Treasurer’s ADM decision well informed

NSW’s leading farm organisation welcomed the Federal Treasurer’s decision today not to approve US giant Archer Daniels Midland’s (ADM) takeover of Australia’s largest agribusiness GrainCorp.

NSW Farmers’ Grains Chair Daniel Cooper praised the Treasurer’s willingness to fully understand the complex state of the east coast grain market and the distorting impacts any sale to ADM would have had.

“This infrastructure is a monopoly handling 75 percent of the grain grown across the east coast,” he said.

“Had the sale to ADM been allowed to proceed, the inability of grain traders to compete would have increased concerns about competition for farmers’ grain.

“While we fully appreciate our agriculture industry needs investment, ADM was not a good match for GrainCorp and growers margins could well have been further eroded,” he said.

NSW Farmers first flagged its concern about the takeover as early as October 2012 and has been working tirelessly to highlight the fears of its grower members for more than 12 months.

President of NSW Farmers Fiona Simson said the association had made submissions to both the current government and the former government outlining farmers concerns about ADM and its financially strong, vertically integrated organisation entrenching the low level of competition which was already inherent in the market place.

She said the association and other industry bodies including the Victorian Farmers Federation, Agforce Queensland the Grain Producers Australia had met with the Foreign Investment Review Board, government and other stakeholders to ensure farmers’ concerns were understood.

“The decision today is not the end of line for all the issues in our grain industry – we still have a lot of work to do,” Ms Simson said.

“But it is great that the government has listened to us because our farmers would be affected the most by entrenching a low level of competition in the grain market,” Ms Simson concluded.

Contact: Veneta Chapple

Phone: 0429 990 218

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