 4

Vince Moroney Co‑operative Bulk Handling Limited 4 3

The task of reviewing standards is one that is not taken lightly as the standards are fundamental for domestic and export trade. The process involves extensive industry consultation which is not just confined to Members.

GTA called for industry submissions, which sought feedback from industry on potential changes to grain standards for the coming season. Draft standards were published on the GTA website. Feedback was received from a range of industry sectors on the proposed changes and a range of other issues.

The GTA Standards Committee met on several occasions and reviewed industry feedback. The final Committee recommendations were presented to the Board for approval and subsequently gazetted on the GTA website for industry use from the 1 August each year.

Further information:

y No. 16 of 12 GTA Grain Standards 2012 2013

GTA Standards Explanatory Memorandum

The Standards Committee receives submissions from all sectors of the industry covering a wide variety of issues. The scope of the Annual Report precludes coverage of all but the main issues.

To enable the Australian grain industry to be fully briefed on all issues, GTA publishes each year a detailed summary of all the deliberations of

Positioning statementGTA quality and contract standards are the benchmark for the Australian grains industry. The objective is to unequivocally provide confidence to consumers and processors of Australian grains.

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the review process for grain standards. This function aims to ensure transparency and integrity of the process and the outcomes.

The Explanatory Memorandum is available on the website and details:

y changes to the standards;

y submissions rejected; and

y changes flagged for introduction next year were GTA believe industry require time to adjust their processes.

The new season commodity standards are made available on the GTA website from the 1 August every year.

GTA Visual Recognition Standards Guide

In 2011/12 the Standards Committee developed the Visual Recognition Standards Guide for wheat barley and sorghum to assist in the assessment of grain defects and their classifications.

This guide has become an invaluable tool for all grain receival and classification personal. Over the years the Committee has included a variety of new commodities and refined the existing references in the Guide.

The Visual Recognition Standards Guide now includes wheat, barley, sorghum, oats, canola, desi-chickpeas, feed maize, angustifolius lupins and red lentils. The Guide is available for purchase on the GTA website.

Further information:

y No. 21 of 13 Release of GTA Visual Recognition Guide 2013

Weed Seed Review

The Standards Committee continues to review the current weed seed categories and tolerance in cereal with a view to simplifying the classification process. While this review is focused on cereals, these changes will also be considered for implementation in other commodities.

Industry was first advised of the weed seed trail and review in 2010/11. The trial has continued through the 2011/12 and 2012/13 season with an aim for more trial work in 2013/2014 season.

GTA is now seeking participants to take part in the trail. Details of this trial are outlined on the GTA website.

Further information:

y No. 17 of 12 Weed Seed Review Industry Consultation Paper

Release of the Oats Standards booklets 2013/14

Oats has been added to the list of individual grain standards booklets, which now includes:

y Wheat Standards Booklet;

y Barley Standards Booklet;

y Sorghum Standards Booklet;

y Oats Standards Booklet;

y Cereal Rye and Triticale Standards Booklet;

y Maize Standards Booklet.

These publications are critical to ensure the adoption pan Australia of common sampling and testing and reference

methods and are available for download from the GTA website.

National Competency Standards for Sampling and Testing Grain

The Standards Committee have finally achieved endorsement of a set of nationally accredited competency standards for the sampling and testing of grain.

The National Skills Standards Council (NSSC) has officially endorsement a nationally accredited competency standard for “Sampling and Testing of Grain and Related Commodities – AHCBAC309A”.

In 2005/2006 the Standards Committee in conjunction with NSW TAFE first developed various competency standards that related to the sampling and testing of grain on arrival at a delivery point.

The standards were forwarded to AgriFood Skills Australia for consideration as the national competency standards. AgriFood Skills Australia subsequently modified the competency standards and released AHCBAC304A – Test grains/seeds on receival.

Following representations from members regarding the inadequacy of AHCBAC304A – Test grains/seeds on receival for their training needs, the Standards Committee reconvened to compare the original competency standards developed by industry against those released by Agrifood Skills Australia.

Photo supplied by Jan Cameron Smith

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The results of this mapping exercise identified a number of major points of difference which needed to be addressed.

These differences along with the needs of an ever changing industry environment are reflected in the new competency standard titled “AHCBAC309A – Sample & test grain and related commodities”. The addition of “related commodities” is important as many grain industry participants, such as feed mills, receive various meals etc. which also undergo similar receival, sampling and testing regimes.

Further information:

y The competency standard AHCBAC309A – Sample & test grain and related commodities is available at http://training.gov.au

TRADE & MARKET ACCESS COMMITTEE

Objectives

1. In relation to innovative technology (e.g. biotechnology, nanotechnology):

a. Ensure the current GTA GM policy reflects industry needs in relation to commercial activities associated with the introduction of innovative technologies into the Australian commercial grain/oilseeds industry.

b. Consult with and advise where required, with technology proponents, seed companies and other related parties in relation to “pipeline” events intended for release in Australia.

c. Where required provide advice to the Board on the appropriate commercial processes to ensure OGTR approved and licensed GM events/crops for commercial release into the Australian grain market integrated seamlessly with our international trading partners.

d. Where required provide advice to the Board on the appropriate commercial processes to ensure FSANZ approved GM events released into the Australian grain supply chain are integrated seamlessly into the supply chain.

2. Monitor developments in local and international grain environments and policies and develop appropriate responses for the Australian grain industry where required.

3. Where required assist GTA to liaise and collaborate with industry supply chain

Trade & Market Access Committee Members

Name Organisation Meetings Eligible to Attend Meetings Attended

Mitch Morrison Chairman 5 5

Adrian Reginato Cargill Australia Ltd 5 5

Chris Wolski Queensland Agricultural Merchants 3 2

David Hudson SGA Solutions Pty Ltd 5 3

Martin Honner NSW Farmers Association 3 0

Narelle Moore Co‑operative Bulk Handling Limited 5 2

Nick Goddard Australian Oilseeds Federation 5 4

Pat Wilson GrainCorp Operations Ltd 5 2

Rosemary Richards Australian Grain Exporters Association 5 4

Stephen Sheridan Victorian Farmers Federation 3 2

Tony Russell Grain Industry Market Access Forum 4 4

organisations and/or government in developing appropriate responses to developments in local and international grain environments and policies.

low level Presence (llP)

Following industry consultation the Trade & Market Access Committee agreed Australian should support and work with government in the adoption of an LLP policy.

In 2012 the Trade & Market Access Committee developed a Low Level Presence policy (LLP) position for the Australia grain industry. The Committee recommended importing countries required an LLP policy to ensure trade is not disrupted if trace amounts of an unapproved event is detected in the country of importation.

The International Grain Trade Coalition (IGTC), of which GTA is a member, has been promoting the adoption of LLP policy for several years. GTA has held numerous discussions with DAFF and DFAT, reiterating the need for both intergovernmental and international engagement on the issue of a LLP policy development.

DAFF have committed to sending a senior delegate to the next LLP discussions to be held in Durban South Africa in September 2013.

Further information:

y GTA website – Submissions

Positioning statementGTA will lead the industry from its regulatory and transition era to a fully commercial industry. GTA will pick up functions which are properly those for industry to manage internally, and approach Governments and other agencies for their action, where wider or community interests warrant a public partnership approach.

