Australia: Farmers urged to keep barley shares

The South Australian Farmers Federation (SAFF) will recommend that farmers reject a proposal from the barley marketer to hand over their shares, according to ABC News, July 6.

ABB Grain wants to remove its dual class share structure now that the barley market is being deregulated. The company is asking growers to hand over their A-class shares.

Company chairman Perry Gunner argues they have no intrinsic value. But SAFF grains council deputy chairman James Rackham says the shares do have value.

"Control value, I mean you can't always measure value in terms of money," he said.

"There's great control value there because if growers don't like the majority of directors they can fire them.

"So anybody who says they have no value is dreaming. In a $1 billion company to control over half the board is a form of great power."

ABB Grain has silos throughout SA and some in Victoria.

06 July, 2007