THE MANDATORY code of conduct for the operators of bulk wheat port terminals will be expanded to encompass all bulk grain exports if the recommendations of the Wheat Port Code Review Taskforce are taken up.
The grains industry is currently trying to digest the findings of the review taskforce, which were handed down last week.
There were 12 recommendations with the move to include all grain one of the headline findings.
Other big talking points out of the review was the decision not to recommend the code being broadened to include bulk handlers’ upcountry networks and the recommendation that stocks reporting provisions in the code be removed.
The production sector has long argued there needs to be an increase in stocks reporting by the major bulk handlers, saying more information about stocks would help grain producers with their marketing decisions.
However, the recommendation said the fragments of information the bulk handlers were required to provide under the current arrangement had little, if any, relevance on their own and recommended the bulk handlers did not have to provide market information.
Grain producer groups were generally pleased with most of the recommendations.
“It had a lot of what we asked for,” said Grain Producers Australia chairman Andrew Weidemann.
“Getting the code across all major commodities and not just wheat is a good thing, acknowledging there are other valuable grain industries that need to be protected by the code,” Mr Weidemann said.
He said he was disappointed that stocks information was not addressed within the report, but acknowledged the code of conduct may not be the right place to enshrine the need to report on stocks positions.
“We’ve seen just of late with the push for some to import grain, they are saying they don’t know how much grain is really out there, it shows stocks reporting is really important, but perhaps the code is not really the vehicle to implement that.”
Newly appointed Grain Growers chairman Brett Hosking agreed.
“The stocks reporting in the code as they stood were not really providing any value, so perhaps we look at that topic another way.”
He said he would like to see any future reviews into the grains sector look at the industry holistically rather than the export focus that comes with the port access code review.
“The industry is changing, especially on the east coast with the domestic market, so focusing only on the supply chain moving grain to port is probably not where we need to be.”
Federal Minister for Agriculture David Littleproud labeled the review process a success.
“We listened to farmers, bulk handers, exporters and experts to make sure the code is giving exporters fair and transparent access to port terminals,” Mr Littleproud said.
From the bulk handling perspective, GrainCorp corporate affairs manager Angus Trigg said there were some wins from the review for his company.
“It’s positive that the code has not been extended into the country, as it’s important not to hinder the competitiveness of Australian grain exports through unnecessary regulation,” Mr Trigg said.
Western Australian bulk handler CBH is exempt from the provisions of the code but has been watching developments carefully.
“CBH is reviewing the department’s final report and recommendations,” a company spokesperson said.
“CBH will determine the impact on our Western Australian growers, and further consider our options going forward.”
Glencore / Viterra, the major bulk handler in South Australia is also currently reviewing the report.