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Transport, Storage & Ports Committee Members

Name Organisation Meetings Eligible to Attend Meetings Attended

John Orr Chairman 2012/13 4 2

Matthew Rutter Chairman 2011/12 2 2

Anthony Borgese Cargill Australia Ltd 4 3

Ben Raisbeck Glencore Grain Pty Ltd 4 3

Brett Reid Gavilon Grain Australia P/L 4 3

David Capper Co‑operative Bulk Handling Limited 4 2

David Ginns GrainCorp Operations Ltd 4 4

Craig Dennis Queensland Agricultural Merchants 2 1

Jim Riordan Riordan Grain Services 2 2

Jock Carter Newcastle Agri Terminals 4 2

Josh Taylor Alfred C Toepfer International (Aust) P/L 4 2

Mark O’Brien George Weston Foods 4 4

Matthew Kelly KM & WM Kelly & Sons 4 3

Peter Touhey Victorian Farmers Federation 2 0

Philip Wilsdon Grain Producers Australia 2 0

Zsolt Szilassy Viterra Ltd 2 1

International Standard for Phytosanitary Measures for the International Movement of Grain

The International Standard for Phytosanitary Measures (ISPM) are the standards recognised as the basis for phytosanitary measures applied by the World Trade Organization (WTO) under the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement). The International Plant Protection Convention (IPPC) Standards Committee oversees the development of the proposed standards that are then submitted to the Commission on Phytosanitary Measures (CPM) for adoption.

Currently there is no international guidance adopted by the ISPM that focuses specifically on phytosanitary measures for the international movement of grain.

It has been argued that international guidance is needed on the assessment of pest risks related to grain as a pathway for quarantine pests, and on technically justified phytosanitary measures to manage such pest risks. Exporting and importing countries, in particular developing countries, may benefit from such guidance.

As a result the CPM resolved to develop a standard. The challenge now will be to ensure that the standard is developed in a manner that limits restrictions to international trade.

GTA, in conjunction DAFF Biosecurity are advocating that the standard focus on issues that are most appropriate to Australia as an export nation and are non-controversial, i.e.:

1. effective treatments of shipments of bulk grain;

2. suitability of bulk vessels to load grain.

The Australian Government has taken this position to the CPM and if adopted the above activities would enhance the current phytosanitary processes.

Australia is currently represented on the IPPC Standards Committee by Dr. Jan Bart Rossel, Director of the International Plant Health Program Australian Government Department of Agriculture, Fisheries and Forestry (DAFF). Dr Rossel is also the Assistant Steward for the development of this ISPM. Dr Rossel’s involvement is a positive outcome for Australia and other grain export countries. GTA is providing direct communications to Dr Rossel through DAFF Biosecurity.

Further information:

y GTA website – Submissions

TRANSPORT, STORAGE & PORTS COMMITTEE

Positioning statementGTA contracts and rules provide a constant and consistent methodology for conducting trade along the supply chain, from producer to processor/consumer. The outcome is greater commercial certainty and fairness, and lower risks for any participant in grain chain transactions.

Objectives

(a) Advise the Board of any recommendations made by the Committee in relation to port access and relevant provisions under the Competition and Consumer Act 2010;

(b) Advise the Board of any other matters of concern to GTA Members that are relevant to the areas of expertise of the Transport, Storage & Ports Committee;

(c) Report to industry on recommendations made and all other matters of relevance addressed by the Transport, Storage & Ports Committee.

G TA A N N U A L R E P O R T 2 0 1 2 / 1 3 29

The Transport, Storage & Ports Committee continue to play a critical role in providing technical guidance from a supply chain point of view to GTA Members, other GTA Technical Committees and the GTA Board on relevant issues.

The Transport, Storage & Ports Committee have been instrumental in the:

y review of the Methodology and development of the GTA Location Differentials;

y track market/contract consultation;

y development and review of the export based and domestic GTA contracts;

y development of the Australian Grain Industry Code of Practice and Technical Guidance Documents;

y DCT Contract re Importing Countries Permits (Member Update No. 13 of 13 – DCT contracts & Importing Country Requirements)

y Container Cleanliness Guidelines (GTA Industry Briefing paper – Industry Standards for Food Grade Shipping Containers)

y Review of the DAFF Plant Export Operations Manual Vol. 12 Treatments

Export Container Forum

The Transport, Storage & Ports Committee hosted the first Grain Export Container Forum on 16th May, 2013, in Melbourne attracting over 160 participants.

Containerised exports have been a major growth sector of the Australian grain industry. Wheat exports in containers have increased from 846,000 tonnes in 2007 to 2,232,000 tonnes in 2011. This represents an industry sector growth of 264% in just five years.

Containerised wheat exports account for over 11% of all wheat exports, with consignments being placed in more than 42 countries, many of them first time users of Australian wheat.

This growth in export tonnage has not been without its challenges, from the logistics of obtaining food grade containers for both regional and metropolitan based packing facilities, to phytosanitary certification and contractual issues.

The Forum presenters on the day, industry experts in their field, covered all the major issues being encountered by this export sector.

During his opening address Mr John Orr, Chairman of the GTA Transport, Storage & Ports Committee, reaffirmed the need for industry to maintain integrity. Urging industry to supply customers with quality assurance certification, identify the importing countries Maximum Residue Limits (MRL), conduct residue testing before loading and, finally, utilise the National Residue Survey to benchmark current testing protocols.

DISPuTE RESOluTION SERVICE

2011/ 2012

2012/ 2013

No. of arbitrations commenced

8 10

No. of arbitrations settled

13 18

Awards released 8 8

Commercially settled prior to hearing

5 8

Settled by way of external resolution, i.e. court

2

Active arbitrations as at 30 June

5 6

Photo supplied by Ian Armstrong

Positioning statementGTA has dispute resolution processes in place for all grain-related transactions, be they for grain contracts, technology licences, financial products or storage agreements.

G TA A N N U A L R E P O R T 2 0 1 2 / 1 330

Summary of arbitration outcomes

Arb. No. Type of arbitration Claimant Respondent Award in favour of

167 Full Grain trader Grain trader Claimant

173 Fast Track End user Grain trader Claimant

171 Full Grain trader Grain producer Claimant

177 Fast Track Grain trader Grain producer Respondent

162 Full Grain trader Grain producer Respondent

178 Full Grain trader Grain trader Respondent

164 Full Grain trader Grain producer Respondent

165 Full Grain trader Grain producer Respondent

GTA works to resolve disputes by peer review, through its Dispute Resolution Process. The process is designed to save time and expense while providing an efficient, fair and equitable means to settle disputes related to commercial transactions.

All (non-International) arbitrations conducted in Australia are subject to the provisions of the Commercial Arbitration Act (Act) applicable in each State. The GTA Dispute Resolution Rules are expressed to be subject to the NSW Act.

Since 2003:

y 188 arbitrations have been initiated.

y 51% of arbitrations are commercially settled before an Award is reached.

y 40% of Respondents, by choice, do not participate in the arbitration process. The thinking is that by not participating that the arbitration will not proceed. This is a wrong assumption.

y There has been 10 appeals against an award handed down by a GTA Tribunal to a state Supreme Court of which 9 were dismissed by the Court

ARBITRATIONS (OPEN) AS AT 30 JUNE

0

30

10

40

20

50

2004 2005 2006 20092007 2010 20122008 2011 2013

Photo supplied by Viterra Limited

G TA A N N U A L R E P O R T 2 0 1 2 / 1 3 31

revolve around this or a similar theme have been unsuccessful for the party claiming redress.

Further information:

y NewsInGrain, July 2013

Incorporation of GTA Trade Rules & the GTA Dispute Resolution Rules

Arbitrations have been commenced where it is not readily apparent that a GTA Tribunal has jurisdiction to hear the matter. This situation arises when the contract does not definitively state that the GTA Dispute Resolution Service will prevail if a dispute arises.

“All other terms as per GTA” MAY NOT be sufficient to incorporate the GTA Trade and Dispute Resolution Rules.

To put it beyond doubt, use the sample clauses contained in Member Update, 22 of 13 Incorporation of GTA Trade Rules & the GTA Dispute Resolution Rules and seek legal advice.

Guidelines to the GTA Dispute Resolution Service

The Dispute Resolution Guidelines should be read by anyone considering GTA arbitration and before directing inquiries to GTA. They set out GTA’s policy and seek to provide clarification in relation to various aspects of GTA arbitration practice and procedure. They are to be read in conjunction with the applicable Trade Rules and Dispute Resolution Rules, the applicable legislation and case law.

