I read with interest Greg Petryshyn’s letter (Open Forum, Feb. 17.) He wrote that Australian wheat farmers are happy and doing better under deregulation because of the higher prices brought about by the multiplicity of buyers.
Though there are now about 30 buyers for Australian on-farm wheat, the higher prices are almost certainly a reflection of the $80 per tonne increase in the world price, not new competition. Those same buyers trying to undercut each other to gain market share are more likely to drive prices down.
An examination of Japanese import statistics comparing wheat purchases since the demise of the Australian Wheat Board to a similar time period immediately before shows that Australia’s usual $20 per tonne premium over U. S wheat turned into a slight discount.
The transport confusion, undercutting and inability to blend in the new multiplayer system has cost the Australian wheat farmers what, $50 million per year? $100 million?
Glenn Tait,Meota, Sask.
