World Grain - October 2011 - (Page 35)

FEATURE: IN IT FOR THE LONG HAUL Deregulation shapes shipping market in Australia In the U.S., the use of containers to ship grain has largely been driven by freight rates in the container shipping and bulk shipping markets. In Australia, deregulation of the wheat export sector has been the critical factor. The Australian Wheat Board was privatized in 1999. This set the scene for the first increase in exports by container, although exports had to “complement rather than compete with” the Australian Wheat Board International’s (AWBI) single desk marketing strategy, according to the statutes put in place at that time. The system was overseen by the Wheat Export Authority to which container and bag exporters had to apply for shipment approval. Under this scheme, each year the Wheat Export Authority typically received export applications from non-AWBI exporters totaling 2 to 3 million tonnes and approved 30% to 60% of these, or about 4% to 8% of total wheat exports, according to Australia’s Productivity Commission, which studied the sector last year. “However, actual exports by non-AWBI exporters made up only about 1% to 5% of total wheat exports,” the commission report said. “In the final two years of non-bulk export regulation, the total tonnages sought by non-AWBI exporters increased to 7 million and 17 million tonnes (including bulk and non-bulk export proposals),” the report said. “However, total consents for exports by non-AWBI exporters and actual amounts exported in terms of tonnage did not rise significantly.” The wheat export market was only truly opened up in October 2007, when, as part of ongoing deregulation, non-bulk wheat exports using containers and bags were fully liberalized. “Containers and bags were totally deregulated in 2007,” said Rosemary Richards, executive officer of the Australian Grain Exporters’ Association. ”There are no controls in place today.” Deregulation has enabled container exports in containers or bags with only limited regulatory oversight. By contrast, bulk exporters have to first be accredited as being ‘fit and proper’ companies by government body Wheat Exports Australia, a process / World Grain / October 2011 which some have claimed offers an unfair advantage to non-bulk exporters because of the substantial cost of accreditation. Since 2007, wheat exports using containers and bags have gathered momentum, with Indonesia, Chinese Taipei, Malaysia, Thailand, Bangladesh and China now all major buyers. In the 2008-09 marketing year, wheat exports in bags and containers reached 2.36 million tonnes, out of total exports of 14.57 million tonnes. In 2009-10, this increased to 2.42 million tonnes out of 14.66 million tonnes of total exports. THE 25K BPH TRANSPORT CONVEYOR Our new high capacity 25,000 bph transport conveyor features an upgraded control box for enhanced performance and one-man operation. Add the industry’s most safety-focused features plus 15 ft. drive over ramps, and the difference is clear. This is power that works. Powerful Safety focused Versatile 515-266.7264 For more information, see Page 106. 35

Table of Contents for the Digital Edition of World Grain - October 2011

World Grain - October 2011
Grain’s influence on global population trends
News review
Focus on Turkey
In it for the long haul
Deregulation shapes shipping market in Australia
Port developments
News Roundup
Thai rice plan controversial
A growing force in corn
Is biotech blooming in Europe?
A battle for China
Marketing maneuvers
Biofuels News Review
A new imaging method for millers
U.S. soy crushers face challenges
IAOM Eurasia
Flour trade prospects improve
Ridding your facility of rodents
Intersystems expanding Omaha facility
OCRIM school educates millers from around the world
Perten Instruments acquires TexVol Instruments
Food Protection Alliance names Schmitz as director
SternMaid to participate in Food Ingredients Europe
Insta-Pro International names Latin American sales manager
Alltech realigns leadership team
Advertiser Index

World Grain - October 2011