123 Queen Street Melbourne VIC 3000

GENERAL MEETING

11 October 2013

Karstens Conference Rooms

123 Queen Street Melbourne VIC 3000.

PRESENT: Listed below

APOLOGIES: Listedbelow

MINUTES: Terry Roche, Secretary

The meeting commenced at 1:30PM

Introduction. President Michael Wood welcomed members, and visitorsPeter Mc Meekin and Gary Booth.

Michael also acknowledged with sadness the recent passing of Phil Poulton, a Past President and Treasurer of the GIAV. Phil’s substantial contribution to the GIAV and the issues of the day was noted, and his passing at the relative young age of 58 was a shock. Bill Baxter from Rural Logic attended the funeral on behalf of the GIAV.

Minutes of the previous meeting

The Minutes of the meeting held on 16 August 2013 were accepted as an accurate record of the meeting.

(Wood Riordan) Carried

Business arising from the previous meeting

None

Correspondence

Secretary Terry Roche advised that correspondence since last meeting comprises approximately 350 emails, excluding advertising material. Terry advised members that he sends approximately 6 emails a week, although this will slow over the Christmas New Year break. Therefore if members are not receiving regular emails they should contact Terry for a suggested fix. Terry keeps copies of correspondence for 12 months, except where statuary requirements require that records be kept longer.

Treasurers Report

Treasurer Bill May presented the following report

“My lasttreasurer’s report included the presentation of the annual accounts. At that time cash in bank accounts totalled $45,449. As at the end of September the total was $55862.30. The main items of income have been membership fees, and AGM lunch receipts, and the outlays have been on the AGM Lunch, Secretarial expenses, a tax instalment and bank fees.

As reported at the AGM, we have been losing too much money on our past AGM Lunches, and this year as promised we changed the format to reduce costs, and we secured some sponsorship from Rabobank.

As a result, we will record a deficit of only $410 when all payments are received. This is better than last year’s deficit of nearly $6000.

However our outstanding accounts are higher than they should be, despite follow up, at over $8000. This is mainly membership subscriptions, so I ask that if your renewal invoice is still outstanding can you please pay it next week or this afternoon if you have cheque or card!

Assuming that these outstandings are cleaned up quickly, our overall financial position is quite sound.

I move that this report be accepted, and invite any questions.”

The Report was accepted (May/Riordan) Carried. There were no questions.

Grain Trade Australia (GTA)

In the absence of Geoff Honey, who was an apology, board member Michael Wood presented the following summary.

The GTA Annual general meeting will be held on 29 October 2013, at the Mercure Hotel Melbourne. Members are encouraged to attend. Details are available from GTA or Michael Wood. Elections will be held for board positions, and candidates include Robert Parkes, Robert Imray and Guy Allen.

GTA is currently running an ExportsContracts and Documentation Course and registrations suggest a strong support for further similar courses.

GTA wishes to publicise the “Food Bank” initiative, where industry is encouraged to donate small parcels of grain, which will be processed by volunteer companies and the end product donated to the underprivileged. Small parcels, such as stock residuals, shrink parcels could be used for this purpose.GTA is aiming for 3000 tonnes in the first year.

The Minimum test weight for milling wheat has been increased to 76 kg/hl. This standard, which is a GTA standard derived from amarket trading standard has been adopted by the Bulk Handling companies, but the method of managing this during the harvest differs somewhat between companies. Bulk Handlers will receive at 74 or 75 kg/hl, while still guaranteeing trading out-turn at 76kg/hl. The meeting agreed that the management process needs to be clearly communicated to growers by each company. Loreto Carrasco representing GrainFlow said that communication with growers is already underway, and feedback has generally been quite good.

Grain Transport

Simon McNair has been chairing the State Government and Industry Grain Logistics Task Force, and provided the following information. Generally there have been no major issues this year getting grain to port. There have been more trains, and time slotting arrangements at port for road transport have worked well and improved accumulation and reduced port congestion.

