1. 1 EXPORTING WHEAT FROM AUSTRALIA ASOCIACIÓN DE COOPERATIVAS ARGENTINAS ______________________________ 14 NOVEMBER 2008

2. 2 WHEAT EXPORTS AUSTRALIA Wheat Export Marketing Act 2008 commenced on 1July 2008 The ‘single desk’ export monopoly on bulk wheat has ceased Wheat Exports Australia (WEA) established as the export regulator to operate the wheat export accreditation scheme Legislative objectives: To promote the development of a bulk wheat export marketing industry that is efficient, competitive and advances the needs of wheat growers To provide a regulatory framework in relation to participants in the bulk wheat export marketing industry. Developed to introduce competition into the wheat industry

3. 3 BULK SCHEME OVERVIEW Purpose: To attest that an exporter is a fit and proper company to export bulk wheat from Australia The Bulk Scheme does not in anyway: –Regulate shipments of wheat in bags or containers (<50 tonnes) –Indemnify exporters –Provide any guarantee the exporter will remain financially viable WEA does not in anyway regulate the quality, variety or grade specifications of wheat exported from Australia

4. 4 NEW EXPORT ARRANGEMENTS AWB International no longer holds any special status Australian wheat quality will be managed by the industry and not government WEA does not indemnify accredited exporters or provide any guarantee they will remain financially viable Nineteen exporters have now been accredited by WEA Exporter names and conditions of accreditation are published online www.wea.gov.auwww.wea.gov.au Multiple exporters of Australian wheat means greater choice for international customers

5. 5 AUSTRALIAN WHEAT INDUSTRY OVERVIEW 44% 5% 19% 13% Map Source: ABARE

6. 6 AUSTRALIA and ARGENTINA – 2007/08 AustraliaArgentina Wheat produced: Wheat exported: Domestic use: Area planted: Average yield: Regulation: Export charges: Total ag sector: 13 million tonnes 7.5 million tonnes 6.4 million tonnes 12.4 million hectares 1 tonne / hectare Deregulated except bulk wheat accreditation No taxes (Wheat Export Charge – $0.22/tonne) 2.8% GDP 16.3 million tonnes 10.2 million tonnes 5.3 million tonnes 5.7 million hectares 2.8 tonnes / hectare Deregulated 28% export tax 9.4% GDP

7. 7 CASE STUDY - CBH Co-operative Bulk Handling in Western Australia controlled by over 5,500 grower-shareholders net assets of more than AUD1 billion Annual turnover of more than AUD900 million Storage and handling: 200 receival sites across the State Total capacity over 19 million tonnes 11 million tonnes received from harvest Grain transported to 4 port terminals to meet volume and quality requirements Investment: 5 Indonesian and Malaysian flour mills Vietnamese grain terminal and flour mill Profits are re-invested in facilities and infrastructure

8. 8 CASE STUDY - CBH Marketing: Operates various marketing pools on behalf of growers Main license to export barley, lupins and canola from WA Large exporter of wheat accredited by WEA Shipping: Joint venture with shipping company Other activities: Quality assured grain Research and Development Diversification

9. 9 FUTURE FOR AUSTRALIAN WHEAT EXPORTS Multiple accredited exporters competing to buy wheat from Australian growers Greater innovation and choice for buyers and sellers Industry self- regulation Greater on-farm storage Ongoing investment in grain research New wheat varieties Improved water use efficiency and farming methods Better milling quality of Australian wheat

10. 10 Further information Contact details: Caroline Rhodes Senior Manager - Operations Wheat Exports Australia Email caroline.rhodes@wea.gov.aucaroline.rhodes@wea.gov.au Phone +61 2 6202 3400 Websitewww.wea.gov.auwww.wea.gov.au