Nationals Senator, Fiona Nash, said the federal Treasurer must act in the national interest by rejecting a multi-national’s takeover of AWB’s commodities marketing operation.
The US-based company, Cargill, announced its plans to buy AWB’s grain commodities business from Agrium last December. It includes the former grain marketing and pool operations, international grain trading business, grain distribution and storage assets and international operations.
Senator Nash said there are legitimate concerns among farmers, particularly in NSW, that it would lead to a duopoly between Cargill and Graincorp which would own and control numerous grain sites.
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“I share their concern that these two companies could end up with significant bargaining power leading to less competition and lower prices,” she said.
“There is also concern that Cargill would own a 50 per cent interest in the Melbourne Port terminal further strengthening its dominance in the supply chain.
“Farmers are also worried that the reputation of Australian premium grain is at risk if there are no testing procedures or if it’s mixed with grain from other countries for export.”
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Cargill’s takeover bid was approved by the ACCC, which failed to provide a detailed analysis of the impact on the grains market. It is now before the Foreign Investment Review Board that’s due to report any day. But the Treasurer, Wayne Swan, will decide it if should or shouldn’t proceed.
Senator Nash has written to the Treasurer urging him to meet with the NSW Farmers’ first before making his decision.
“It is the Treasurer’s responsibility to meet with farmers and hear their concerns. He should also ask Agrium as to whether there was interest from an Australian-owned company in the tender process and if so, why it was rejected,” she said.
“The Treasurer should seriously consider the merits of a proposal for an Australian grower-owned cooperative as an alternative, that’s been proposed by the NSW Farmers’ Association.
“This is not just about the future of our grain growers but the future of Australia’s food production and food security.”
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