Australia: Barley export monopoly faces de-regulation

The barley export monopoly run by ABB Ltd. in South Australia state, the country's biggest producer of the crop, should be deregulated, a state government review group has recommended, Reuters reported December 7.

ABB said in a statement that the South Australian Barley Marketing Working Group had recommended the state's barley marketing arrangements be de-regulated after a three-year transition period.

The recommendation comes just days after the federal government suspended scandal-hit AWB Ltd.'s veto power over national wheat exports after an inquiry found it had misled the UN over kickbacks paid to the Iraqi regime of Saddam Hussein.

"ABB Grain has consistently held the view that the barley single desk (monopoly) offers the best result for growers," ABB said on Thursday.

"However, we recognise the grains industry is currently experiencing significant change, which is impacting on the future of the desk," it said.

South Australia-based ABB is also Australia's largest barley exporter.

The recommended barley de-regulation applies only to South Australia, but exports from other states have either already been de-regulated or are in the process of de-regulation.

During the transition period exporters would be licensed by the state government-appointed body, the Essential Services Commission of South Australia, which would act as regulator during the transition period.

ABB shares fell by around 3 percent on Thursday.

The Australian government temporarily stripped AWB of its export veto powers while it holds consultations over whether wheat exports are to be de-regulated.

08 December, 2006