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