Government Review Recommends Replacing Wheat Port Code with Industry-Managed Framework

The Australian Department of Agriculture, Fisheries and Forestry (DAFF) has recommended replacing the Wheat Port Code with an industry-managed framework, following the release of the second review of the code. The Wheat Port Code, introduced in 2014 to ensure fair and transparent access for wheat exporters to port terminals, was initially set to expire on October 1, 2023. However, the Attorney-General decided to extend its sunset clause until October 1, 2026, to allow time for further review and potential changes.

DAFF's Deputy Secretary for Agriculture, Fisheries, and Forestry Policy, Matt Lowe, explained that while parts of the Wheat Port Code continue to benefit the wheat export industry, the code as it stands is no longer suitable for the current landscape. The review suggests that Grain Trade Australia (GTA) work alongside the grain export industry to develop a new, industry-managed code, building on the aspects of the existing code that still offer value.

The review also proposes that the new industry-led framework include provisions such as:

• A commitment to deal in good faith with grain exporters
• Timely publication of port loading statements
• A dispute resolution mechanism
• Transparent publication of standard terms and reference prices

While some parts of the industry agree with the recommendation to replace the Wheat Port Code, there are divergent views on how to move forward. Bulk wheat port terminal service providers (PTSPs) and the GTA are in favor of an industry-managed framework or the code's complete replacement. However, many exporter groups and supply chain businesses are divided, with some advocating for amendments to the current code, while others believe no code is necessary.

Grower representative organizations generally argue that regulation is still required to address concerns about the potential misuse of market power by PTSPs. Many of these groups believe the current code is insufficient to address price and supply chain issues and are calling for a more robust regulatory regime. Some suggest that this should begin with a broader inquiry into the entire grains market and supply chain, extending beyond wheat to include all grains.

The review also explored the possibility of extending the Wheat Port Code to cover all grains, not just bulk wheat. DAFF concluded that extending the "good faith" principle to all grains would improve the operation of the code, whether under a revised version of the existing code or an industry-led framework.

Stakeholders are invited to provide feedback on the review's findings, with public submissions open until January 31, 2025. Matt Lowe encouraged industry participants to share their views on the future of the Wheat Port Code, stressing that this is an opportunity to shape the regulatory framework moving forward.

This review marks a key step in the ongoing evolution of Australia's grain export regulations, with stakeholders now invited to weigh in on the proposed changes and help shape the future of the industry.