WA grain exports to be deregulated

The state's Grain Licensing Authority is set to be dismantled as the government announces that the export market for barley, lupins and canola will be deregulated before the start of the 2009-10 harvest.

Today's announcement follows a review by the Economic Regulation Authority of the 'Grain Market Act 2002' last year which recommended the deregulation of exports.

Agriculture and Food Minister Terry Redman said the removal of export restrictions on these grains would improve market competition which will reduce costs for traders and provide growers with more selling options and potentially higher prices.

"The deregulation of the national wheat export market last year significantly changed the way the grains supply chain does business in an increasingly sophisticated global market," Mr Redman said.

"The Western Australian grains industry needs to be able to respond to this changing environment to create opportunities for investment and development of the grains industry."

"In the current regulated market barley, lupin and canola traders need to apply for a licence from the GLA to export grain. The new deregulated market will allow traders to deal directly with overseas markets.

"Deregulating these other grains will not result in a significant change to the way WA farmers currently do business and I anticipate there will be a smooth transition to a fully deregulated market.

"There is no indication that regulation achieves a higher price for these grains in export markets or that there is any benefit to retaining the restrictions on export grain marketing.

"Deregulation will reduce costs to industry and provide greater certainty and flexibility to grain traders, who will no longer have to wait to find out whether they have secured an export licence or not."

Growers would continue to be supported by the Department of Agriculture and Food in the deregulated market.

"All grain growers will have access to the 'Understanding Grain Markets' course, developed by the department, Curtin University's Muresk Institute and the National Agricultural Commodity Marketing Association to help them adapt to the new market conditions," Mr Redman said.

The repealing of the Act would involve a Parliamentary process and while the Act is in place, the GLA would continue to operate. However, to ensure market arrangements for the coming harvest are not disrupted by the Parliamentary process, barley, lupins and canola would be de-prescribed under the 'Grain Marketing Regulations 2002' to effect deregulation before the next harvest