THE CORE PRINCIPLES OF YOUR SINGLE DESK

The Federal Government has announced a review of future wheat marketing arrangements.

The Wheat Export Marketing consultative Committee has requested that growers comment on the key principles of Australia's wheat marketing arrangements that are most important to them.

There are six core principles that have underpinned the development of wheat marketing in Australia and these should be considered during the debate about the current structure and possible future models

THE CORE PRINCIPLES OF THE SINGLE DESK ARE:

1. 1. Collective market power in international markets
   

2. 2. Price stabilisation for all growers across Australia
   

3. 3. Market clearing mechanism for all volumes and grades of wheat across Australia
   

4. 4. Maximisation of net pool returns to pool participants
   

5. 5. Shared risk management of commodity and currency exposures
   

6. 6. Shared funding of industry services that enhance market access and development
   

1. •Collective marketing through the National Pool provides market power that helps Australian Wheat compete in markets that are distorted by subsidies, single desk buyers and multinational trading conglomerates.
   

2. •The National Pool, as a receiver of last resort, provides an important market clearing mechanism for all volumes and grades of wheat.
   

3. •The Estimated Pool Return offered by the National Pool provides price stability
   

4. •Currency and commodity hedging through the National Pool helps spread risk and achieves economies of scale
   

5. •AWB International provides many important industry services not provided by anyone else. These include:
   

§  - Wheat receival standards – Quality assurance function and regulatory requirements

§  - Wheat varietal classification- framework providing market signals for new varietal development

§  - Crop Shaping activities-  Grading systems and incentives for matching production to market and customer demands

§  - Australian crop report- collation of data on wheat grades to inform the market

§  - Technical market support- direct technical assistance to customers to assist understanding of the quality of the crop from year to year

§  - Promotion of Australian  Wheat- promotion of the key advantages and customer value propositions of Australian wheat against our competitors

§  - Trade Advocacy- input into international regulatory developments to ensure Australian wheat is not disadvantaged by National and International regulatory frameworks

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