Further information:

y Guidelines to the GTA Dispute Resolution Service on the GTA website www.graintrade.org.au

Appointment of board Approved Tribunal Chairman (Export Contracts)

Export contracts being used by GTA members are increasingly referencing the GTA Dispute Resolution Service (DRS) due to the cost and convenience of GTA arbitration as opposed to alternative dispute resolution systems.

Potentially, disputes relating to export contracts will be characterised by technical complexity and substantial quantum of damages.

Accordingly, the GTA Board approved the creation of a panel of arbitrators with legal qualifications and experience in maritime law and/or export grain contracts. who will act as Arbitration Tribunal Chairman (Export Contracts) for these arbitrations.

Further information:

y Member Update, No. 34 of 12, Nominations for Arbitration Tribunal Chairman (Export Contracts)

Quality at overseas destination, DCT Contracts and Arbitration awards

The use of Delivered Container Terminal (DCT) contracts has increased significantly over the last 10 years. The contract is used mainly for the sale of bulk commodities in shipping containers, mainly twenty foot equivalent units (TEU), and includes various commodities such as grain, cotton seed, pulses and hay.

At the GTA Export Container Forum, held on 16 May 2013 in Melbourne, there was discussion of the issue of arbitrations involving the GTA No. 4 Contract, DCT Contract.

There has been a recurring theme involving the DCT Contract in arbitrations where the quality of the grain in the container consignment, upon reaching its overseas destination, does not meet the contract specifications. The Australian based exporter then attempts to seek redress from their DCT Seller. All arbitrations that have been concluded and that

Arbitration summaries

GTA publishes the summaries (identities stripped) of awards where it is deemed the award will improve the contracting practices within the grains industry.

Further information:

y Dispute Resolution, www.graintrade.org.au/dispute_resolution

0.005%is ThE EsTiMaTED nuMbEr oF Grain conTracTs ExEcuTED in ausTralia on an annual basis ThaT rEQuirE a lEGal rEMEDy.

Disputes requiring a legal

remedy are minimised due to

the contractual integrity of GTA

contracts, trade and arbitration

rules which take precedent

from Australian Contract Law

and state based Commercial

Arbitration Acts.

Relevant arbitrations on the GTA website

y 174 – mouldy oats & underweight container

y 159 – chickpeas – quality

y 152 – barley – quality

y 920 – faba beans – quality

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G TA A N N U A L R E P O R T 2 0 1 2 / 1 3 33

Surname First name Organisation

Allen Guy Advance Trading

Asser Lyndon Viterra Operations Limited

Basnett Tom AgRisk Management Pty Ltd

Barron Graham Grain Producer – NSW

Benham Jock GrainCorp Operations Limited

Bennett Steve Bunge Agribusiness Australia Pty Ltd

Brealey Rob PentAG Nidera Pty Ltd

Burt Steve PentAG Nidera Pty Ltd

Carroll Greg M C Croker Pty Ltd

Chaseling Michael Emerald Group Australia Ltd

Clancy Simon IKON Commodities

Clark Richard Grain Producer – NSW

Cooper Brett FC Stone

Coventry Charles GrainCorp Limited

Dalgliesh Ian Noble Resources Australia Pty Ltd

Danieli Robert D&M Stockfeeds

Deacon Terry Deacon Seeds Company

Delahunty Leo Grain Producer – VIC

Dickie Rob Joe White Maltings

Dillon Graeme Inghams Enterprises Pty Ltd

Donnelly Stephen Blue Ribbon Seed & Pulse Exp’ters P/L

Dubey Sanjiv GrainTrend Pty Ltd

Dunlop James Riverina Oils and Bio Energy Pty Ltd

Ezzy Vernon Viterra Operations Limited

Fahy Jack Max Grains Pty Ltd

Flottman Peter Synecon Pty Ltd

George Lloyd Ag Scientia Pty Ltd

Goyder Andrew Grain Link WA Pty Ltd

Surname First name Organisation

Greenhalgh Angela GrainPro

Hall Anthony Agfarm Pty Ltd

Hammond George Allgrain Pty Ltd

Heinjus Chris Rural Directions Pty Ltd

Holmes Nathan Riverina (Australia) Pty Ltd

Holmes Phillip Grain Marketing Advisor

Houe Ole IKON Commodities

Howard Peter GrainTrend Pty Ltd

Howells Stephen Ridley Corporation

Hunt James Blue Ribbon Seed & Pulse Exp’ters P/L

Imray Robert Farmarco

Jones Michael Kennett Rural Services P/L

Kelly Matthew KM&WM Kelly & Sons

Kerr Michelle Riordan Grain Services

Langtry Gerard Langtry Logistics

Lengren David PentAG Nidera Pty Ltd

Lewis Mark Riordan Grain Services

Lumsden Callum Grain Producer – WA

Marshall Ray Grain Producer – WA

McKay Robert Agfarm Pty Ltd

McLaren Angus Grain Producer – NSW

McMahon Malcolm Emerald Group Australia Ltd

McMullen Gerard McMullen Consulting Pty Ltd

McNair Simon Industry consultant

Notaras Harry GrainCorp Operations Ltd

O’Brien Mark George Weston Foods Limited

Orr John Premium Grain Handlers

Osborne Alick Tully Sugar Limited

gta Board approved arBitrators as aT 28 JunE 2013

G TA A N N U A L R E P O R T 2 0 1 2 / 1 334

Surname First name Organisation

Brasington Hazel Holman Fenwick Willan

Deal Anthony O’Halloran Deal Lawyers

Farnsworth Geoff Macpherson & Kelley Lawyers

Lockwood Christopher Holman Fenwick Willan

McQueen Peter Peter McQueen Pty Ltd

Rosenthal Jeremy SBA Law

Thompson Stephen Holman Fenwick Willan

Surname First name Organisation

Pamminger Klaus GrainCorp Operations Ltd

Peace Colin Industry consultant

Perkins Craig Perkins Commodity Brokers

Pratt Cameron GrainCorp Operations Ltd

Reeves Michael Ridley AgriProducts

Richardson Stuart McDonald Pelz

Schofield Justen AgLink CMS

Storey Ron Australian Crop Forecasters

Strauss Brenton River City Grain

Syme David Louis Dreyfus Australia

Tainsh Sam GrainCorp Operations Ltd

Taylor Brad GrainCorp Operations Ltd

Teague Tim Teague Australia Pty Ltd

Torrens Mark Mars Petcare

Tuohey Peter Grain Producer – VIC

Vater Kim A W Vater & Co

Warda John Emerald Group

Warden Neil Grain Producer – NSW

Wells Henry Industry Consultant

Wilsdon Andrew Glencore Grain Pty Ltd

Wilson Pat GrainCorp Operations Ltd

Wise Dennis Grain industry consultant

Woodhouse Andrew Advance Trading

Woods Gerard Australian Grain Storage

Wood Michael Rural Logic

gta Board approved triBUnal chairman (export contracts) as aT 28 JunE 2013

G TA A N N U A L R E P O R T 2 0 1 2 / 1 3 35

gta professional DEvElopMEnT proGraM

G TA A N N U A L R E P O R T 2 0 1 2 / 1 336

 

Courses/workshops conducted in 2012/13

Course/workshop

Location Registrations

GTA Trade Rules and Contracts

QLD, NSW, VIC, SA, WA

66

GTA Grain Standards

NSW, VIC, 20

Grain Merchandising

VIC, NSW 32

Understanding Grain Markets – trade

WA, SA, NSW, QLD, VIC

84

Grain Accounting

NSW, QLD 40

GTA Dispute Resolution & Arbitration

QLD, NSW, SA, VIC

20

Advisory & Compliance Workshop

Melb. 73

Assessments 22

Total 357

Grain Merchandising was run in Dubbo and Melbourne. Lloyd George (Ag Scientia Pty Ltd) delivered both courses.

