GRAIN Producers Australia (GPA) chairman Andrew Weidemann says the current intrigue surrounding grain stocks heading into the second half of the year highlights the need for better stocks reporting.
The industry is currently working through a situation where availability of stocks have tightened dramatically causing a sharp run-up in the old crop price as domestic end-users scramble to get their hands on supplies.
It has raised questions on whether the crop was as large as the official estimates suggested, whether there is a significant amount of unsold grain still remaining on-farm and whether demand has been underestimated.
The confusion will make for a nervy few months for grain users without cover until new crop comes online from November onwards.
Mr Weidemann said better stocks disclosure would be good for all participants in the grains industry.
“As farmers, we would welcome it, there would be a clear signal that there is not a lot of a particular grade around and we could market our supplies accordingly, while it also shows what is out there for the buyers.”
GPA has been lobbying government for several years to compel the industry to release better stocks information.
The major targets are the large bulk handlers who have argued against changes to stocks reporting requirements, claiming they would be forced to hand over commercially sensitive information under proposed changes.
CBH, Viterra and GrainCorp have all argued they already released significant data surrounding stocks and that no further release of information was required.
Further to that, the bulk handlers say the increased prevalence of on-farm storage, particularly on the east coast, means growers would also need to participate in any stocks information release scheme or it would be flawed.
There has been doubts cast on whether farmers would agree to extra paperwork created by stocks information declaration requirements.
Mr Weidemann said he felt the GPA proposal of having disclosure required for growers storing over 5000 tonnes of grain would provide enough detail.
Malcolm Bartholomaeus, Bartholomaeus Consulting, said the stocks information question was marred by a lack of co-operation from within the industry.
He said he felt it would be possible to get farmers to report on what stocks they had.
“In viticulture there are compulsory reporting requirements and growers manage it quite well.”
Mr Weidemann said concerns from both growers and bulk handlers that stocks information would disclose individual positions were ill-founded.
“We don’t want to see stocks down to that level, just at an aggregated level by port zone.
“There is an increasing focus on the domestic market, as we’ve seen this year, and knowing where the grain is and where there are shortages would be good for everyone.”
He said claims the bulk handlers made they could not release details regarding warehoused grain as it was commercially privileged were only an attempt to retain information for their own benefit.
“The information given out would not compromise anybody and would not influence warehousing agreements.”
Opinion is split on whether a stocks reporting scheme would be mandatory or voluntary.
Mr Weidemann said at this stage he felt only a mandated program would work.