Wheat

Overview

Wheat is the major winter crop grown in Australia with sowing starting in autumn and harvesting, depending on seasonal conditions, occurring in spring and summer. The main producing states are Western Australia, New South Wales, South Australia, Victoria and Queensland.

The majority of Australian wheat is sold overseas with Western Australia the largest exporting state. The major export markets are in the Asian and Middle East regions and include Indonesia, Japan, South Korea, Malaysia, Vietnam and Sudan.

Wheat grown for domestic consumption and feedstock is predominately produced on the east coast.

Bulk wheat export marketing arrangements

Wheat Exports Australia (WEA) was established on 1 July 2008 to administer the Wheat Export Accreditation Scheme which regulates the export of wheat in bulk from Australia. Under the scheme all companies wanting to export wheat in bulk must be accredited by WEA. The export of wheat in bags and shipping containers is not a part of the scheme.

The Wheat Export Marketing Act 2008 and the Wheat Export Marketing (Repeal and Consequential Amendments) Act 2008 underpin these arrangements.

Wheat Export Marketing Bill 2008 - Explanatory Notes

Wheat Export Marketing (Repeal and Consequential Amendments) Bill 2008 - Explanatory Notes

Productivity Commission review of wheat export marketing arrangements

The Wheat Export Marketing Act 2008, required the Productivity Commission to conduct a review of export wheat marketing arrangements by 1 July 2010. The Productivity Commission released a draft report on 22 March 2010 for public comment with written submissions due by 23 April 2010. Submissions received by the Productivity Commission are available on the Productivity Commission website.

The final report was tabled in Parliament on 28 October 2010.

The Government announced its response to the Productivity Commission recommendations on 23 September 2011.

• Media release: Government reforms to improve wheat export marketing arrangements
• Australian Government response to the Productivity Commission recommendations on wheat export marketing arrangements
• More information about the new wheat marketing arrangements is provided under Frequently Asked Questions.

Wheat Export Technical Market Support

As part of its assistance package of up to $9.37 million to help industry transition to the arrangements introduced in July 2008, the government provided up to $600,000 over three years (commencing in 2008-09) for the Wheat Export Technical Market Support Grants Program. The program gave exporters of wheat, either in both bulk or bags and containers the opportunity to access up to $60,000 across all rounds of the program to establish technical market support arrangement for new customers.

More than $255,000 was awarded to nine exporters from New South Wales, Victoria, Queensland and Western Australia under the first two rounds. A further $171,733 was awarded to six exporters under the third and final round in 2010-11. The program has now closed.

ABARES/ABS Wheat Market Information Project

The government has facilitated the delivery of key market information to industry by providing $3.38 million over three years under the transitional assistance package. Funding finished on 30 June 2011 with the last month of reporting covering September 2011 data to be released in November 2011.

In 2008, the wheat Industry Expert Group (IEG), which was established to advise on the delivery of wheat industry development functions, recommended that monthly data on key market indicators (by state) such as stocks, production, exports and wheat available for purchase be published on a monthly basis. See the IEG report.

The government implemented the Australian Bureau of Statistics (ABS)/Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) wheat market information project to give effect to the IEG recommendation.

The ABS produces two monthly reports, Stocks of Grain Held by Bulk Handling Companies and Grain Traders and Wheat Use and Stocks, Australia.

ABARES uses the results of the ABS surveys and its own data to produce a more comprehensive monthly market report – Australian Wheat Supply and Exports Monthly – which contains estimates of the amount of wheat that is uncommitted and available for sale.

In the report of its inquiry into wheat export marketing arrangements, the Productivity Commission found that the cessation of government funding provided to the ABS and ABARES for additional wheat data collections and publications on 30 June 2011 is appropriate (Finding 7.2). It recommended that if industry wants this information it should pay for it (part of Recommendation 7.1).

Independent Wheat Market Information Project

The Productivity Commission found that wheat data collections and publications should be funded by industry, rather than government, from 30 June 2011. To assist industry transition to the new arrangements, the government provided funding for an independent wheat market information project to determine future long–term arrangements for the provision of wheat market information.

The project was undertaken by independent consulting group GHD, and managed by Grain Growers Limited. The publication was not prepared by the department and may not meet Australian Government accessibility guidelines. If you require an accessible version of the publication, please contact its author.

• Independent Wheat Market Information Study 2011  PDF [1.4 MB]
• Independent Wheat Market Information Study 2011  Word [2.7 MB]