Grain Accounting was delivered in Dubbo and Toowoomba. With Malcolm Finlayson (Finesse Solutions) as the principal presenter, this course continues to grow in numbers and reputation.

GTA Dispute Resolution & Arbitration courses were run in Toowoomba, Dubbo, Melbourne and Adelaide. This course is presented by Geoff Honey, GTA CEO.

understanding Grain Markets – Trade courses were conducted in all states with a noticeable increase in registrations from the previous year. This course had the highest number of participants in the PDP and course feedback was very positive. The course targets new entrants to the industry and delivers the fundamentals in an easy to understand format. These courses were delivered by Dennis Wise and Lloyd George.

In-House training – A number of courses were delivered in 2012/13. The flexibility of this type of delivery is a major benefit and it allows the course presenter to tailor the training to the specific needs of stakeholders. Large numbers of personnel generally attend as it eliminates the need for those staff to be off-site. In-House course numbers continue to grow and increased growth is forecast for 2013/14.

PROFESSIONAl CERTIFICATE IN GRAIN TRADING (GRAIN TRADE AuSTRAlIA)

Individuals who pass the assessment for the three key modules being GTA Trade Rules & Contracts, Grain Standards and Grain Merchandising are entitled to receive the Professional Certificate in Grain Trading (Grain Trade Australia).

This year there were four industry personnel who were eligible for this qualification. As of January 2013, the Professional Certificate in Grain Trading ceased to exist as GTA moves to develop a nationally accredited certificate level qualification.

Progress has been made regarding the development of a national certification for the courses in the Professional Development Program (PDP). This will continue throughout 2013 and 2014.

Whilst it is anticipated that the current suite of courses in the PDP will form the core subjects for any future qualification, confirmation of this must come via the relevant regulatory and governing bodies. GTA is actively working with these bodies to ensure a pertinent ‘grain’ certification is developed that addresses the current shortfall of formalised qualifications in the grains industry.

In the interim, GTA will continue to promote the PDP to ensure a common understanding across the industry on grain commercial processes/activities.

Trade Rules and Contracts continued to attract registrations with courses run in Melbourne, Perth, Adelaide, Dubbo, Toowoomba and Sydney. Geoff Honey was the principal presenter in all locations.

GTA Grain Standards was conducted in Melbourne and Tamworth by Gerard McMullen (GTA Project Manager Grain Quality).

Positioning statementGTA will deliver programs to “grow our own” and ensuring that the trade facilitation processes developed by GTA are well understood at all links in the value chain from producers to trade intermediaries to end users.

Grain Trade Australia has the potential to become the main developer and deliverer of grain market professional development programs. GTA will be recognised as an organisation that encourages and recognises potential leadership attributes in industry personnel.

G TA A N N U A L R E P O R T 2 0 1 2 / 1 3 37

indUstry sUpport services conDucTED by GTa

G TA A N N U A L R E P O R T 2 0 1 2 / 1 338

WHEAT QuAlITy AuSTRAlIA

Wheat Quality Australia (WQA), a not for profit company limited by guarantee, was established by Grain Trade Australia and Grains Research and Development Corporation (GRDC) and commenced operations on 1 January 2011. WQA is responsible for classifying wheat varieties in line with market needs. This is achieved by determining the quality requirements of the market and assessing variety performance against those requirements.

Wheat Quality Australia established the Wheat Classification Council (WCC) to provide the link between wheat varieties and market requirements, which involves the annual and longer term review of the Wheat Master List and to provide policy and guidance to the WQA Board in the development of a long term business case on its activities.

Directors nominated by GTA

Caroline Rhodes has more than 12 years of experience in both the public and private sectors of the Australian grains industry, having specialised in the areas of regulation and policy development. Her current role is Deputy Managing Director for Bespoke Approach.

Scott McClure is currently a Director of SDM Consulting which provides strategic and operational advice to the grains industry. Projects have included industry development analysis for the BHC Divisions of CBH Group/Viterra/GrainCorp; development of an industry funding proposal for Grain Trade Australia; a strategic direction paper for the International Grain Trade Coalition; and numerous supply chain efficiency and strategic initiatives for GrainCorp Operations Limited (ASX Top 100 company).

Wheat Quality Australia Variety Master list

The major output of WQA is the release each year of the Wheat Quality Australia Variety Master List which records the highest possible receival grade available for respective varieties. This list is finalised on 1 September each year.

Further information:

y WQA website

Review of Wheat Classification

GRDC funded WQA to commission a report from John Oliver to conduct a “Review of Wheat Classification”. The Terms of Reference were:

1. Determine how the Classes should be defined by reviewing the definitions of the Classes.

2. Define the quality requirements for these Classes by reviewing the current empirical quality guidelines.

3. Develop tools and aids for use by the Variety Classification Panel.

The Review made the following high level comments:

y The practical implementation of Variety Classification is through acceptance of the Wheat Varietal Master List as the basis for Grade segregation at harvest, and accurate declaration of variety upon delivery.

y Australia has moved from public to commercial wheat breeding and from single desk exporter to multiple marketers, therefore wheat variety Classification decisions can have enormous impact on the potential viability of various organisations. As such the Classification System must be efficient; Classification decisions must be consistent, transparent, defensible and timely; and feedback to all sectors must be clear and objective.

G TA A N N U A L R E P O R T 2 0 1 2 / 1 3 39

The Review detailed 77 recommendations, with the Wheat Classification Council recommending that 76 of them should be implemented.

y These recommendations form the core of the current WQA Strategic Plan.

y Management have prioritised the recommendations and estimated the investment expense of implementing them.

Outreach programs conducted by WQA

Wheat Quality Forum – Perth

More than 90 Western Australian wheat producers, marketers and key industry stakeholders attended the Wheat Quality Forum hosted by the Australian Export Grains Innovation Centre (AEGIC), Wheat Quality Australia and the Grain Industry Association of Western Australia (GIWA). This day-long forum featured a line-up of wheat quality experts from across Australia and provided insight into areas such as identifying wheat quality and functionality, international market requirements for Australian wheat and current wheat quality issues for Western Australian wheat.

Wheat Quality Forum – Melbourne, 14 November 2012

The forum focussed on the role that Australia’s quality management system plays in generating a higher value wheat product for the producer and the end user.

Industry update – Melbourne, 30 July 2012

The Wheat Quality Australia Industry Update coincided with the 2012 Australian Grains Industry Conference. More than eighty industry participants were provided with a greater understanding of the role and functions of Wheat Quality Australia including the achievements and future objectives of WQA.

Funding of WQA

Current funding for WQA is derived from:

y GRDC – for technical activities associated with the variety classification process;

y Breeders for each line submitted for classification;

y GTA for administrative services, accounting

y BHC’s, CBH Group, Viterra, GrainCorp and AWB/Cargill

y Australian Grain Exporters Association

y Flour milling companies with substantive commitments from Allied Mills, Weston and Manildra.

It is recognised that this funding model is not representative of the whole of industry and a major focus for WQA is to develop a more inclusive whole of supply chain model.

AuSTRAlIAN GRAIN INDuSTRy DISCuSSION GROuP

In May 2013, GTA convened a meeting between the following organisations with the intention to form the Australian Grain Industry Discussion Group.

y Australian Grain Exporters Association (AGEA)

y Australian Oilseeds Federation (AOF)

y Grain Producers Australia (GPA)

y Grains Research Development Corporation (GRDC)

y Grain Trade Australia (GTA)

y Grain Growers Limited (GGL)

y Pulse Australia (PA)

y Stock Feed Manufacturers Council of Australia (SFMCA)

The members agreed that AGIDG will:

y provide a forum for discussion on issues relevant to the Australian grain industry.

y develop overarching industry strategies and policies that promote and enhance a competitive and efficient Australian grain supply/value chain.

y assist Government to formulate policy that enables and supports a competitive grain industry through development of industry agreed position on domestic and export related matters.

