Wheat row rolls on

Australian wheat exporter AWB Ltd has said that it is in merger talks with rival ABB Grain Ltd.

The Australian Competition and Consumer Commission is examining plans by Western Australia’s CBH Group that could see the state’s grain growers locked into the company’s supply chain.

Regardless of the causes of climate change, it is now an accepted fact that weather patterns are far less predictable than they used to be. This will lead to a change in grain export patterns, both indirectly and directly.

Following a pledge by Queensland premier Peter Beattie to invest A$570 mill to upgrade port, rail and marine infrastructure in the state, focusing mainly on the Blackwater rail system and Gladstone’s coal export terminals, the Western Australia (WA) government has promised investment of A$300 mill in eight ports over four years. This is earmarked mainly for a series of major projects expected to come on stream at bulk ports, although funds have also been set aside for container and general cargo

One unintended byproduct of the massive drought now afflicting major parts of Australia’s rich farming areas may well be a halt to seemingly reckless expansion programmes mounted by the country’s grain handlers and marketers.