Could WA be the home of the new Grains Australia?

WA is in pole position to become the base of the new Grains Australia group, with farmers and the State Government arguing it is in the nation’s interests for at least part of the work to be done here in the west. With directors’ positions being advertised for Grains Australia, a question mark hangs over whether the new group could be based in WA — the nation’s largest grain producing State. Grains Australia is hoped to consolidate “fragmented” sections of Australia’s grains industry functions by amalgamating smaller groups responsible for trade reform, market access negotiations, receival standards, variety classification, biosecurity, and policy, among other issues. Industry good functions have been spread across a number of platforms since deregulation in 2008, with trading standards handed to Grain Trade Australia, malt accreditation to Barley Australia, and wheat classification to Wheat Quality Australia. GRDC is spending $2-3 million creating Grains Australia and is currently the sole shareholder of the group, which is expected to be formed by the end of June. While it wouldn’t sell grain, Grains Australia would be responsible for “industry good functions” with its own staff and commodity councils. WA Agriculture Minister Alannah MacTiernan said while it was important Grains Australia was focused on all of Australia, it was more important the group did not take any capacity away from the WA-based Australian Export Grains Innovation Centre. “We have not been able to get any clarity as to where Grains Australia would be located, which is of concern to us,” she said. “We have got no commitment that Grains Australia would be located here. “To me, that is important, but more important is that we keep AEGIC as a suite of skills.” Ms MacTiernan’s argument is in sync with WAFarmers’, which supports the concept of Grains Australia “as long as there is a strong element of it in WA”. “The big thing for us is Grains Australia needs an element of their presence here because we get forgotten, and we are seeing far too many decisions being made in the east, which affect the west,” WAFarmers grains section president Mic Fels said. “Retaining an arm of the (Grains Australia) body in WA is important. As the one State that is export-orientated, things that are export-orientated should be based in WA.” Grains Australia this month started to roll out advertising for directors to chair its first independent, skills-based board and later appoint its first chief executive. GRDC chief executive Steve Jefferies said the Grains Australia constitution was “deliberately silent on the location of the head office”. He said the board would be wholly responsible for choosing where the organisation was located. “The steering committee is of the view that the best place would be wherever the best people could be found,” Dr Jefferies said. “There is not a set, agreed location for the head office and the chief executive, but it will be where the best chief executive is found and where the board wants it to be based ... it could be anywhere. “Our view is that the business could be a virtual business not requiring all staff to be located in one place. “There is a flexible, agile approach, but those decisions are in the domain of the board.” WA Grains Group chairman Doug Smith said he was concerned Grains Australia would “become an east coast-centric organisation”. “I would like to see some more information as to how the benefits are going to flow to WA,” he said. “We don’t want another organisation that chews up growers’ funds and doesn’t deliver any-thing. “I certainly have concerns about taking any capabilities from AEGIC given WA is an export-orientated State, and AEGIC is a very important organisation for WA.” When asked whether Grains Australia could be based in WA, Dr Jefferies said “absolutely”, and flagged working with the WA-based AEGIC as one of the potential perks. “That would depend on if the chief executive is in the best place to be in WA,” he said. “One of the potential benefits are the savings and synergies for aligning functions ... sharing some of the administrative load with AEGIC. “Even so, that doesn’t mean it needs to be in WA to share resources with AEGIC. “In the leading grain-producing State would be a good place to be. “If the right people need or want to be based in WA, then I assume that is what the board will do.”