A LONG-awaited final report into the rise in domestic and global fertiliser prices is expected to recommend Australia's fertiliser industry tidy up its act and be ordered to provide more details to the market on the supply and demand of fertiliser.
A Senate select committee on agriculture and related industries, chaired by Liberal Senator, Bill Heffernan, will table its report in Parliament today following an extensive investigation into the exorbitant rise in fertiliser prices during 2007 and 2008.
It heard evidence that during that period prices for fertiliser in Australia rose by as much as 100 per cent, but took submissions which told of a 400pc increase in certain areas.
Following recommendations from farm lobby groups, the committee is expected to recommend an independent price monitoring body be established to carefully watch fertiliser prices and provide farmers with more accurate and detailed market information, and show the difference between global and domestic prices.
The committee heard specific allegations of collusion and market manipulation, in particular from Australia's largest wheat grower Ron Greentree against Incitec Pivot.
Following his evidence the committee is also likely to recommend a strengthening of the powers of the competition watchdog, the Australian Competition and Consumer Commission (ACCC).
Mr Greentree told the Senate committee in May that he was sure there was an arrangement between competitors IPL and Orica which did not allow operators like him into the market.
Mr Greentree, who this year planted 94,000 hectares of wheat, chickpeas and barley on his North West NSW properties, alleged domestic retail prices on the east coast were "fixed" and set at the same level by the two companies.
The ACCC is believed to now be investigating Mr Greentree's allegations.
While Senator Heffernan was unable to speak specifically on the report or its findings prior to its tabling today, he told Rural Press that by shining the spotlight on fertiliser prices through its investigation, the inquiry had already had an impact on the behaviour of players within the Australian market.
Senator Heffernan said he would use the success of this inquiry to argue for his committee to be kept.
Labor and The Greens have suggested abolishing the committee and moving some of its investigations into other areas, but Senator Heffernan said his committee has more work ahead in the areas of food security and the future of farming in Australia and its work was vital in that regard.
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