VFF claims win on insolvencies

Brett Hosking said the VFF had been lobbying hard on insolvencies, which have cost Victorian growers over $50 million over the past two years, and won the Coalition promise in the lead up to this weekend’s Victorian state election.

Although the Inquiry does not create change in itself, Mr Hosking said he believed it would lead to a shake-up of the sector, which has seen a spate of small to medium sized grain traders going under.

“They have promised real action in terms of whatever findings come out of the Inquiry will be acted upon.”

“The other thing regarding a Parliamentary Inquiry is that those people who choose to give evidence can be more open with what they say.”

Shadow agriculture minister Jacinta Allan could not confirm prior to deadline whether the ALP would provide bilateral support to the Inquiry, but Mr Hosking said he was hopeful the Opposition would be on the same page.

“We see this as very important, particularly in a year when for many growers every last tonne and dollar will be critical given the poor finish to the season."

Mr Hosking acknowledged the difficulties of taking up what is essentially a national issue through the State Government, but said the VFF’s advice was that the State Government was the appropriate channel to take the matter up.

“There could be a significant role for the federal government there too, but at this stage we are pursuing the matter with the State government.”

“We’ve been in discussions with industry and government about how we could work together to improve payment security for growers.”

One of the VFF’s more controversial policies on the issue was to push for a licensing or accreditation scheme for the trade. There was some support from growers, but the trade overwhelming dismissed the idea.

Mr Hosking, however, said something had to be done.

“Like any business, farmers have to bear their own finance and capital risks, but growers should not have to carry traders’ capital risks as well.

“Some in the trade currently seem to believe it is solely the grower’s responsibility to bear the burden of vetting a grain buyer’s financial position and compliance with professional standards.

"We consider it’s the buyer’s obligation to perform on contracts and their responsibility to manage their own businesses,” Mr Hosking said.

“It is an unrealistic and impractical expectation of growers to assess the financial capacity of all buyers, especially when the major banks and other grain traders are also getting caught by these insolvencies.”