Nationals Senator, Fiona Nash, said the Government has abandoned Australia’s grain growers by the Treasurer’s apparent tick-off of the Cargill bid to buy the former AWB grain commodity business.
Cargill, a US-based company, says it’s been informed by the Foreign Investment Review Board that the federal government has no objections of its proposed acquisition of the business from Agrium.
“As of late this afternoon there’s been no such announcement on the FIRB or Treasurer’s websites and no public comment by Wayne Swan either,” Senator Nash said.
“It is outrageous for growers to hear this news via Cargill, not the FIRB or the Treasurer. The proper process is that the FIRB is supposed to examine foreign investment proposals and make recommendations to the Treasurer, who has the final say.
“The government waited on FIRB’s recommendations on Singapore’s takeover of the ASX before it made a decision on the sale, but not when it came to a foreign takeover of our farming interests. This decision to allow Cargill to buy the former AWB grain commodities business is just as much in the national interest as the ASX sale.
“It is understood that Cargill, as a private company, will not be subject to the same transparency as a publicly-listed company.”
Senator Nash said if the takeover has been cleared, it will mean Cargill will control the majority of Australian grain operations. Graincorp is the other major player, potentially leading to a duopoly.
“It will become the Coles and Woolworths of grain trading, potentially leading to less competition and lower prices,” she said.
“Growers are rightfully concerned this will also lead to foreign dominance in the marketing of Australian grain. I fully support the strong position of the NSW Farmers’ Association against this sale.
“The Treasurer, Wayne Swan, has the authority to stop the sale from happening. It appears he is completely clueless. If the Treasurer had any understanding whatsoever of the importance of a sustainable future for our grain growers, and of the importance of Australia’s future food security, and he would step in and stop the sale.”
There are currently no comments, be the first to post one.