THE GRAIN trade and production sector remain opposed on grower calls for an Australian Competition and Consumer Commission inquiry (ACCC) into the grain supply chain.
During a session at the recent Australian Grains Industry Conference (AGIC) Grain Producers Australia (GPA) southern director Andrew Weidemann reaffirmed his group's desire for an inquiry.
"It is something that has not been done since the deregulation of the wheat market and we feel it would be worthwhile to find out if the industry is working as well as it could be," Mr Weidemann said.
"Only by having the ACCC involved with powers of compulsion in regards to information will we get the full picture and that is why we continue to lobby government to get the ACCC to look into it," he said.
However, chief executive of Grain Trade Australia, the trade's peak body, Pat O'Shannassy said the only reason for such an inquiry would be market failure and strongly denied this was the case.
"There has always been a sector of the grower community who feel hard done by and feel the trade gets a bigger slice of pie than it deserves," Mr O'Shannassy said in a strongly worded statement.
"A desire for a bigger slice of the pie is not evidence of market failure," he said.
He was backed up by long-term grains industry executive David Johnson.
Mr Johnson, Emerald Grain chief executive, said during the session with Mr Weidemann that he did not think a review would achieve anything.
"I just don't quite know what the reason for having the ACCC come in would be, there is no market failure," Mr Johnson said.
However, Mr Weidemann said GPA wanted an independent body to see whether there was a power imbalance in the industry and whether the production sector was being treated fairly.
"We feel that over the years growers have had to shoulder more and more of the risk or sell at discounted prices at harvest," he said.
Mr O'Shannassy said growers had access to more grain market information that ever before.
"Growers have never had so many options to market their crops."
"They've never had such ready access to impartial information and advice, whether they take advantage of those options is up to them."
He said contrary to the GPA viewpoint the industry had never been in better shape.
Mr O'Shannassy acknowledged there had been supply chain issues in moving consecutive mammoth crops but said he felt the industry had responded well to the challenge.
"There have been two exceptional seasons requiring the industry to work hard to move and export more grain than ever before."
And he said farmers had a rare opportunity to pair above average production with well above average pricing.
"Even with record crop production, grower cash prices are historically high, with independent analysis by Profarmer Australia showing grower prices are between the ninth and 10th decile."
Prior to the election the ALP gave support for the idea of an inquiry.