Membership of AGIDG, apart from Grain Research & Development Corporation, will be open to organisations that satisfy the following criteria:

y entirely or largely devoted to grain industry activities;

y are member based;

y national in operation; and

y constituted and recognised as a not for profit organisation.

At its first meeting, the AGIDG recognised the major issue that required cross industry discussion and resolution was the funding of industry development functions.

THE NATIONAl WORKING PARTy ON GRAIN PROTECTION

The National Working Party on Grain Protection (NWPGP) is the industry forum providing participants with the latest research and developments, in the area of post-harvest storage and hygiene, chemical usage and outturn tolerances, international and domestic market requirements, and regulations.

GTA will continue to offer secretariat services to NWPGP.

G TA A N N U A L R E P O R T 2 0 1 2 / 1 340

2013 Annual Meeting – 18/19 June 2013

The 2013 National Working Party on Grain Protection (NWPGP) annual meeting in Melbourne was held on 18-19 June 2013. There were more than 120 attendees at the meeting, representing all sectors of the grain supply chain.

The NWPGP continues to refine and promote the:

1. Phosphine Resistance Management Strategy to prolong its life for use in grain storage.

2. Australian Grains Industry Post Harvest Chemical usage Recommendations and Outturn Tolerances document which details the chemicals that are permitted for use post-harvest and applicable Maximum Residue Limits (MRLs) for grain out turned to Australian domestic or export markets.

The number of chemicals available for use for insect control remains under threat from:

y a continued lowering of international MRLs,

y lack of alternative chemicals and alternative control strategies being developed & adopted,

y insect resistance, and more importantly for all in the supply chain,

y the continued misuse of these chemicals and/or supplying product to markets in violation of chemical MRLs. Industry needs to fully understand the implications of the misuse of chemicals such as phosphine and the threat this makes to the long term viability of our industry.

The major outcomes/conclusions of the NWPGP Annual Meeting include:

y Increased communication and extension activities is required.

y There is continued pressure on Codex for workable international MRLs.

y Insect infestation trends – no significant difference in the insect species detected from last year though there has been detection of insects in rail discharge areas including export terminals. Train hygiene possible emerging issue.

y Update on the distribution, frequency and resistance to phosphine and other grain protectants.

y Insect ecology – requirement for continued research in the understanding of insects in the field and preventing entry into storages.

y Grain Producers of Australia are developing an on-farm Stewardship Program with “in principle support” from NWPGP.

y Storage management with increased focus on building and maintaining suitable storage facilities and managing grain through aeration. Silo manufacturers improving their products in this regard.

y National Residue Survey results – compliance remains very high, though violations of pre-harvest chemicals an emerging concern.

y 2013 Market Trends Survey – overall customers prefer Australian grain, though there is a need to improve practices and meet tighter MRLs requirements, enable full grain traceability etc.

Further information:

y National Working Party On Grain Protection – 2013 Annual Meeting – outcomes GTA website – http://www.graintrade.org.au/nwpgp

AuSTRAlIAN GRAIN INDuSTRy CODE OF PRACTICE

GTA members, in collaboration with the broader grain industry, have developed the Australian Grain Industry Code of Practice to support the industry’s

self-regulation in an evolving market. The Code formally defines processes and procedures, demonstrating the high level of quality integrity and self-regulation of the industry.

The draft Australian Grain Industry Code of Practice (Code) will become effective in July 2013. It is planned for the Code to become mandatory for all GTA members at the commencement of the 2014/2015 membership year.

The grain industry is committed to self-regulation. The Code supports this by providing a transparent process that outlines minimum requirements of all involved in the Australian grain supply chain.

GTA strongly encourages all members to review the Code carefully, to determine their obligations.

The Code describes practices used by the grain industry to ensure Australian grain and grain products meet domestic or export customer requirements. Customer requirements include those stipulated in contracts, as well as regulatory requirements at a state/territory and federal level in Australia and internationally. There are also a range of industry standards that are covered under the Code.

The processes employed by industry at each point along the grain supply chain vary depending on the outcome required. Each industry participant manages their own operations based on the needs of their customers and their own internal procedures and systems.

It is anticipated that by following the Code, the grains industry and related sectors including government, researchers and consumers, will have confidence that Australia’s processes for grain production, storage and supply meet the expectations of the entire grain supply chain.

Further information:

y A copy of the Code is available on the GTA website: www.graintrade.org.au

G TA A N N U A L R E P O R T 2 0 1 2 / 1 3 41

AuSTRAlIAN GRAIN INDuSTRy CONFERENCE 2012

The 2012 Australian Grains Industry Conference was held from 31 July 2012 to 1 August 2012 in Melbourne and was highly successful with:

y Record number of attendees with over 940 individuals participating in the various conference events. This AGIC saw a wide spread of attendees from outside of the traditional commercial base, in particular, strong support from the financial sector, technical support services, government and input suppliers. This year saw a higher representation from the plant breeding, seed and input supplies companies. There was also a higher representation from customers (domestic and international) and processors. The Conference has continued to build its attendances each year from around 220 in 1999 to the current level of over 900.

y Record level of sponsor support

y Record level of media coverage

y Record number of trade exhibitors

y Record number of international delegates from countries including the United States, Canada, Vietnam, India, Singapore, Egypt, the United Arab Emirates, France and Indonesia.

AGIC has clearly established itself as the grains industry event of the year and is now a highly sought after venue for industry participants to come to in order to network with colleagues and hear high quality experts speak on key areas of interest that impact their businesses. It is also growing as a key venue for exhibitors to access a targeted customer base.

The grains industry continues to undergo considerable change and the conference provided an excellent opportunity for parties along the supply interact and develop relationships.

AGIC Program

The program was built around the theme of “The Commodities and Investment Jigsaw: Piecing it Together” which reflected the dynamic nature of the

industry where there is renewed interest in the commodities market, a rapidly changing risk environment and a new focus on the commodities sector from the investment community. The sector is becoming increasingly globalised and as the Australian wheat industry enters a new phase of deregulation, the region is increasingly a focus of the commodity and investment markets. During the conference the Canadian wheat industry deregulation occurred and the implications of this was one of the topics explored.

The two day technical program presented a range of high calibre international and domestic speakers covering topics such as the market outlook for grains and oilseeds; global investment opportunities for the commodities sector; deregulation of the Canadian wheat industry; end-user trends; strategies to reduce trade and logistics risks; and sustainability issues.

The 2012 Conference continued the highly successful “CEOs in Conversation” that was introduced in 2011 and this year the session featured the CEOs of GrainCorp and Cargill, two of the industry’s major marketing and handling companies.

The Conference also included a facilitated panel discussion on the Global Trading Environment and Risk Management and Leadership. It also continued the concurrent sessions that were introduced in 2010, providing the opportunity for delegates to participate in a diversity of sessions of interest.

Organisation

AGIC is co-hosted by Australian Oilseeds Federation, Grain Trade Australia and Pulse Australia. GTA acts as the Conference Organiser.

2003 2004 2005 20082006 2009 20112007 2010 2012

250

350

450

550

650

750

550

950

AUSTRALIAN GRAINS INDUSTRY CONFERENCE

G TA A N N U A L R E P O R T 2 0 1 2 / 1 342

Port Access code of conduct

Background

In 2011 the Australian Government reconfirmed its policy intent to transition the wheat export market to full deregulation, in accordance with amendments to the Wheat Export Marketing Act 2008 that were to be introduced to Parliament in 2012. It was announced that from 1 October 2014, the market will be fully deregulated and access to port terminal services will be governed by a voluntary industry code of conduct (the Code) and general competition law.

