Grain Marketing in Australia 2013

Australia is one of the world’s largest producers and exporters of wheat. In 2012-13 wheat exports from Australia are forecast to be slightly less than 20 million tons, second only to the United States. The majority of wheat exported from Australia is in bulk form, with only a small percentage exported in bags or containers. Unlike other coarse grains, bulk wheat exports from Australia have been highly regulated under several forms of government control. For many years the wheat export market in Australia was dominated by the Australian Wheat Board (AWB). By virtue of its monopoly control, AWB was in a position to influence pricing and control export quantities and destinations in order to maximize returns to the Australian wheat farmer. At the same time the AWB was criticized by its competitors as a form of State Trading. That all ended in 2008 when major reforms were enacted that effectively abolished the AWB’s monopoly of grain export markets. This report attempts to summarize the nature of those reforms and how the Australian grain marketing and handling system operates today as a result.