The 2013-14, there is likely to be 9 or 10 trains, operated under a range of contract arrangements. Crop forecasts and shipping intentions suggest that demand will exceed rail capacity and road transport will be busy. At present rail share into Portland is about 35%, with an even rail/road split into the other Victorian ports. The Toolamba to Echuca line has been re-opened again, and there is still talk of standardising the total grain network. This will, if it occurs, require the use of bogie exchange facilities during the construction stage.

The Maroona to Portland line has also had a minor upgrade.

At present there is still no harvest mass management scheme for far to silo deliveries, and there is a need to have consistency of approach between states. Discussions with Vic Roads have not resulted in any breakthrough on the issue. Dealing with overloaded trucks at silos remains a problem. GrainCorp is very mindful of Chain of Responsibility implications, and overloaded trucks are not sent out on the road. Any tolerances granted to ex farm trucks will also have the potential for conflict with local councils.

Most Commercial carriers and many farmer trucks have mass management accreditation, but unique plate identifiers for non commercial trucks are an option. VFF is pushing for more talks with VicRoads and councils to resolve the issue.

Bulk Handling and Shipping

Shaun Williams (GrainCorp) advised that there are presently 2 million tonnes on the shipping stem for Geelong and 700,000 tonnes for Portland. It will be a December to July Programme at Geelong, stretching to August at Portland. Slower shipping demand in Newcastle will likely free up an additional train next year post February for use in Victoria.

Domestic demand is increasing and stocks are getting very tight, but will be sufficient. Receival issues are not expected, and the process will be helped by a number of installed drive over hoppers.

Members were pleased to hear that GrainCorp’s Graham Mathason is on the mend after a long illness.Graham has played an important part in developing new pricing structures for 2013-14

GrainCorp has announced an increase in the shrink allowance to 0.7%, and representatives from other BHC’s indicated that their organisations were following suit.

Loreto Carrasco provided a report on behalf of GrainFlow.

Queensland wheat is high protein, much is APH2. South Australia is starting next week and crops are looking good. Northern NSW is well below average in yield. Further South, the Oaklands area is now suffering stress, with rain needed.

Conditions in Victoria around Grain Flow sites are looking very positive. Barley deliveries are likely to start at Sea Lake in three weeks. Carryover tonnages in their system will be very low, perhaps less than 5000 tonnes.

Charlton Grain Flow will take barley. Scope variety is now a designated Malting variety.

Gerard McMullen advised that the incidence of weed seeds in all varieties is being reviewed. Segregating wheat deliveries with a high barley count in some areas might have to be considered.

Matt Kelly advised that their Tocumwal site will be operating under the Emerald banner this year.

Riverland Oilseeds will have an additional 40,000 tonnes of storage this year.

Brad Knight from GEO Commodities believes that there is very little left on farm.

Presentation

Stephen Sheridan from VFF Grains Group provided an overview of major issues raised by farmers in recent Grower/Industry meetings.

Stephen’s presentation is attached.

In summary feedback from growers has been

1. Growers are still coming to grips with major structural changes in the Industry.
2. Performances of pools have been generally poor.
3. They have had concerns about Mid West, One World, and Convector.
4. They are being forced to deal with the “big end of town”
5. Confidence is low, linked to some business failures
6. There are legal ramifications flowing from such failures linked when the title of the grain passes under some contracts
7. Should there be a compulsory Grain Insurance Levy?
8. Should interest on overdue accounts be enforceable
9. Should buyers pass an assets test?

Stephen noted that many of the above points if implemented come at a cost, and introduce Government regulation into an industry that has been largely self regulating for many years. Sufficient powers exist with ACCC and ASIC already.

Jim Riordan offered a trade response and supported Michael Wood’s view that many traders have been similarly affected by company collapses.

• An Industry Code of Conduct developed by GTA is in place but is not binding.
• There is a need to review the operation of the Personal Property Services Act as it relates to grain contracts, so that the point of retention and passing of title is clear in all circumstances.
• There might be a need for the Code of Conduct to be made mandatory. This Code should also include stock “transparency” but this is unlikely to happen.

Michael Wood emphasised that growers and the trade should be working more closely on some of this issues rather than taking an “Us vs. them“approach.

