BHP illustrated graphically only last year the falisy upon which your arguement that somehow by going it alone West Australian wheat farmers should be able to command higher prices due to freight differentials.
BHP also believed this in that their Pilbara Iron ports are half a world closer to china than the major exporters based In South America who have largely set the market.
Who can forget their Mexican standoff with Chinese (and japanese) steel manufacturers collapsing in a heap early last year as they surrendered to the same price (including freight costs) as the South Americans, LOL!!
Of course, CBH would be far more successful in the long term (Yeah, right.)
Fact is, if they ever got the right to try it would be very hard to prove whether it had worked or not.
But the combined tonnage available to be bargained would be split into a hundred little lots and logic dictates that all things being equal which they never are of course) , the lessened negotiating position would eventually translate into lower prices.
Economics 101.
Cheers,
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