Inquiry into the South Australian bulk grain export supply chain costs - draft report - Archived

07 Aug 2018

The purpose of the Draft Inquiry Report is to elicit further information on matters relevant to the Terms of Reference for the Inquiry, particularly from industry participants, and to provide the opportunity for consideration and testing of the report’s draft findings.

Draft findings include:

• The Inquiry has focussed largely on the performance and behaviour of Viterra, given its position of strength within the grain export supply chain.
• Based on available facts and evidence, at this time the grain export supply chain is not demonstrably inefficient, in terms of its costs, from both an overall and individual supply chain segment perspective. Further, at this time, Viterra’s returns are not demonstrably unreasonable and strongly dependent on yearly harvest yields. The extent to which this continues over time will be dependent on Viterra’s future actions as a provider of grain export supply chain services, given its position of strength within that supply chain.
• There are potential changes to aspects of the grain export supply chain’s functioning which, at the margin, are likely to improve efficiency and enhance the prospect of users obtaining a greater share of any gains made. Examples include providing greater transparency regarding fee levels and Viterra’s financial performance, and removing fees that may inhibit the development of third-party competition.

The Commission is now consulting on its draft report, with the closing date for submissions being Monday, 17 September 2018. The Commission, having regard to submissions, will provide a final report to the Treasurer by 31 October 2018.

The Commission would be pleased to meet with stakeholders, either individually or with representative organisations, to discuss the findings presented in this Draft Report.

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Inquiry into the South Australian bulk grain export supply chain costs