Tag Archives: accc

Stop the Sale of Graincorp – it is not in our national interest – please consider the sale of these assets continue to threaten our food security. How can we pay off our national debt if we continue to sell our wealth creating assets?

If you do nothing else this week send two emails before the election to these two politicians.


[email protected]
[email protected]

Spread the word for your friends to do the same. Here are the reasons why.
Whoever is the treasurer next week will have the final say on the sale of this public company to the US owned ADM. The sale has already been approved by the FIRB (all public servants) and the ACCC. Together these organisations have a history of never saying no to foreign takeovers. Every major food commodity except rice is now majority controlled beyond the farm gate by foreign interests.
It is not foreign investment when they buy our assets and our cash flow. It is takeover.
When foreign companies or countries own the assets beyond the farm gate is makes our farmers price takers not price makers. Foreign owned companies do not pay the same taxes as Australian owned businesses – only 10% withholding tax on their declared profits, and borrow off shore at low interest rates which then adds to our national debt.
We do not count the cost of loss to Australian if these assets are owned by private interests or a public company which does not trade here.
Already 20% of our grain exports are owned by Cargill a private US family company that also controls many of our beef exports and the processing infrastructure. Once Australian grain was sold as the best in the world, now it is bundled in so that the foreign owners’ countries give priority to their own.
25% of Graincorp shareholders have said no. ADM needs 51% to buy the company.
If they want to invest then they can buy up to 49% of the shares and keep the company here so Australians have the chance to invest in our own country and companies.
If Australia is to take advantage of the Asian Century then we urgently need to secure the benefits all Australians will derive.

Who is Looking After Our Interests?

The SPC story of declining demand highlights the plight of our farmers and manufacturers yet again. We can only hope that a public company can get the attention of the Ministers for Agriculture and Trade, because they have certainly not been listening for decades. The Australian Companies Institute Limited (AUSBUY) has warned of the consequences of poor policies and loss of control of our assets for nearly 22 years. Reduced demand for farm goods, value added by manufacturers here needs to be addressed because the food industry is the last major manufacturing sector we have which represents a broad cross section of small, medium and large business throughout our regions.

The story is more complicated than at first appears. We have been complicit in the deteriorating situation for over two decades. Australia’s largess without a long term strategic plan has exacerbated our food security. Open door policies signed under the WTO and OECD Agreements, Free Trade Agreements that have rarely been to our advantage; reduced funding over the years for gatekeepers such as Bio Security Australia and AQIS; little control over the standards of imports relative to the standards required of our farmers and manufacturers; poor labelling laws showing country of origin; the high dollar; ACCC’s approval of control of every major food commodity except rice beyond the farm gate by foreign owned companies making our farmers price takers not price makers; loss of major iconic brands which are Australian owned; the growth of private label further eroding profits for local manufacturers;  and the ACCC’s recent  determination that there will be no code of conduct for retailers, all add to our food industry woes.

While SPC cites the high dollar and competition from own brand, private labels in supermarkets, the issue is a little more complicated. SPC’s lower demand for Australian fruit was exacerbated in recent years when they dismantled a factory in Shepparton and set it up in Spain, because Australian exports have an 18% tariff into the EU. This made sense for SPC and the Spanish farmers and factory workers there, but not for Australia. Coca Coal Amatil appreciated the value of the SPC brand. Its prestige both here and overseas built up over generations by the farmers’ cooperative.

What is happening to all the Australian owned manufacturers who do not have the might of Coca Cola Amatil? We should be supporting our owned brands. We can only hope that this will be wake up call. Consumers are increasingly concerned about where our food comes from and where our jobs are generated. That concern should be reflected by our policy makers. We need to listen to our owned while we still can. Sign the AUSBUY petition to ask for a hold on foreign sales until we have a national interest test.

Lynne Wilkinson

CEO – Australian Company Institute Limited

 

 

In Reference to:

SPC production cut to slice 50 percent of fruit growers crop

  • April 24, 2013
  • Sophie Langley

Australian industry groups are offering support to 170 Goulburn Valley fruitgrowers after food processing company SPC Ardmona said it would not be taking their produce from 1 May 2013.

The Company, which is a subsidiary of Coca Cola Amatil (CCA), said the high Australian dollar and competition from cheaper imported products have left it no choice. It forecast a reduction of up to 50 per cent in intake for some fruit categories for the 2014 season.

Australian Food News reported in February 2013 that SPC Ardmona’s troubles had led to a 22 per cent drop in earnings for its parent company CCA.

SPC Ardmona said it is currently half way through what it termed a three-year “business transformation strategy”, which aims to address issues of efficiency and waste reduction throughout the entire business. The Company said it plans to work with key retailers, who it believes do want to support Australian fruit growers.

“We are not competing on a level playing field against the overseas sourced private label products,” said Peter Kelly, Managing Director SPC Ardmona. “We are competing against products from countries that have considerably lower labour and production costs and arguably lower quality standards than we have in Australia,” he said.

