GTA Board
2010/2011 GTA Board
Chairman: Tom Keene
Deputy Chairman: Robert Parkes
Deputy Chairman: Geoff Farnsworth
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Member Organisation | Category |
|---|---|---|
| Neil Johns | GrainCorp Operations Limited | Level A |
| Mitchell Morison | Cargill | Level A |
| Robert Parkes | Ridley Agri-Products | Level B |
| Matthew Rutter | Gavilon Australia | Level B |
| Chris Kelly | KM & WM Kelly & Sons | Level C |
| Phillip Holmes | Queensland Agricultural Merchants Inc | Merchant Association |
| John Orr | Premium Grain Handlers | Merchant Association |
| Michael Wood | Rural Logic Australia | Merchant Association |
| Geoff Farnsworth | Macpherson+Kelley Lawyers | Special Qualifications |
| Malcolm Finlayson | Finesse Solutions | Special Qualifications |
| Geoff Nalder | Grain Producer Victoria | Special Qualifications |
| Tom Keene | GTA Chairman | Special Qualifications |
| Helen Harvey | Australian Brokerage International | Special Qualifications |
2010/2011 Board Sub Committees
Audit & Finance Committee – Malcolm Finlayson (Chairman)
| Malcolm Finlayson | Finesse Solutions |
| Chris Kelly | KM & WM Kelly & Sons |
| Tom Keene | GTA Chairman |
Business Development Committee – Neil Johns (Chairman)
| John Orr | Premium Grain Handlers |
| Malcolm Finlayson | Finesse Solutions |
| Neil Johns | GrainCorp Operations Limited |
Membership Committee – Chris Kelly (Chairman)
| Chris Kelly | KM & WM Kelly & Sons |
| Geoff Nalder | Grain Producer Victoria |
| Helen Harvey | Australian Brokerage International |
| John Orr | Premium Grain Handlers |
| Michael Wood | Rural Logic Australia |
Governance Committee – Tom Keene (Chairman)
| Chris Kelly | KM & WM Kelly & Sons |
| Geoff Farnsworth | Macpherson+Kelley Lawyers |
| Tom Keene | GTA Chairman |
Chairman’s Report 2011
The theme of the 2011 Australian Grain Industry Conference was “Weathering Risks: Creating Opportunities” which was apt considering the risks that the Australian grains industry has had to manage during 2010/2011 in particular the rain affected winter harvest. It is pleasing to report that the Australian grain industry has met and dealt with the challenges and that Grain Trade Australia will implement strategies during 2011/2012 that will consolidate industry self governance.
The major rain event during the winter harvest resulted in over half of the 22 million tonne eastern states wheat crop being downgraded to feed or low grade milling wheat, an occurrence that was also carried through to other winter crops. WA was the reverse in regards to weather with a drought stricken crop where quality held but production was cut by about 40% on the previous year.
The downgrading was a challenge for exporters with multigrade contracts ending up as mostly downgraded wheat. This has made it difficult meeting some of the needs of the traditional Australian export markets into SE Asia and the Middle East. Also, logistics were challenged with floods taking out substantial rail infrastructure.
However, export pace for wheat through January to June was very strong despite the downgrading event with monthly wheat exports averaging close to 1.8 MMT which puts Australia in contention for a potential record export marketing year in excess of 18.5 million tonnes.
Grain producers must be congratulated for their grit and perseverance in getting this weather damaged crop in. The post farm gate sector also stepped up and was able to receive, segregate, store and eventually find homes for this massive downgraded crop. A truly great cross industry effort. However, like all challenges, the handling of the harvest did identify opportunities for improvement of processes within the grain industry which will be detailed further in this report.
GTA exists solely to “facilitate trade”. Last harvest certainly demonstrated the worth of an organisation dedicated to the provision of the commercial tools that industry requires to buy and sell grain, irrespective of the sector or the end market.
The last 12 months saw the retirement of Patrick Haire following 6 years on the GTA Board and the appointment of John Orr from Western Australia, Helen Harvey from South Australia and Geoff Nalder a grain producer from Victoria and I thank them and the other Board members for their commitment and contribution.
Financially, GTA remains in a strong position. We operate a policy that requires at least 75% of the expected operating expenses to be held as cash reserves. We are comfortably operating within this policy with reserves as at 30 June 2011 of $831,251.
This policy ensures that the Board has the confidence to commit to expenditures such as the $150,000 expended on the professional development program over the last 12 months. The financial result for the financial year just concluded indicates that GTA has incurred a loss of $36,555. Membership continues to grow with a 10% increase to 245 members.
Continuing market access for Australian grain is critical. GTA in collaboration with the Australian Oilseeds Federation and the Australian Grain Exporters Association are working collectively to develop policy that satisfies EU Sustainability Certification requirements to ensure canola trade continuity with the EU. These policies must be in place for the 2011 harvest.
Now to comment on some of the key industry developments over the last year.
The National Working Party on Grain Protection (NWPGP) is the industry body responsible for providing management and leadership to industry in the areas of post harvest storage, chemical use, market requirements and chemical regulations. The reputation of Australian grain would be substantially diminished without the combined industry efforts of the NWPGP.
It continues to refine and promote the Phosphine Resistance Management Strategy to prolong its life for use in grain storage. The Australian Grains Industry Post Harvest Chemical Usage Recommendations and Outturn Tolerances document details the chemicals that are permitted for use post-harvest and applicable Maximum Residue Limits (MRLs) for grain out turned to Australian domestic or export markets.
