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 WAFarmers backs retention of AWB dual-class shares 

WAFarmers backs retention of AWB dual-class shares

25 Jul, 2008 04:25 PM
The Western Australian Farmers Federation is urging its members to vote against AWB's push for a single-class share structure, arguing the retention of A-class shares will encourage grower loyalty to the company.

WAFarmers has also defended its alliance with Emerald, which will see a WAFarmers Wheat Pool established and available to members.

It says the alliance with Emerald demonstrates the value of grower loyalty.

The group accused AWB chief executive, Gordon Davis, of underestimating the importance of this trait among growers.

"We are flattered at Mr Davis's interest in the WAFarmers Wheat Pool managed by Emerald, but believe his concerns confirm the value of grower loyalty; loyalty that WAFarmers hope to receive from its members this season, and a loyalty that the majority of AWB's A-Class directors are fighting to keep," WAFarmers Grains Section president Derek Clauson said.

"WAFarmers is not secretive about the WAFarmers Wheat Pool, and notes this is not a conflict of interest on its policy formation.

"AWB should be well aware of the fact that WAFarmers commercial arrangements are kept separate from WAFarmers policy formation."

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Date: Newest first | Oldest first
Once the deregulated market is in full swing and growers realise that there are higher prices on offer from traders they are not 'loyal' to, they will reconsider any notion of loyalty. Unfortunately, by the time they realise all this, AWB will have diminished in its ability to compete at the cutting edge of a deregulated market, further diminishing its role in the Australian grain industry.
Posted by salters, 28/07/2008 9:00:43 AM
How does Mr Clauson make comments about AWB being a 'grower controlled company' and the importance of being loyal to it, without breaking into a smile. He is, after all, responsible for coming up with a plan to wave a competitor cloaked in the banner of WAFarmers in growers' faces.

Come on Derek, the game's up, it's time you let go of the anger you are directing at AWB for not delivering your 'demerger'.

Let the real wheatgrowers focus on a bright future with a large number of strong competitors, including the AWB, competing for their grain.

Posted by Anaconda, 29/07/2008 12:18:34 PM

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