Convincing evidence - Short of a miracle, the Australian wheat industry is terminal.
Roger Cook’s comments
In this issue I republish the simple truth from a leader in Australian grain marketing, Mr Palmquist from GrainCorp. He confronts us with the unpleasant reality that an antiquated infrastructure is being paid for by grain growers and I suppose by definition he is saying the only ones paying, are the growers. An expensive infrastructure, together with the poorest world wheat prices for more than a decade are wrecking the budgets of Australian wheat producers. This grain trader says he has no option but to pass the costs on to the grower — he would say that wouldn’t he? He only has to answer to shareholders — growers only have to answer to the bank. As an example he claims it’s cheaper to move grain from Ukraine to Indonesia than it is to move it 350 kilometers from Swan Hill to Geelong.
Why have we have let this situation develop to the point where we in Australia are so far behind world best practice?…
H/T Bill Crabtree on Twitter
Source: http://gmopundit.blogspot.com/2017/02/convincing-evidence-short-of-miracle.html
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