The number of chemicals available for use for insect control remains under threat from a continued lowering of international MRLs, a lack of alternative chemicals and alternative control strategies being developed & adopted, insect resistance, and more importantly for all in the supply chain, the continued mis-use of these chemicals and/or supplying product to markets in violation of chemical MRLs. Industry needs to fully understand the implications of the misuse of chemicals such as phosphine and the threat this makes to the long term viability of our industry.
One of the many solutions to be implemented is an agreed best practice management approach to grain storage, chemical use and outturn of product to market – GTA has been asked by the NWPGP to develop a “Code of Practice” relating to these issues that individual companies can sign up to and show they are industry leaders. This Code will be developed during the 2011/2012 year.
Last year, mention was made of the AQIS Grains Ministerial Task Force. This Task Force was a combined industry/AQIS activity which was tasked with improving efficiency in the export certification process following the removal on 30 June 2011 of the government’s 40% rebate on AQIS inspection fees. The Task Force broke new ground for the grains industry and Government being the first time that grain industry organisations have worked with a government agency for the common good of both. This Task Force was Chaired by GTA CEO.
As a result of these efforts, I am pleased to be able to report that substantial changes have and will be implemented. Major changes have been made to the legislative Orders which will be amended to allow timely changes to processes to meet the needs of a rapidly changing export market environment. Also changes to inspection arrangements with the introduction of AQIS Approved Officers will allow added flexibility to an organisations capacity to plan and prepare export consignments. However, I would caution that costs of the new export certification system are still to be fully understood.
A major initiative is the formation of the Grains Industry Market Access Forum which will give a focussed contact point and strategy between AQIS and the grains industry relating to market access. Continuing market access for Australian grain is critical. The Australian Oilseeds Federation along with the AGEA and GTA are working collectively to develop policy that satisfies EU Sustainability Certification requirements to ensure canola trade continuity with the EU. These policies must be in place for the 2011 harvest.
A new fees and charges model is in the process of being developed and will be released to industry early in 2011/2012. This model ensures for the first time that AQIS is able to identify their costs by activity thus enabling an aligned charging regime.
Continuing market access for Australian grain is critical. GTA in collaboration with the Australian Oilseeds Federation and the Australian Grain Exporters Association are working collectively to develop policy that satisfies EU Sustainability Certification requirements to ensure canola trade continuity with the EU. These policies must be in place for the 2011 harvest.
This issue has arisen from the introduction of legislation in the EU that requires all feedstocks for biofuels to meet sustainability criteria. This impacts the Australian canola industry and, while not all canola is used for biofuel, it appears that EU importer requirement is for all canola imports to comply with the legislation and have sustainability certification.
GTA members who supply to this market are encouraged to follow these developments.
The Australian export wheat industry was deregulated in 2008. Under the former regulated arrangements new varieties were assessed and classified under a market driven wheat classification process from that central body.. I am pleased to report that Wheat Quality Australia, a not for profit company limited by guarantee, was established by the Grains Research and Development Corporation (GRDC) and Grain Trade Australia and commenced operations on 1 January 2011 taking responsibility for wheat classification and related activities.
Wheat Quality Australia has established the Wheat Classification Council to provide the link between wheat varieties and market requirements, which involves the annual and longer term review of the Wheat Master List and to provide policy and guidance to the WQA Board in the development of a long term business case on its activities. The Varietal Classification Panel has been convened to undertake the detailed analysis and classify new wheat varieties, with 34 applications reviewed in the first six months of operation.
GRDC and industry have assured funding until 30 June 2012 and in the intervening period,
The Productivity Commission released its report into Wheat Export Marketing Arrangements in October 2010, although the Government is still to respond to the recommendations. In the intervening period, the South Australian Government has convened a Select Committee on the Grain Handling Industry and the Federal Government has tasked the Senate Standing Committees on Rural Affairs and Transport to review Operational issues in export grain networks.
Without wishing to prejudge the final Government outcomes of any or all of these reviews, the industry must work collectively to enshrine self regulatory processes.
GTA has developed standards and reference methods for determination of grade quality but has had a policy not to adopt any form of prescriptive behaviour. Over the next 12 months GTA will investigate the possibility of a change to policy in relation to application of standards. That is, for GTA to become more involved in the development of accreditation programs for:
- Training courses for grain sampling, testing and grade application;
- GTA approved procedures and equipment in relation to the sampling and testing of grain; and
- Grain storage operators.
Aligned to the above processes will be a review of the Australian Grain Industry Code of Conduct (the Code). GTA acts as the industry custodian of the Code and will support adherence to the requirements of the Code by all industry participants. The next step is to now link membership of GTA with adherence to the Code. This is exactly the same as any other organization In association with this, GTA will be looking at the need for a Code ombudsman, independent of GTA.
A further critical strategy for GTA this year is Professional Development. The industry has an obligation to support career development of its professional staff. To that end GTA has invested in the development of another 4 courses over the past 12 months and during 2011/2012 GTA will add the qualification of Diploma in Grain Marketing.
In conclusion, the Australian grain industry is extremely well positioned for continuing growth. Development by the Grains Research and Development Corporation of a National Grains Research Development and Extension Strategy will underpin the continuous productive capabilities of Australia’s grain producers. It is also noted that Grain Producers Australia has been formed and is recognised as the producer body for consultation with GRDC under the legislative requirements of the Primary Industries and Energy Research and Development Act and is also responsible for the Plant Health Deed for the grains industry. This is a welcome development for the post farm gate sector.
The initiatives outlined above when combined with current processes will give added confidence to customers, both domestic and export, that Australia is and always will be a supplier of quality product.
Be assured that GTA will continue to support its membership, ensuring a confident, vibrant industry that is responsive to the challenges of our business.
Thomas (Tom) Keene - Chairman
