GENERAL MEETING
12 October 2012
Karstens Conference Rooms
123 Queen Street Melbourne VIC 3000.
PRESENT: Listed below
APOLOGIES: Listed below
MINUTES: Terry Roche, Secretary
The meeting commenced at 1:30PM
Introduction. President Michael Wood welcomed members, and visitors Cindy Mills (Wheat Quality Australia) and Mr. Ajay Argawal.
Michael also welcomed new member Grain Link NSW Pty Ltd, represented at the meeting by Richard Gale.
Michael advised of the passing of Dennis Cameron, father of members Scott and Dallas Cameron. He added that he attended the funeral of Ray Brooks on behalf of the GIAV.
Minutes of the previous meeting
The Minutes of the meeting held on 15 August 2012 were accepted as an accurate record of the meeting.
(McNair/Reid) Carried)
Business arising from the previous meeting
Simon McNair asked for a status on the Port Access Code. As there was no AGEA member present and in a position to comment, this item was deferred pending further enquiries, via AGEA member Chris Aucote.
Secretary Terry Roche advised that written advice has been received from the Department of Justice confirming that the GIAV amended Rules have been accepted and registered.
Correspondence
Secretary Terry Roche advised that correspondence since last meeting comprises approximately 600 emails, excluding advertising material. The GTA Annual Report for 2012/12 has been received, and a copy is available for members if required. Some copies were distributed at the meeting.
The GTA Annual general Meeting is scheduled for 23 October at the Menzies Hotel, Sydney.
Particular correspondence items of note include
¨ A new member application from Grain Link NSW, which has been approved by the Committee
¨ A quotation of $297 to upgrade the website. This was approved by the Committee and the work has been completed
¨ GTA Code of Practice
¨ Advice that Ray Brooks has passed away.
¨ Advice that Dennis Cameron has passed away
Treasurers Report
Treasurer Bill May presented the following report
“The last Treasurers Report was based on the Audited accounts for the year ending June 2012 presented at the AGM, and if any member did not receive a copy of those accounts and would like a copy, please contact Terry.
Since that meeting, most transactions on the accounts have involved the collection of monies for the AGM luncheon, and outstanding memberships subscriptions, which were payable by 31 July.
On the matter of subscriptions, despite follow ups, we still have quite a number outstanding, and we would ask that these be attended to without further delay. Please see Terry if you are not sure if you are paid up. Our outstanding accounts stand at about $7000.
Significant outgoings include taxes of $1637, which were within expectations, the settlement of the AGM Lunch catering, and a deposit on next February’s GIAV Golf day, which Adrian Murphy will talk about later.
Our balance at the end of September 2012 in the trading account is $8492, but with term and on call deposits, our cash position totals $50, 241. Our members’ funds are approximately $4000 below the same time last year half of which is due to a higher deficit on our AGM Lunch.
In summary our finances remain strong, but our outstandings are higher than we would like despite efforts to collect them.
Terry is happy to send a copy of the accounts to any member who would like them. I move that this report be accepted.” The Report was accepted (May/Murphy) Carried. There were no questions.
Presentation
Cindy Mills, General Manager, Technical, Wheat Quality Australia. (WQA)
A copy of the presentation is available attached to these Minutes.
Highlights of the presentation included:
The major role of Wheat Quality Australia is to ensure that the quality of classes of wheat meet the market expectations.
At present, WQA is funded 50% by GRDC and 50% by industry. The make-up of the industry component is set out in the attached presentation. The classification system was inherited from AWB Ltd., which controlled classifications and related issues via contracts, site selection and the AWB network. Now that there are many more parties in a largely deregulated environment, the requirements for a wheat classification have changed.
Classifications are not “owned” but regarded as being in common use.
Gerard Mc Mullen commented that the classification system must take regular account of how classifications are checked.
Craig Perkins asked about the level of non compliance being experienced. The level is low – the objective is to ensure the integrity of the system for the future.
GTA Report
President Michael Wood is also a Board member of GTA and provided the following report on GTA activities:
1. “The GTA operational plan better known as GTA Strategic Direction 2012 is on the website and details GTA's short to medium term strategies and long term vision for the Australian grain supply chain. Members are encouraged to read it!
2. New Trade Rules became effective on 1 October 2012. No substantial material changes but members are encouraged to review the Rules – Member Update 18 of 12 details the major changes.
3. The Chemical Usage Recommendations and Out Turn document was released on 26 September 2012No. 24 of 12 Chemical Usage Recommendations and Outturn Tolerances.pdf.
4. LDs for eastern states released and become effective on 1 October 2012. No. 22 of 12 GTA Location Differentials 2012 2013.pdf.
5. GTA is seeking comment on the draft of the Australian Grains Industry Code of Practice - No. 20 of 12 Australian Grain Industry Code of Practice.pdf. Submissions close on 31 October 2012
6. GTA is seeking comment on the draft of the Australian Voyage Charter Party. Submissions also close on 31 October 2012.
7. GTA Standards released on 20 August 2012. As a reminder it is GTA policy that test weight for milling grades of wheat will increase from 74to 76 kg/hl next season.
8. GTA finances – audited profit of $41,038 and cash reserves of $779,826 – financially sound.
9. Annual Report and full Financial Statements are on the website.
10. AGM – Sydney 23 October 2012. Tom retires after 4 years but significantly Chris Kelly will retire after 12 years of service to the Board of the National Agricultural Commodities Marketing Association better known as NACMA which then changed its name to Grain Trade Australia.
