wea’s statement to senate the wea currently has two responsibilities: –monitoring awb(i)’s...
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WEA’s Statement to SenateWEA’s Statement to Senate• The WEA currently has two responsibilities:
– Monitoring AWB(I)’s export performance and reporting on benefits to growers, and
– Controlling non-AWB(I) exports (less than 5%).
• WEA does not monitor commercial conduct of AWBL.
• WEA supports Cole’s recommendation of a review of powers, functions and responsibilities.
Comments on Growers ReportComments on Growers Report• Generally favourable media, for example ProFarmer
said: “The latest Growers Report positions the WEA as an authoritative, independent and very valuable industry resource (ie. what it should have been in the first place) that should be utilised as a circuit-breaker in the current debate.”
• Few unfavourable comments, for example:“There was more examples of political manipulation in the anti-AWB views expressed by the Government appointed Wheat Export Authority in the 2006 Grower Report.” (J. Munro, Stock & Land 1.2.07)
Comments on Growers ReportComments on Growers Report
• 443 reply cards to date:Majority found it useful to growers …– Well done- keep the information flowing– Easy to read format – Very thorough, Thank you! – More information on how the fee to AWB Ltd. was
reduced from $65.1m to $39.5m – The report to growers has been long overdue.
Keep the information flowing to Wheat growers... "Well Done!"
Key FindingsKey Findings• Supply chain costs increased by 3% and
are higher in QLD and NSW.• AWB(I) obtained a premium of between
$0.80 (AH) and $6.16 (feed) per tonne (net).
• AWB(I) outperformed WIB by $18.50 (gross).
• AWB Ltd’s foreign exchange performance protected National Pool.
Key FindingsKey Findings• No evidence of ‘dumping’ lower grade wheat
into Pool.• Non-AWB(I) exporters gained better prices for
container and bag exports (further analysis provided in
the Addendum). • Shipping delays to India cost AUD 9,576,901.• AWB Ltd’s market power unable to influence
country storage and handling costs (addressed further in the Addendum).
• All 2004-05 sales contracts analysed were reconciled.
Key FindingsKey Findings• Remuneration provided AWB Ltd an increase
share of National Pool equity.
Services AgreementServices Agreement• Agreement for the provision of services to
AWB(I) by AWB Ltd.• Current agreement is still in place.• Termination provision exists.• Dispute resolution.• New Service Agreement currently on hold.
WEA non-AWB(I) export consent WEA non-AWB(I) export consent statistics Jan 04 to Dec 05statistics Jan 04 to Dec 05
Source: WEA Data
No. of applications
received
No. of consents
issued No. of consents shipped against
Consents 794 689 287
Tonnes Approved 2,118,685
Tonnes Shipped 474,285
Information provided to AWB(I)Information provided to AWB(I)
• Country of destination
• Tonnage
• Grade(s) of wheat
• Shipping period
• Shipping method
• Additional information (only given to AWB(I) if the applicant agrees in writing)
Total exports in bags and containersTotal exports in bags and containers
050000
100000150000
200000250000
300000350000
400000450000
500000
98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06
Non-AWB(I) AWBI
Source: WEA and ACS Data.
Non-AWB(I) top 10 countries container Non-AWB(I) top 10 countries container and bag exportsand bag exports
Source: ACS Data 1September 05 to 30 December 06.
Vietnam, 185529
Myanmar, 35153
Thailand, 28478
China, 27077
Malaysia, 22587
UK, 10442
Mauritius, 10130UAE, 2544
Phillipines, 4244
Indonesia, 7875
AWB(I) top 10 countries AWB(I) top 10 countries container and bag exportscontainer and bag exports
05000
100001500020000250003000035000400004500050000
Source: ACS data 1 October 2005 to 30 September 2006
AWB(I) top 10 countries for bulk exportsAWB(I) top 10 countries for bulk exports
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Source: WEA & ACS Data from 1 October 2005 to 30 September 2006
Addendum to the Growers Addendum to the Growers Report 2006Report 2006
• On website by end of March 2007:• Management of 06-07 Pool• Interaction – pools and drought• Tigris debt issue• Monitoring AWB(I) – remuneration, OPI• Infrastructure – storage and handling, rail• Non-AWB(I) analysis
THE ENDTHE ENDThank you