UWG DIRECTOR MEETINGS

Monday, 22 May, 2006

The Directors of UWG have met twice this year to date - 10th March and 16th May. A summary of the meeting held in March is below and a summary of the May meeting will be posted shortly. A meeting with FMG is planned for June to renegotiate the Insurance Contract and the AGM has now been set down for Thursday 29th June at the Sudima Grand Chancellor Hotel in Christchurch.

10th March Meeting

A round-up of the 2006 harvest showed a general trend of poorer yields in all growing regions with yields expected to be 15% down on average. BYDV has been a major contributing factor.

Subsequent discussions with local flour mills would show tonnages to be 25 - 30% down on contract. Quality is generally good other than later harvested wheat that suffered from sprouting.

The QA taskforce is due to meet prior to the winter and discuss the ongoing funding of the scheme. The board is not prepared to commit funds on an ongoing basis and it will be proposed to the taskforce that a nominal registration fee be charged to members and industry contributes through an increased charge for access to the database.

The disaster relief insurance scheme has been subject to a large number of events in the 2005 season. The full impact of claim value will not be known until all assessments are returned but estimates would put the claim ratio somewhere near the three year rolling average.

Frost claims in Canterbury have highlighted an issue with modern varieties that is of some concern. What appeared to be frost has generally been put down to heat stress or drought following Dr Don Wright's analysis. To protect the scheme we have an obligation to ensure that this issue is well understood and farmers are aware of the variability these varieties may provide in our climate.

Many Electoral committee members have had a very busy season in their assessing role and their commitment and efficiency should be acknowledged.

In conjunction with FAR, UWG is again funding a levy compliance audit which will verify compliance of a sample of farmers, merchants and processors.

Chairman John Wright is to attend Grains Week 2006 in Canberra in the first week of April with a goal of assessing the Australian intentions on industry deregulation and observing current industry issues.

Flour mills are not expected to be releasing contracts for a number of weeks yet. We have asked that variety requirements be highlighted as soon as possible so that growers can make planting decisions. Regarding contract pricing there are no signals from the mills at this stage. Over the next three weeks we will be providing further information on price comparisons to assist growers making contracting decisions.

The Board will meet again in mid May.

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