Grain Trade Australia scores Grain Growers over ‘unsubstantiated claims’

National trade association Grain Trade Australia (GTA) is calling out lobby group Grain Growers Limited (GGL) over its calls to investigate Australian grain pricing, saying that it has withheld the internal report they used for justification.  

“It is difficult to make any comments on something that we have not seen,” Grain Trade Australia CEO Pat O’Shannassy said. 

“It would seem a little opportunistic to make substantial claims without providing the evidence upon which they are made”. 

O’Shannassy said GGL “rushed to the media to capture headlines and make unsubstantiated claims” instead of engaging grain supply chain operators and grain marketers.  

“In the end, this approach really does the grain sector as a while a disservice, rather than a constructive service,” O’Shannassy said.  

Last week, GGL said the prices paid for Australian wheat in 2021-2022 were significantly lower than those sourced elsewhere and urged the federal government to launch an inquiry on the matter.  

GrainGrowers proposed a Department of Agriculture and Fisheries or independent review, or a Senate inquiry, instead of an ACCC investigation. 

GGL referred to a research paper that they presented to the Federal Government late last year, which allegedly showed a $2.6 billion loss to the wheat industry.  

“Growers have been raising the issue for some time, and the report provides quantitative evidence supporting the need for government to perform an in-depth investigation,” said GGL CEO Shona Gawel. 

“To get to the heart of the matter, we believe any investigation should include the end-to-end grains supply chain nationally, originating at farm gate through to export and domestic channels,” Gawel said.  

‘No Need for Expensive Inquiries’ 

In a statement, GTA said there was no need for “expensive inquiries,” saying that the wheat supply chain is one of the most examined supply chains in the country. Furthermore, GTA said inquiries are only appropriate when there is a clear evidence of market failure or anti-competitive conduct.   

“In our view, the data and evidence show that rather than market failure, the grain industry has bever been in better shape,” GTA said.   

Instead of launching an investigation, the GTA said the low prices of wheat is best chalked up to market competition.  

“Just because a grower does not get the price they want ot think they should get, is not an example of market failure. In this situations, growers hoping for higher prices are also facing competition, not from other growers in their own local region.”  

“The question really is what is a fair price and to whom? The market determines the price, and the market is local,” the GTA said.