In February 2012 a Code Development Committee (CDC) was established to oversee the development of this process and report to the Minister for Agriculture, Fisheries and Forestry (the Minister) the Hon. Senator Joe Ludwig.

committee

The CDC elected Mr Tom Keene as the Chairman due to his independence and significant standing within the grains industry. Members of the CDC comprised of key stakeholders’ representatives from CBH, GrainCorp, Viterra/Glencore and ABA/Emerald, the Australian Grain Exporters Association (AGEA), Grain Producers Australia (GPA), National Farmers’ Federation (NFF) and Grain Trade Australia (GTA).

Passing of the Bill

The passing of the amendments to the Wheat Export Marketing Act 2008, on 29 November 2012, redirected the Committee deliberations. The Government determined that the Code would no longer be voluntary and governed by industry.

Rather, port terminal operators that export bulk wheat would, from the 1 October 2014, adhere to a mandatory port access code of conduct (the Code) prescribed under the Competition and Consumer Act 2010. Access to port services would be governed by the Code and general competition law and would be overseen by the ACCC.

development of the cdAc

The Committee reconvened on 12 December 2012*, as the Code Development Advisory Committee (CDAC), with the revised objective to provide the Minister with a consensus view on the key principles to be covered by a prescribed mandatory code of conduct for port terminal access in relation to the export of bulk wheat.

scope

The CDAC was advised that the Code would address the obligations of port terminal operators that export bulk wheat, in relation to access, provisions of port services by third parties, the

offering of standard terms and prices, and a framework to negotiate non-standards terms and prices.

The CDAC was also to consider a dispute resolution process and obligations on port terminal operators to comply with the ‘continuous disclosure rules’ as defined in the Wheat Export Marketing Act 2008 (as amended 2012).

Approval Process

On the 6 March 2013 the CDAC reached a consensus agreement on a set of key principles and detailed provisions for elements of the Code for the consideration by the Minister. Following approval from the Minister to progress work in drafting the Code, DAFF will engage with other government agencies to develop an exposure draft based on the work of CDAC.

During 2013, DAFF will undertake a public consultation process to provide an opportunity for interested parties to comment on the development of the draft code. The CDAC will continue to be engaged during this process.

A final draft will be submitted to the Assistant Treasurer for approval before it is prescribed as a mandatory code under section 51AE of the Competition and Consumer Act 2010.

Photo supplied by Viterra Limited

* In previous PDFs and the printed version of this Annual Report, this date was noted incorrectly as 12 December 2013.

G TA A N N U A L R E P O R T 2 0 1 2 / 1 3 43

GTA is non political, however, issues arise from time to time where there is common agreement amongst members.

DEPARTMENT OF AGRICulTuRE, FISHERIES & FORESTRy bIOSECuRITy GRAIN AND PlANT PRODuCTS ExPORT INDuSTRIES CONSulTATIVE COMMITTEE

GTA is represented on the Committee by the GTA CEO and Mr Geoff Barker, R V Broadbent & Sons (container specialist). This Committee is particularly focussed on the implementation of the reforms agreed during the Export Certification Reform Program.

The GTA CEO is also on the Finance subcommittee tasked with reviewing and commenting on the financial budget and outcomes of the grain export program.

Further information:

y Protecting Market Access – DAFF Biosecurity update – NewsInGrain, July 2013

y Member Update – No. 09 of 13 – Export Certification Reform Program (ECRP) – update

Submissions:

y Vol. 12 Plant Export Operating Manual

DEPARTMENT OF AGRICulTuRE, FISHERIES AND FORESTRy (DAFF)

Consultation with the Minister and DAFF covered a wide range of grain marketing related topics and was of a briefing nature with submissions as required.

Development of global low level Presence policies

This was an initiative of the Canadian Government. With the exponential growth in GM events globally, it is critical that countries adopt a LLP policy to ensure trade is not exposed to trace amounts of unapproved GM events in the country of import.

The EU policy of zero tolerance is a trade inhibitor and when copied by other countries will affect world trade. A bulk or container shipment of Australian conventionally bred grain could be adversely impacted, if trace amounts of an unapproved GM event were detected in the Australian grain, such as an event being residue from a previous cargo.

It is critical that all countries adopt a policy that allows trace amounts of an unapproved event in the country of import. Interestingly, there is a global tolerance for arsenic via CODEX.

Further information:

y Global Low Level Presence Policy – NewsInGrain – November 2012

y Adoption of Low Level Presence Policy by Australia – NewsInGrain – February 2013

Submissions to DAFF:

y FAO Low Level Presence (LLP) questionnaire

y Low Level Presence (LLP) Risk Management Policies for Transboundary Movements of Grains and Grain Products for Food, Feed or Processing

aDvocacy

Positioning statementDemonstrating industry self-reliance, GTA will be the proactive industry representative to advance independent, fact-based dialogue and advocacy for members and industry stakeholders. Governments, both local and global, will recognise GTA as the voice to resolve industry commercial policy matters.

G TA A N N U A L R E P O R T 2 0 1 2 / 1 344

Proposed International Standard for Phytosanitary Measures

IPPC have decided to proceed with the development of an international phytosanitary standard. This action is being driven by NGO’s and principally European and African countries. Current phytosanitary guidelines established by the IPPC are effective and all the major exporting and importing countries have adopted these for their trading requirements. Developments of new standards have the potential to inhibit trade.

Further information:

y Phytosanitary processes to be enhanced – NewsInGrain, July 2013

y Proposed International Standard for Phytosanitary Measures – NewsInGrain – February 2013

AuSTRAlIAN PESTICIDE AND VETERINARy MEDICINES AuTHORITy (APVMA)

Submissions:

y Trinexapac-ethyl in the Moddus Evo Yield & Quality Enhancer in relation to cereal exports

y Sulfoxaflor in the Insecticide Transform in relation to cotton seed exports

CODEx AuSTRAlIA

Submissions:

Reviewed 22 discussion papers and placed 3 submissions that specifically related to the grain industry.

y Aflatoxins in Cereals

y Maximum Levels For Deoxynivalenol In Cereals

y Maximum Levels of Lead in Cereals

SENATE STANDING COMMITTEE ON RuRAl AFFAIRS AND TRANSPORT

Submission:

y Inquiry into the ownership arrangements of grain handling.

INTERNATIONAl GRAIN TRADE COAlITION (IGTC)

As a major grain exporting country and as an aid to international grain trade facilitation, it is critical that there is a forum in place for importers and exporters to exchange viewpoints and to harmonise their commercial processes. The International Grain Trade Coalition is a forum for such interaction with GTA becoming a member in 2006 and being an active participant since.

IGTC is able to share information and develop briefing documents that are available for use by members in developing a member’s policy on a particular issue.

Major issues:

y Development of harmonised Global Low Level Presence policies

y Draft International Standard for Phytosanitary Measures

Photo supplied by Ian Armstrong

G TA A N N U A L R E P O R T 2 0 1 2 / 1 3 45

GTA has developed a Communications Strategy which calls for greater engagement with members and industry to ensure a common understanding of the role that GTA plays in the Australian grain industry. As a result, GTA:

1. Has placed the GTA Strategic Direction document published each year in July, on the website for review by industry participants and those interested in the direction of GTA.

2. Conducts over 40 meetings around Australia briefing members and key stakeholders on GTA and wider industry activities

3. Conducts Board Meetings in capital cities each year allowing direct interface with members.

4. Substantially increased engagement with federal politicians and policy advisers.

5. Refocused the member updates to only allow updates of a technical nature.

6. Developed, as required, specific industry briefing papers on issues requiring technical detail which are designed to educate as well as solicit comment.

7. Publication of NewsInGrain, three times per year which contains articles that are relevant to commercial grain activities.

8. Reviewed the conduct of the Australian Grains Industry Conference lifting the profile of the event through focussed and increased expenditure on speakers.

coMMunicaTions

Positioning statementGTA’s profile is recognised as an industry communicator by Government, media, financial institutions, other industry organisations and members. The industry is seen as transparent, collaborative and supportive of entrepreneurship. GTA will, via various communication mediums, disseminate its commercial resources and other material related to “facilitation of trade” to members and non members. This also relates to international sectors of the grain industry.

