World Grain - September 2016 - 86

FEATURE: 2016 AGIC LOOKS AT TRADE OPPORTUNITIES

presented a keynote address. The ACCC is responsible for
ensuring markets are fair and not subject to anti-competitive
behavior. While it is involved in many sectors and areas, the
ACCC's role as bulk export port regulator is one that attracts
the most attention from growers and industry stakeholders.
Keogh explained agriculture needed to be competitive if it
was to capture future opportunities. Citing Australia's share
of Asia's agricultural commodity market, he said it was not
possible for it to be the region's food bowl.
"Australia's chances of even supplying a small part of the
additional demand that we're seeing emerge out of places
OLNH $VLD LV SUHWW\ GLI¿FXOW WR LPDJLQH JLYHQ WKDW ZH VXSply about 6% of net agricultural exports to North Asia
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said. "We're actually only a small player in those agricultural markets. Countries like the U.S., Brazil, Argentina,
Uruguay, Kazakhstan, Ukraine, Denmark and Canada are
actually growing their market share in those markets faster
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Keogh explained it was the ACCC's role to provide the regulatory environment that would place the industry in the best position to capture additional market by ensuring the market supply
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Critical to this is its role in the monitoring and regulation of
Australia's eight bulk grain terminals and how new operators
may be brought into the industry, creating a more competitive
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Mick Keogh, newly appointed commissioner of the ACCC, talked about the
"ACCC enforces the regulations in the code and moniorganization's role in the Australian grain industry.
WRUV FRPSOLDQFH´ KH VDLG ³,W KDV D VSHFL¿F UROH LQ DVVHVVer a value-added premium product. Driving this push has been ing and making determinations on the degree of competition
historic low ocean freight rates due to excess shipping capac- WKDWH[LVWVZLWKLQDSDUWLFXODUSRUWDQGWKDWWKHUHLVVXI¿FLHQW
ity and the erosion of Australia's freight advantage into Asia. FRPSHWLWLRQ´
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He said the ACCC's requirement on port operators to pubthe Australian product is worth the premium. Palmquist said lish shipping data and stocks at port has been loosened with the
competing with the Black Sea countries and Russia on price emergence of new port operators, particularly on the east coast.
would be a race to the bottom, and instead the industry should
"The infrastructure required for that technology and innobe focused on producing a product that was worth a premium. vative design provide opportunities for new entrants to take
Crane mentioned a Chinese customer who was launching a on the incumbents and to develop a more complicated compremium craft beer into the Chinese market. He said this was SHWLWLYHHQYLURQPHQW´.HRJKVDLG³6KRXOGWKLVUHDFKLWVIXOO
a good example of Australia supplying malt barley to a premi- SRWHQWLDOPDQ\JURZHUVZLOOHQMR\WKHEHQH¿WVRIDGGLWLRQDO
um market that was looking for transparency and quality that export options marketing arrangements and alternative supply
was Australia's competitive advantage over its competitors.
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He said Australia could compete on cost of production but
would need to lift yield by 10%, adding that such an effort NEEDING AN AUSTRALIAN GRAIN BRAND
would require investment in plant varieties and the sharing of
Another panel discussion examined the role of industry repinformation among growers across state borders. Crane said resentative groups and what the industry should look like in
Australia needed an organization that could work on govern- the future. The focus of this discussion was largely on a need
PHQWWRJRYHUQPHQWUHODWLRQVWRPDQDJH³ÀDUHXSV´EHWZHHQ for an Australian grain brand and what industry functions each
trading partners. He said this would help Australia compete.
group should perform.
Joining a panel discussion on the future of the indusACCC'S ROLE IN AIDING EXPORTS
try's representative bodies was Richard Simonaitis, CEO of
Mick Keogh, newly appointed commissioner of the $XVWUDOLDQ ([SRUW *UDLQ ,QQRYDWLRQ &HQWUH $(*,& ZKR
Australian Competition and Consumer Commission (ACCC), said value drives the entire industry regardless of whether it
86

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