“A more than 50 per cent appreciation in the Australian dollar in the past four years has made cheap imported food even cheaper and has also severely impacted on our export markets,” Mr Kelly said.

SPC Ardmona said market share of imported private label canned fruit had grown to 58 per cent, while SPC Ardmona canned fruit share had declined to 33 per cent and the Company’s export market volumes had declined by 90 per cent in the past five years.

According to data from market research organisation Nielsen, published in ‘Retail World Grocery Guide 2012’, SPC Ardmona had 50.2 per cent value share and 40.8 per cent volume share of the shelf-stable fruit category in 2012. The grocery guide showed that in 2012, private label products had 29.1 per cent value share in the category, and 39.8 per cent volume share.

The Company said it would be seeking temporary tariff protection relief from the Australian Government to assist the fruit processing industry during the period of the strong Australian dollar, and more effectively market its brands to consumers with “stronger Australian grown and Australian made messages”.

Speaking to the Australian Broadcasting Corporation’s (ABC) AM radio program, John Wilson, spokesperson for industry body Fruit Growers’ Victoria, agreed that the high Australian dollar was a big challenge for the sector.

“A combination of the collapse of global markets in North America and Europe and an oversupply of canned fruit; at the same time our Australian dollar purchasing power increased,” Mr Wilson told the ABC program. “And unfortunately the cannery can’t meet that competition on a short-term turnaround,” he said.

Mr Wilson said the fruit growing sector needed a “restructure program, a restructure package that has a transition and an exit component in it for the health of fruit growing right across the district”.

Cost of Living Rises – Why

In response to the article on The Punch http://www.thepunch.com.au/articles/theres-more-to-the-cost-of-living-race-than-flinging-money/desc/

These are the personal unintended consequences of globalism and consolidation of assets into fewer hands, especially those off shore. The response from our government is to put a “For Sale” sign on our wealth creating assets so that the decisions are made off shore, the profits leave here aided by our generous tax concessions to foreign companies (and countries), the ACCC finds it hard to say no to any takeover and the FIRB does not count the cost of strategic assets sold to countries.

Prices will rise because they can, our governments have failed to plan, which means businesses close and the hand out queue becomes bigger, although business owners rarely ask for hand outs even if they close their doors. They are the forgotten people. More then ever we need to support our owned businesses. And decisions makers need to check where their priorities really are. Here or elsewhere. Hope will return when our leaders are working for us not the others.

AUSBUY believes that only Australian ownership means the profits, skills, jobs, reinvestment and decisions stay here.  Support Australian Owned, buy the new AUSBUY Guide which is now available for purchase over 2000 supermarkets nationwide. Click here to find your nearest stockist. The AUSBUY Guide remains the most comprehensive list of Australian owned businesses to help you spend wisely.

AUSBUY Buying Guide V37

Clash of Concerns over Foreign Ownership of Australian Agriculture

AUSBUY‘s comment on the story on ABC’s The World Today – http://www.abc.net.au/worldtoday/content/2013/s3701228.htm

Good to see discussion about this issue. AUSBUY raised the issue of Food Security over four years ago, now it is fashionable to talk about it. AUSBUY raised a petition asking for a national interest test early in 2012 based on the need for a national interest test. New Zealand stopped the sale of 8 dairy farms to the Chinese because it did not meet the national interest test. We have no mechanisms.

Ownership and investment are important issues. Put simply only Australian majority ownership means the decisions, profits, jobs, skills and reinvestment stay here. As a country we do not have a strategic long term plan about any industry let alone the industry which helped build our wealth, based on our clean green growing environment. Over the past few decades we have allowed control beyond the farm gate of all major food commodities except rice, as overseen by the ACCC.  We have deregulated industries and made our farmer price takers not price makers. Hence on farm income has been in decline for decades matched by rising debt. Any wonder farmers are selling their land. These skills and knowledge of the land are being lost.  And there are no mechanisms in place to give priority to our owned.

All our trading partners fund their growers (average $41k compared to $4k for Australian farmers). Policies were based on the false assumption that we export most of our food, whereas we only export more than 50% of our beef, wheat and fibre. Based on this false assumption we have signed FTAs giving ready access to our markets. We have not counted the decline since 1998 (simply do not want to recognise the unintended consequences of decisions).The high AUD$ is hurting our growers and manufacturers ever  more.

Foreign owned manufacturers close factories here, set up off shore and sell back to us.  Our tax laws favour foreign interests (10% withholding tax) and FIRB thresholds mask what is really happening. Canadian Super Funds are buying our assets yet there are no mechanisms for Australians to invest in our own country.

Bill Heffernan is one of the few politicians prepared to look at this. AUSBUY has been focusing on the importance of ownership since 1991. A petition about foreign ownership was presented to Parliament in December 2012 with 55,000 signatures.  Who will pay off our rising debt? It will not be the foreign countries and companies buying our wealth creating assets.