Agricultural News
US Wheat President Alan Tracy to Aussie Wheat Growers- US Wheat Farmers Want You to Do Well.
Sun, 28 Feb 2010 17:56:34 CST
U.S. Wheat Associates (USW) President Alan Tracy was a guest speaker at the Grain Industry Association "Crop Updates 2010" meeting and a meeting of the Pastoralists and Graziers Association in Perth, Western Australia, Feb. 26, 2010. Tracy's remarks at both meetings centered on what he called "the important story" that wheat producers in the U.S., Australia, and elsewhere get more return for their crop when the basis of competition is specific value for specific uses rather than simply on price.
"There are sound business reasons for American wheat producers to want to see Australian wheat producers do well," Tracy said. "If the market isn't working to bring you the full value of your wheat, it gets sold too cheaply and serves to bring our prices down as well. When the market works effectively to get our products to their best possible uses, both our countries' producers will see better returns."
The Australian wheat industry is in transition to an open wheat marketing system after its government supported wheat export monopoly ended in 2008. Western Australian grain industry leaders invited Tracy to speak about the U.S. wheat industry in the context of that transition.
"Now that you are developing a competitive market system," Tracy told the Western Australian growers, "those things that unite us are far greater than those things that divide us. Let us compete in an open and transparent marketplace, on the basis of competitively determined prices and the intrinsic value of our crops, and let us cooperate in those ways that make sense to us both."
Two areas of common interest Tracy focused on were wheat research and the trade-distorting tactics of export state trading enterprises. In his discussion about wheat research, Tracy noted that the USW producer board had directed him to collaborate with Australian and Canadian producers to help minimize possible trade disruptions from the eventual development of biotechnology traits in wheat. Tracy also urged Australian producers to work with USW to ensure that the next World Trade Organization agreement eliminates export monopoly powers represented by the Canadian Wheat Board and the Russian Federation's plan to subsidize grain exports.
While sharing publicly available information about the U.S. wheat marketing system, Tracy said U.S. wheat producers earn more for their crop by taking advantage of market information, retained grain ownership, and risk management tools. Wheat value and producer income would grow if Australian producers had the same advantages, he said. Tracy ended his speeches with an open invitation to Australian growers and wheat industry representatives to visit the United States to continue the dialogue.
Tracy is taking the opportunity to meet with other grain industry organizations in Australia before returning to the United States to participate in the Commodity Classic conference and trade show in Anaheim, CA, the week of March 1.
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