Australia: Grain companies urged to help farmers with prices

Grain companies say international and domestic markets are keeping the price of wheat and barley down this harvest, Australian sources commented on December 16. A farmer from Victoria's south-west, and Hindmarsh Shire Mayor Darryl Argall, has called on grain companies to improve their prices to help farmers recover from the drought. But wheat exporter AWB says international and domestic demand and currency rates determine the grain price.

Peter Jones from the Australian Barley Board agrees. "We have had a bigger crop in Australia than we've had for the last year or so and that needs to be factored in to the international supply and demand," Mr Jones said.

Mr Jones says price differences of up to $60 per tonne for malt barley in Western Australia and Victoria can be attributed to the ways different companies operate.

He also says the barley price differences between the two states are due to the need to supply the company's malthouse in the west.

"What we're finding is that the prices offered over there by the grain pool have been extremely high and for us to get some grain for our facility we have to match those prices."

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