Grains sector positive on co-operatives

The program has been designed to help the agriculture sector capture greater supply chain value.

Andrew Weidemann, chairman of Grain Producers Australia (GPA), said the funding showed the Government felt there was a big future for grower operated co-operatives.

He said GPA also felt there would be a significant role for co-operatives in the grains industry into the future.

“Co-operatives can be a great way of taking links out of the supply chain and creating value for growers.”

Mr Weidemann said the funding could be used to help develop the necessary skillsets for running a co-operative business.

“There are difference between co-operatives and businesses run on corporate lines and to create a strong co-operative sector it will be good to have people who understand the area thoroughly.”

Rebecca Reardon, a farmer in the Moree area with experience in the co-operative sector in the past, said co-operatives were a good way of reducing supply chain costs.

“What co-operatives can do is ensure that savings made through the supply chain can be passed back directly to growers.”

Grain Growers (GGL) chairman John Eastburn said funding for co-operatives would be welcomed.

“Co-operatives can work really well, but we’ve seen in my local area in NSW problems with trading losses,” Mr Eastburn said.

“Anything that can help co-operatives be more resilient would be fantastic, as when you see co-operatives go under, often because of non-payment from a customer further up the line, it can impact entire communities.”

Mr Weidemann said co-operatives could play a big role in Australian agriculture.

“I’ve spoken to visitors from South America, where co-operatives play a massive role in their grains industry, and they are always surprised at how small a role co-operatives play,” he said.

“The scope is there, in today’s environment, where customers and producers can be linked easily, for more co-operatives to get off the ground.”