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Hockey’s GrainCorp ruling in-line with industry’s position : poll

Joe Hockey’s decision to disallow the acquisition of GrainCorp by Archer Daniels Midland is in-line with what the food and beverage industry believes is best for the country, according to a poll conducted by Food magazine.

The vast majority of voters, who are member of the food and beverage manufacturing industry, were not in favour of US giant Archer Daniels Midland’s $3.4 billion takeover offer for GrainCorp, with 45.61 percent claiming that while GrainCorp has an almost monopoly control of the port grain terminals and storage on Australia’s east cost, it would be better to keep this in Australian hands; and 36.84 percent argued the sale would not be in the best interest of Australian growers.

Just 14.04 percent were in favour of the acquisition, stating that the sale is needed to grow Australia’s agriculture sector and allow it to become a global player, while 3.51 percent were indifferent.

The same poll posted on Food magazine’s sister site, www.fatcow.com.au, which targets member of Australia’s agricultural industry, generated similar responses.

45.75 percent of responses said ADM would have little regard for Australian producers; 32.68 percent said GrainCorp’s monopoly is best kept in Australian hands; 14.38 percent didn’t have a strong view on the matter and just 4.58 percent supported the sale.

Earlier today, Treasurer Joe Hockey ruled against the sale, arguing it was not in Australia’s best interests. He added, however, that he would allow ADM to increase its holding from 19.85 percent to up to 24.9 percent, upon further applications.

 

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