Nationals leader Warren Truss is skeptical about future prospects for the Australian agricultural industry in light of the recent acquisition of GrainCorp by US food and grain corporation, Archer Daniels Midland (ADM).
Truss believes that the takeover will result in Australia eventually losing of control of grain production in the future according to The Land.
“If we keep blithely going along with the domino-effect of one-by-one allowing our successful agribusiness to fall into foreign hands, we’ll have nothing left to call our own,” he said
“All the decisions about Australia’s farming future will be made in boardrooms halfway around the world.”
Truss wants ADM to clarify its plans for the once farmer owned business, as well as whether the US giant has any proposed future investment plans in Australian grain infrastructure.
“Thinking Australians are increasingly highlighting the potential for our country to expand its food sector to feed growing global demand, but this sale would mean that our nation loses control of its grain storage and export facilities and our grain producing future,” he said.
The Nationals have stated that the sell-off of GrainCrop, Australia’s largest listed agribusiness, would be a major test for the Foreign Investment Review Board as failure to act may result in complete foreign ownership of Australia's eastern seaboard grain handling facilities.
Chief executive and chairman of ADM, Patricia Woertz stated that she intended for the company to ensure that its network remains relevant and responsive to growers needs.
“It is in ADM’s interest to ensure that its origination networks and up-country storage facilities are efficiently utilised by providing open access to all owners of grain,” She said.
GrainCorp handles around 80 percent of Queensland, NSW and Victorian grain exports with storage and logistics assets incorporating 280 storage sites, with the capacity for 21 million tonnes and 19 grain trains.