Photo supplied by Viterra Limited

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Financial Performance and Position

[extract]

G TA A N N U A L R E P O R T 2 0 1 2 / 1 348

Policies• Cash reserves will be 75% of previous year’s overheads with an additional

25% set aside for Board approved projects.

• Membership fees will fund ‘trade facilitation’ services & products i.e. the GTA secretariat and Technical Committees.

• All industry support products will be offered to members at a fee that will encourage participation but which also reflects a reasonable return on funds invested by the broader membership.

GTA recorded a profit of $248,843 with cash reserves of $976,597 which falls within the cash reserves policy set by the GTA Board.

The Board set a budget with a modest surplus of $ 11,824 allowing continuing investment in major projects such as the professional development program, the review of several key GTA contracts and a major review of the GTA Trade Rules.

Contributing factors to the final result:

• Therewasamodestincreaseoverbudgetformostrevenueactivitiessuchasthe Australian Grains Industry Conference, memberships and arbitration.

• Aprofitof$160,634(up27%on2011/12)forprofessionaldevelopmentdemonstrated the solid demand for these services and accordingly a Member Services Coordinator has been employed to better manage course development, review and delivery.

• Attentiontosecretariatexpenses(salaries,office,legal,accounting,etc.)ensured there was a 14% or $156,594 underspend against budget.

The following information was extracted from the financial statements of Grain Trade Australia Ltd and Controlled Entity for the year ended 30 June 2013 and is included for information purposes only.

A complete set of financial statements and independent Audit Report issued by LBW & Partners, Chartered Accountants, can be accessed on the Grain Trade Australia website.

G TA A N N U A L R E P O R T 2 0 1 2 / 1 3 49

Grain Trade Australia Ltd & Controlled Entity ABN 70 979 095 411

Profit and Equity As at 30 June 2013

-50,000

50,000

100,000

150,000

200,000

250,000

0

PROFIT AS AT 30 JUNE

$150

$250

$350

$450

$550

$650

$750

$850

$950

EQUITY ($000) AS AT 30 JUNE

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

20132004 2005 2006 2007 2008 2009 2010 2011 2012

G TA A N N U A L R E P O R T 2 0 1 2 / 1 350

Grain Trade Australia Ltd & Controlled Entity ABN 70 979 095 411

Statement of Comprehensive Income For the Year Ended 30 June 2013

2013 $

2012

$

revenue

consulting fees

Depreciation and amortisation expense

Direct expenses – arbitration

Direct expenses – conference

Direct expenses – professional Development program

Direct expenses – publications

Employee benefits expense

legal expenses

rental lease costs

special projects

Travel and accommodation

WQa expenses

other expenses

2,220,539

(58,619)

(16,210)

(129,115)

(338,686)

(96,905)

(8,404)

(558,576)

(14,347)

(60,826)

(207,629)

(92,996)

(16,991)

(338,826)

1,948,477

(38,930)

(10,057)

(182,219)

(263,031)

(202,040)

(7,791)

(553,224)

(27,104)

(58,512)

(38,884)

(109,213)

-

(360,374)

Surplus for the year before income tax 282,409 97,098

income tax expense - -

surplus for the year 282,409 97,098

other comprehensive income - -

Total comprehensive income for the year 282,409 97,098

comprehensive income attributable to:

Members of the parent entity

Minority equity interest

248,843

33,566

41,038

56,060

282,409 97,098

G TA A N N U A L R E P O R T 2 0 1 2 / 1 3 51

Grain Trade Australia Ltd & Controlled Entity ABN 70 979 095 411

Statement of Financial Position As at 30 June 2013

2013 $

2012

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 590,632 297,711

Trade and other receivables 184,706 316,873

Other financial assets 630,550 630,550

Other assets 263,200 442,377

TOTAL CURRENT ASSETS 1,669,088 1,687,511

NON‑CURRENT ASSETS

Property, plant and equipment 34,020 33,880

Interest in Wheat Quality Australia Ltd - -

ToTal non-currEnT assETs 34,020 33,880

ToTal assETs 1,703,108 1,721,391

LIABILITIES

currEnT liabiliTiEs

Trade and other payables 190,907 216,656

Deferred income 535,604 776,981

ToTal currEnT liabiliTiEs 726,511 993,637

ToTal liabiliTiEs 726,511 993,637

nET assETs 976,597 727,754

EQUITY

settlement sum

retained surplus

10

976,587

10

727,744

TOTAL EQUITY 976,597 727,754

G TA A N N U A L R E P O R T 2 0 1 2 / 1 352

Statement of Cash FlowsFor the Year Ended 30 June 2013

Grain Trade Australia Ltd & Controlled Entity ABN 70 979 095 411

Statement of Changes in Equity For the Year Ended 30 June 2013

2013

$

2012

$

CASH FLOWS FROM OPERATING ACTIVITIES:

receipts from customers 2,222,000 1,898,919

payments to suppliers and employees (1,928,695) (1,994,983)

interest received 47,096 42,738

net cash provided by (used in) operating activities 340,401 (53,326)

CASH FLOWS FROM OPERATING ACTIVITIES:

Distribution paid by controlled entities to outside equity interests (34,060) (54,000)

net cash used in financing activities (34,060) (54,000)

CASH FLOWS FROM INVESTING ACTIVITIES:

purchase of property, plant and equipment (13,420) (35,708)

purchase of held to maturity investments - (30,550)

net cash used in investing activities (13,420) (66,258)

net increase (decrease) in cash and cash equivalents held 292,921 (173,584)

cash and cash equivalents at beginning of year 297,711 471,295

CASH AND CASH EQUIVALENTS AT END OF FINANCIAL YEAR 590,632 297,711

2013 settlement sum

$

retained Earnings

$

Total

$

Balance at 1 July 2012 10 727,744 727,754

surplus for the year attributable to members of the entity - 248,843 248,843

Balance at 30 June 2013 10 976,587 976,597

2012 settlement sum

$

retained Earnings

$

Total

$

Balance at 1 July 2011 10 686,706 686,716

surplus for the year attributable to members of the entity - 41,038 41,038

Balance at 30 June 2012 10 727,744 727,754

G TA A N N U A L R E P O R T 2 0 1 2 / 1 3 53

ORDINARy MEMbER (TRADING)

level A1 (over 7 Million Tonnes)CBH GroupGlencore Grain Pty Ltd

level A2 (5–7 Million Tonnes) Cargill Australia Limited

level A3 (3–5 Million Tonnes)Emerald Group Australia Pty LimitedGraincorp Operations LtdAlfred C Toepfer International (Australia) Pty Ltd

level A4 (1.5–3 Million Tonnes)PentAg Nidera Pty Ltd

level b1 (1.0–1.5 Million Tonnes)Louis Dreyfus AustraliaBunge Agribusiness Australia Pty LtdGavilon Grain Australia Pty Ltd

level b2 (500,000–1 Million Tonnes)George Weston Foods LimitedInghams Enterprises Pty LimitedQueensland Cotton Corporation LtdRiverina (Australia) Pty LtdPlum Grove Pty LtdRidley Agriproducts Pty Ltd

level b3 (250,000–500,000 Tonnes)Agracom Pty LtdArrow Commodities Pty LtdCentre State Exports Pty LtdChinatex (Aust) Wool Co Pty LtdCOPRICEJBS Australia Pty LimitedRiordan Grain ServicesTouton Far East Pte LtdWalgett Special One Co-OpWilmar Gavilon Pty Ltd

level C (under 250,000 Tonnes)A & B Grains Pty LtdA T Waterfield & Son Pty LtdA W Vater and CoAdams Australia Pty LtdAgman Capital