Chris was the driving force behind the substantial structural changes to NACMA that resulted in a new Constitution allowing organisations to become individual members and importantly ensuring it was conducted in a commercial and professional manner. These changes laid the foundation for the strong financial base of GTA and importantly its recognition within the Australian and now global grain industry. On behalf of GIAV, I would formally like to acknowledge Chris’s contribution to the development of GTA.”
Presentation: Grain Industry Code of Practice - Gerard McMullen
Gerard presented a comprehensive overview of the work conducted by GTA on the development of the proposed Grain Industry Code of Practice.
The presentation is attached to these Minutes.
Gerard is encouraging all members of GIAV to read the proposal carefully as it will likely have an impact on their business in the future. Gerard emphasised that this is an opportunity for all industry participants to have input to the proposed Code. The Code will be mandatory for all GTA members from 2013.
Input is sought by 31 October 2012.
It is intended that the Code be reviewed annually.
Industry Sector Reports
Road and rail and bulk handling
Rail receivals into Geelong this year have totalled 1.2 million tonnes, road receivals 1.7 million tonnes. Portland receivals 1.0 million tonnes.
On line time slotting for road receivals is running at 85% at Port, 95% + at up country sites. Members commented that the country system is working particularly well. There was a suggestion that a certain type of tipping vehicles, tip over axle types, might be banned. Also tipping licences, which are being ticketed locally, might become mandatory. Overloading issues remain manageable. Repeat or gross offenders are now kept on site at the delivery point until the driver come up with a workable solution to deal with the overloaded truck.
Marketing Issues
Michael Wood asked the meeting for an indication of current prices. APW $330-$325 port. No market for old crop.
Feed Barley $265 port. Byron Wood advised that any grain in the GrainCorp system can now be accessed via the Clear Grain electronic exchange.
Millers/maltsters
Malting barley old crop prices are around $300 delivered Melbourne/Geelong. Sloop and Schooner varieties are nearly extinct. Scope variety has not been classified as a malting variety yet. Neither is Hindmarsh, and classification is unlikely.
There have been good plantings of Westminster barley in the Western Districts.
Stockfeed
Generally busy, with the dairy segment fairly bouyant. Canola meal is the main input (62%) with soy meal most of the balance. The protein/price equation dictates inputs, with protein supply essential. Cottonseed can be used but is not at present. The market is becoming bullish on milk prices, and there could be a milk shortage in the next 2 – 5 years.
Export marketing
Eastern ports are generally booked out i.e. to September 2013. WA ports are 96% booked. The Auction system gets underway in November, which will provide an interesting insight into central area demand. There was a question as to whether this booking programme was indicative of real shipping demand. This remains to be seen, but the penalties attached to not taking up booked slots are fairly onerous, perhaps around $20 per tonne.
Export competitors are generally $10 - $20 under Australian quotes. Forward sales are behind that of the same time last year.
GrainCorp is now offering hourly adjustment of cash prices posted for GrainCorp sites, between 0600 hours and 2100 hours. Transfers at posted prices must be in minimum 250 tonne lots.
Harvest Roundup
Griffith, Lake Cargelligo, Condobolin, Goolgowi very dry. Crops hanging in, might get to average if it rains very soon. Canola is poor. Since Tabbita feedlot has closed down, there has been a swing to canola.
Crops west of the Newell Highway are fair and struggling. Swan Hill. Rain this week has helped. Harvest will start around 10/15 November, barley a bit earlier. Wheat will average 1.5 tonne/hectare, barley 2tonne/hectare.
Northern Mallee is poor – poor in the top line. Harvest expected to be well down on average. Renmark to Mildura might get to 1 tonne/hectare.
Central Area could produce 3 tonnes per hectare of wheat and 4 tonnes per hectare of barley, perhaps down to 2 tonnes per hectare around Quambatook. Canola will average 1 tonne per hectare. A small swing to cereals is evident.
Birchip to Warracknabeal crops should be about average. Barley 2.5 tonnes per hectare, wheat up to 1.5 tonnes per hectare. Crops are poor around Speed and Nandaly.
Colbinnabin crops are looking good, Dookie about the same.
Crops in the Western District, Cressy/Lismore, are looking very good, but deteriorate a little toward Geelong, particularly Canola.
Harvest has commenced in Western Australia, with total crop expectations well down on last year. The maximum might get to 9.5 million. In South Australia, an average harvest is in prospect, maybe 6 million tonnes of wheat, well down on last year. South Queensland crops have been fairly low in protein this harvest.
Other Business
Members present agreed that instead of having the next general meeting and the 2013 Golf day so close together, it would be better to combine both events and have a meeting in the morning prior to the golf.
Members present had no information on the status of B Triples routes in Victoria. Terry Roche will investigate further. Action: Terry Roche
Next meeting: Monday 25 February 2013. Venue Box Hill Golf Club
Attendees / ApologiesMichael Wood
Chris Liston
Simon McNair
Gerard McMullen
Howard McClelland
Adrian Murphy
Darren Pearson
David Brook
Craig Cochrane
Bill Donnellon
Fiona Sayle
Debbie Maher
Brendan Maher
Andrew Kelso
Peter Sidley
Katrina Liston
Brad Knight
Bill May
Chris Kelly
Nathan Cattle
Andrew Whitney
Andrew Gregor
Chris Ayers
Craig Perkins
Ian Reid
Richard Gale
Cindy Mills (WQA)
Tony Mellington
Reagan Stroud
Byron Wood
Ajay Argawal (Visitor) / Norm Lee
Chris Spano
Richard Wilken
Brian Quirk
Rob Danieli
Jim Morgan
Brad Waterfield
Chris Aucote
Geoff Barker
Peter Allen
Dominic Hogan
Phil McEvoy
Scott Cameron
Dallas Cameron
Jim Riordan
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 www.giav.com.au