Wheat port code: Calls to sunset code

A Victorian grain grower has challenged the ACCC’s recommendation to conclude the bulk wheat port code, saying it hasn’t addressed transparency in the supply chain.

Calls to sunset the wheat port code late next year have been challenged by a Victorian grain grower, who has renewed calls for greater transparency in grains stocks and improvements for market competition.

The federal Department of Agriculture is conducting a second review of the Port Terminal Access code of conduct, with submissions to close in late January. The review will determine the effect the code, operating since 2014, has had on industry and whether it is still necessary.

The Australian Competition and Consumer Commission in its submission to the review has called for the code to sunset in October 2024, arguing a number of factors including limited effectiveness and “a changing industry”.

The submission stated the code’s “significant limitations” had unintended consequences, and that “its regulatory burden may exceed its benefits”.

Rupanyup grain grower and Grain Producers Australia southern region director Andrew Weidemann said there were system issues that still had not been addressed by the code.

Rupanyup grain grower Andrew Weidemann said the code still needed to address issues plaguing the grains industry.

“Frankly, I don’t think a lot has changed. We still support the code process purely because we pay for it as growers as a cost in the supply chain,” Mr Weidemann said.

“Once you take the handbrakes of government away … from things that have an impact downstream, you transpose a lot of power back to singular entities. And that’s why the code was put in place, to try and manage that through a process to ensure competition is real, and actually occurring.”

Mr Weidemann said allowing the code to sunset would not give opportunity to make improvements in areas such as stock transparency and market competition.

The ACCC submission stated three large port terminal service providers remained the major players in the bulk grain export industry, accounting for almost 32 million tonnes of the 40.6 million tonnes of bulk grain exported in 2021-22.

“We’ve been quite lucky in Victoria and in South Australia to some degree with the advent of other players, but in other areas we haven’t,” Mr Weidemann said.

“Clearly there’s issues around transparency in the supply chain, and we’ve not seen the code address that. When it was set up on wheat, it should have been set out on all grains.”