Agmark CommoditiesAgriex Australia Pty LtdAGRIGRAINAllied MillsAMPS Agribusiness GroupAssociated GrainAuscott LtdAusrealt International Pty LtdAustralia Milling Group Pty LtdAustralian Grain Export Pty LtdAustralian Grain Growers Co-op LimitedAustralian Grain StorageAustralian Growers Direct Pty LtdAvigrain Produce B & L Seed and GrainBarooga AgriproductsBerriwillock Grain Storage

Co-Operative LtdBig River Feeds Pty LtdBlairs Produce CompanyBlue Ribbon Seed and Pulse ExportersBoort Grain Co-OperativeBrooks Grain Storages Pty LtdBroun and Co Grain Marketing Services

Pty LtdBungulla Farming Pty LtdC K Tremlett Pty LtdCameron Pastoral Company Pty LtdCascade Brewery Co Pty LtdCastlegate James Australasia Pty LtdCleveland AgricultureCobalt Commodities Pty LtdCommex International Pty LtdCoorow SeedsCremer Australia Pty LtdD & M StockfeedsDA Hall and CoDalby Bio-Refining LimitedDarwalla Milling Co Pty LtdDeacon Seeds CompanyDeckert Group Pty LtdDefiance Maize Products Pty LtdDemeter Cormack Pty LtdEast Coast Stockfeed Pty LtdEP Storage Pty LtdFeed Central Pty LtdFellows Nominees

FertInvest Pty LtdFletcher International Exports Pty LtdGardner Smith Pty LtdGavan Kerr Commodity Services Pty LtdGolden Harvest Grain ExportsGoldman Sachs Financial Markets Pty LtdGoodman Fielder LimitedGrain Link (NSW) Pty LtdGrain Link WA Pty LtdGrain Direct AustraliaGrainforce Pty LtdGrainpro Pty LimitedGreentree FarmingGrenfell Commodities Pty LtdGuy Roberts Commodities Pty LtdGV Grain & FodderHassad Australia Operations Company

Pty LtdHolland’sIloura Resources Pty LtdIndependent Grain Handlers Pty LtdIrwin StockfeedsJ K International Pty LtdJames Stock Feed and Fertilizer Pty LtdJerilderie Grain Storage & HandlingK M & W M Kelly & SonsKangaroo Island Pure Grain Pty LtdKennett Rural Services Pty LtdLachlan Commodities Pty LtdLaharum Bulk Handling CoLangdon Grain LogisticsLaragon Almond Processors Pty LtdLaucke Flour Mills P/LLDC Enterprises Australia Pty LtdLempriere Grain Pty LtdLPC Trading Pty LtdMahony’s Transport ServicesMalteurop Australia Pty LtdMars Petcare AustraliaMarubeni Australia LtdMatthews Transport and Grain TradersMax Grains Pty LtdMC Croker Pty LimitedMcGregor Gourlay Agricultural ServicesMelaluka Trading Pty LtdMilross GrainsMitsui and Co (Australia) Ltd

MEMbErs

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Moore Bulk StorageMoulamein Grain Co-Operative LtdMountain Industries Pty LtdMSM Milling Pty LtdMurrumbidgee Grains Pty LtdNamoi Cotton Co-OperativeNandaly Grain Co-Operative LtdNewcastle Agri Terminal Pty LtdNoble Resources Australia Pty LtdNorthern Riverina Grains Pty LtdOakey Holdings Pty LtdOOMA Enterprises NSW Pty LimitedOrigin Grain Pty LtdPB Seeds Pty LtdPeaCoPearson’s Grain Pty LtdPentarch Grain Pty LtdPeters Commodities Pty LtdPhoenix Commodities (Australia) Pty LtdPopina (Vic) Pty LtdPreston GrainPremium Grain Handlers P/LPulse Association of the South East

(PASE) IncQuadra Commodities Pty LtdQuirindi Grain & ProduceR V Broadbent & SonsRegal Seed & Grain P/LReid Stockfeeds Pty LtdRivalea (Australia) Pty Ltd –

Animal NutritionRiver City Grain CoRiverina Oils & BioEnergy Pty LtdRobinson Grain Trading Co Pty LtdRoty Grain StoreRuddenklau Grain Pty LtdRural Logic (Aust) Pty LtdSeedhouse TasmaniaShannon Bros Bulk HaulageSilo Bag Grain (NSW QLD) Pty LtdSocieta Cofica Pty LtdSouthern Cotton Trading Pty LtdSouthern Grain Storage Pty LtdSouthern Stockfeeds (Operations) Pty LtdStarcom Grain Pte LtdSumitomo Australia Pty LtdSummer Hill GrainsTamma GrainsTasmanian Agricultural Producers Pty LtdTasmanian Stockfeed Services P/LThe Wimmera Grain CompanyTwynam Pastoral CompanyUnigrain Pty LtdUnited World Enterprises Pty LtdW B Hunter Pty LtdWL & LK Fay GrainWard McKenzie Pty Ltd

Whitty ProduceWilken GrainWimpak Export Company Pty LtdXLD Grain Pty Ltd

TRANSPORT OPERATOR

Gehrke Grains and Transport Pty LtdWakefield Grain Export Services

bROKER

MediumAllied Grain Pty LtdBrightcom Australia Pty LtdCereal Milling Services Pty LtdFC Stone Australia Pty LtdGRAINassist AustraliaGrainsplus NSWHorizon Grain Brokers Pty LtdIgrain.com.au Pty LtdMcDonald Pelz Australia Perkins Commodity BrokersTeague Australia Pty LtdWimmera Mallee Grain Services

SOlE OPERATOR

AgLink – CMSAustralian Brokerage International P/LCogeser (Australia) Pty Ltd Knight CommoditiesLink Brokering Pty LtdMallon Commodity BrokeringShearwater International Pty LtdWoodside Commodities Pty Ltd

CORPORATE

largeASX LimitedAustralia And New Zealand Banking GroupCommonwealth Bank of AustraliaDairy Australia LimitedGrains Research & Development

CorporationMeat & Livestock Australia LimitedRabobank

MediumAgfarm Pty LtdAgrifood Technology Pty LtdAgrisk Management Pty LtdCommodity Inspection Services

(Australia) Pty Ltd

Foss Pacific Pty LtdHolman Fenwick WillanIntertek Macpherson + Kelley LawyersNorton GledhillNZX – CLEAR CommoditiesSBA LawSGS Australia Pty Ltd

SmallAg Scientia Pty Ltd Agvise Management ConsultantsAustralian Superintendence CompanyBarley Australia LimitedCloud Break Advisors Pty LtdDaily Grain Pty LtdDelta Agribusiness Pty LtdEyre Peninsula Integrated Commodities

Pty LtdFarmanco Marketing Pty LtdFarMarCo Australia Pty LtdFinesse Solutions Pty LimitedHarvestCheck Pty LtdIKON Commodities Pty LtdMarketAg Pty LtdMcMullen Consulting Pty LtdMirfak P/LMurray Goulburn Trading Pty LtdO’Halloran Deal LawyersOMIC MelbournePerten Instruments Australia Pty LtdPinnacle Commodities Pty LtdPlanfarm Marketing Pty LtdPrimal Foods GroupRural Directions Pty LtdSGA Solutions Pty LtdTen Tigers

INDuSTRy ASSOCIATION

Agforce QueenslandGrain Growers LimitedGrain Industry Association of WAGrain Producers Australia LtdGrain Producers SA LtdNSW Farmers AssociationVictorian Farmers Federation

MERCHANT ASSOCIATION

Grain Industry Association of SAGrain Industry Association Of VictoriaQueensland Agricultural Merchants Inc.Grain NSW Inc.

G TA A N N U A L R E P O R T 2 0 1 2 / 1 3 55

Grain Trade Australia LtdPostal: PO Box R1829 Royal Exchange NSW 1225 AustraliaStreet: Level 10, 66 Hunter St, Sydney NSW 2000Phone: +61 2 9235 2155 | Fax: +61 2 9235 0194

www.graintrade.org.au

Cover photo supplied by Jan Cameron Smith