AFTER successfully arguing for the Grain Trade Australia (GTA) Standards Committee to keep the test weight for milling wheat at 74kg per hectolitre less than twelve months ago, the Victorian Farmers Federation’s (VFF) Grains Group was extremely disappointed to hear GTA was once again attempting to increase the test weight to 76 kg/ha.
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VFF Grains Group president Russell Amery said many growers believed GTA was not fulfilling its role in ensuring producers get paid maximum value for their grain and that the organisation was showing signs that it had forgotten its responsibilities to the supply chain.
“GTA has refused industry requests to standardise the assessment method for measuring test weight, yet are proposing to increase the standard. Variations between assessment results cost growers money during the last harvest, increasing the standard will further exacerbate this problem,” said Mr Amery.
“We believe that GTA should first introduce a standard method for measuring the test weight. Having three different methods which can produce different results leaves us with little faith in the system.
“With an increase in test weight, growers will face steep declines in grain prices. They have been given no time to change the varieties they plan to grow this season and will have had only three weeks to comment on the proposal.
“While some of the countries we compete with on the international grain market have higher required milling wheat test weights than Australia, they have far gentler segregation categories, reducing the impact of segregations on pricing.
“In addition, grain standards in countries such as the United States and Canada are set by an independent supply chain focused body with compulsory grain grower participation. Unlike the GTA which is a trader dominated industry body.
“The simple fact is increasing the test weights simply improves grain traders’ ability to make money out of blending and tighter segregations, whilst growers once again pay the price. The trade would be better off paying premiums for higher test weight grain and leaving the standards alone.
“This is an issue the VFF Grains Group will be discussing during its Annual Conference in Horsham this month. Growers need to send a clear message to GTA that these sort of changes need to be made in a more consultative and open fashion.
“Maybe GTA is no longer the right body to be given the significant responsibility of setting the standards for Australian grain as it appears they have certainly forgotten the role grain growers play in the industry,” concluded Mr Amery.
