Yanks hate the Single Desk because as was just illustrated in the latest tender for Egyptian business, the AWB undercuts the market to move grain. Its why I hate it too. $4/tonne cheaper than French wheat and I don't know if you have ever seen the quality of French wheat but let me assure you it ain't a scratch on Aussie wheat. French wheat is crap.
And when I refer to New Zealand I am talking about their agricultural sector. Switched on cookies. Fonterra is a great example of what is possible in a deregulated agricultural environment. You know it is actually possible for entrants into the system that were not born of farming blood. Many dairying operations are headed by professionals who in previous roles were blue collar workers. Why? Because the opportunities and returns are there to be gained through sound business discipline on some very simple business models. Where were these multinationals you fear so much when the dairy industry was deregulated there? Instead a sweep out of all the innefficient operators occurred and in their midst stood those with good business brains both from within and also outside of the agricultural sector. Now Fonterra itself acts as a multinational outfit but it is the farmer members who reap the benefits.
Unlike many farmers who are passionately FOR the status quo I have gotten off my butt, travelled and had a look at agriculture in other countries at an agro-political and economic perspective. You'd be amazed at how well you can do when you haven't got the shackles of over-regulation lumbering you down. Why should the Wheat Industry be the only regulated one in Australia?
AWB Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