Simon McNair and Jim Riordan noted that GIAV is in the best position to work with VFF to jointly tackle some of these issues, and made that offer to Stephen Sheridan. Bill May suggested that there should be more education in counterparty risk.

While agreeing with this, Craig Perkins did place recent losses in perspective as a very small percentage of industry turnover and added value.

Brad Knight commented that growers are likely to ask future traders very searching questions about the substance of their organisation, and traders should not be surprised or offended. Darren Pearson agreed and noted that the affected growers are the most likely to be very vocal.

Stockfeed

Ian Reid. Volumes remain good, a dairy recovery is underway, but is likely to be a two to three process. Volumes in Gippsland are down on last year, pigs and poultry is steady.

There is a swing to barley from wheat at current prices.

Malting Industry

A recent barley symposium was well attended. Gerard Mc Mullen commented that exports were happy, and more varieties are coming through.

Export marketing

Pat O’Shannassy commented that the FOB allocation process is not without problems as some are buying more space than they need, albeit at cost. To date there are very few bookings in NSW, and two thirds of the bookings are by the trading arms of the Bulk Handling Companies. Trade liquidity in allocations is poor. Also Total Stock Transparency is unlikely to be able to be successfully regulated.

Harvest Roundup

Jerilderie. Barley is very good. Wheat is suffering in Lockhart through to Urana, and across the Northern Riverina.

Matt Kelly commented that Canola yields will be up 20% +. Barley plantings are also up on last year. Barley is mainly feed variety Hindmarsh. Heat will lead to more grades to be segregated.

Swan Hill barley is about 3 to 4 weeks away, wheat 4 to 5 weeks away. Canola sowings are way down on last year and there will not be canola segregation at Woorinen.

There is more wheat and Barley, 7 – 10 bags of wheat and 8 – 12 bags of barley is likely maybe even more further south. NSW toward Balranald is average.

Horsham

Beans are “fence high” all crops look good. Rainbow to Beulah could be “best ever”

Western District

Hamilton to Geelong crops are good

Top Corner

Yelta to Meringur crops are poor, west of Meringur is much better

St Arnaud cropslook “best for years”

David Brook has an interesting report from SFMAV suggesting that Roundup herbicide is not registered for barley use. The article is an interesting read, and will be circulated by Terry Roche to all members.

Sean Blair mentioned incidences of fungicide contamination in fertiliser. Potential sources are contamination from augers and from trucks that are swept but not washed.

Gerard McMullen suggested that the National Residue survey suggested that most contamination comes from trucks, and trucks need to be washed.

Michael Wood thanked all for attending and closed the meeting at 4:15PM

Next meeting: Friday 14 February 2014. Same venue - Karstens Conference rooms 123 Queen Street Melbourne.

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Attendees / Apologies
Michael Wood
Simon McNair
Gerard McMullen
Adrian Murphy
Darren Pearson
David Brook
Andrew Kelso
Katrina Liston
Brad Knight
Bill May
Chris Kelly
Craig Perkins
Ian Reid
Chris Coore
Pat O’Shannassy
Stephen Sheridan
Brendan Farrer
Brad Waterfield
Shaun Williams
Loreto Carrasco
Matthew Kelly
Michael Cole-Sinclair
Rob Nelson
Marcus Dingle
Jim Riordan
Peter Mc Meekin
Gary Booth
Sean Blair
Nick Crundall
Terry Roche / Norm Lee
Chris Spano
Richard Wilken
Peter Allen
Dominic Hogan
Bill Donnellon
Fiona Sayle
Andrew Gregor
Tony Mellington
Craig Cochrane
Chris Liston
Andrew Whitney
Chris Ayers
David Jemmett
Geoff Honey
Dianne Burns
Andrew Saunders
Brian Wickenton
David Barlow
Jeremy Barlow
Rex James
Peter Wardell

Grain Industry Association of Victoria Inc. ABN 56 556 354 727

Secretariat: PO Box 2317 Blackburn South Victoria 3130 Tel/fax 03 9894 1210 Email Website