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					EXPORTING WHEAT FROM AUSTRALIA


 ASOCIACIÓN DE COOPERATIVAS ARGENTINAS
   ______________________________
          14 NOVEMBER 2008




                                         1
      WHEAT EXPORTS AUSTRALIA

•   Wheat Export Marketing Act 2008 commenced on 1July 2008
•   The ‘single desk’ export monopoly on bulk wheat has ceased
•   Wheat Exports Australia (WEA) established as the export regulator to
    operate the wheat export accreditation scheme
•   Legislative objectives:
      • To promote the development of a bulk wheat export marketing
        industry that is efficient, competitive and advances the needs of wheat
        growers
      • To provide a regulatory framework in relation to participants in the bulk
        wheat export marketing industry.
•   Developed to introduce competition into the wheat industry




                                                                             2
   BULK SCHEME OVERVIEW


 Purpose: To attest that an exporter is a fit and proper company
                 to export bulk wheat from Australia


The Bulk Scheme does not in anyway:
   – Regulate shipments of wheat in bags or containers (<50 tonnes)
   – Indemnify exporters
   – Provide any guarantee the exporter will remain financially viable



  WEA does not in anyway regulate the quality, variety or grade
        specifications of wheat exported from Australia




                                                                         3
    NEW EXPORT ARRANGEMENTS


•   AWB International no longer holds any special status
•   Australian wheat quality will be managed by the industry and not
    government
•   WEA does not indemnify accredited exporters or provide any
    guarantee they will remain financially viable
•   Nineteen exporters have now been accredited by WEA
•   Exporter names and conditions of accreditation are published
    online www.wea.gov.au
•   Multiple exporters of Australian wheat means greater choice for
    international customers




                                                                      4
AUSTRALIAN WHEAT INDUSTRY OVERVIEW




                                   5%

                       44%
                             19%
                                   19%


                                        13%

   Map Source: ABARE



                                              5
    AUSTRALIA and ARGENTINA – 2007/08

                           Australia                  Argentina

Wheat produced:    13 million tonnes         16.3 million tonnes
Wheat exported:    7.5 million tonnes        10.2 million tonnes
Domestic use:      6.4 million tonnes        5.3 million tonnes
Area planted:      12.4 million hectares     5.7 million hectares
Average yield:     1 tonne / hectare         2.8 tonnes / hectare
Regulation:        Deregulated except bulk   Deregulated
                   wheat accreditation
Export charges:    No taxes (Wheat Export    28% export tax
                   Charge – $0.22/tonne)
Total ag sector:   2.8% GDP                  9.4% GDP




                                                                    6
     CASE STUDY - CBH
•   Co-operative Bulk Handling in Western Australia
     •       controlled by over 5,500 grower-shareholders
     •       net assets of more than AUD1 billion
     •       Annual turnover of more than AUD900 million
•   Storage and handling:
         •   200 receival sites across the State
         •   Total capacity over 19 million tonnes
         •   11 million tonnes received from harvest
         •   Grain transported to 4 port terminals to meet volume and quality
             requirements
•   Investment:
         • 5 Indonesian and Malaysian flour mills
         • Vietnamese grain terminal and flour mill
         • Profits are re-invested in facilities and infrastructure

                                                                                7
     CASE STUDY - CBH
•   Marketing:
      • Operates various marketing pools on behalf of growers
      • Main license to export barley, lupins and canola from WA
      • Large exporter of wheat accredited by WEA
•   Shipping:
      • Joint venture with shipping company
•   Other activities:
      • Quality assured grain
      • Research and Development
      • Diversification




                                                                   8
    FUTURE FOR AUSTRALIAN WHEAT EXPORTS


•   Multiple accredited exporters competing to buy wheat from
    Australian growers
•   Greater innovation and choice for buyers and sellers
•   Industry self- regulation
•   Greater on-farm storage
•   Ongoing investment in grain research
     •   New wheat varieties
     •   Improved water use efficiency and farming methods
     •   Better milling quality of Australian wheat




                                                                9
  Further information


Contact details:

 Caroline Rhodes
 Senior Manager - Operations
 Wheat Exports Australia
 Email      caroline.rhodes@wea.gov.au
 Phone      +61 2 6202 3400
 Website    www.wea.gov.au




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