Grains Group president Brett Hosking says the key concern for his organisation is that the draft determination, handed down last Friday, entrenches the current duopoly arrangement at Victorian ports.

“This will reduce competition at ports and is likely to result in growers paying higher charges,” Mr Hosking said.

“In particular, we’re concerned about the peak export window from January to March, where the system is at capacity.

“This is further accentuated by reduced competition right through the supply chain through consolidation of supply chain companies.

“At the end of the day, the VFF is concerned about the same issues that ACCC chair Rod Sims pointed to in a Senate Committee hearing in February — the level of competition at ports and the degree of vertical integration in the supply chain.”

“The draft determinations seem at odds with these comments.”

But GrainCorp Government and Media Relations director Angus Trigg said the draft determination shows the code of conduct works.

“The exemption will reduce regulation and inefficiencies and make our exports more competitive,” he said.

“It demonstrates the flexibility of the code in that where there is competition the regulation falls away.

“And that puts us on a level playing field with our international competition.

“There are 20 companies exporting out of Victoria, with three bulk ports, a fourth on the way and maybe a fifth.

“The average tonnage annually of all grains grown in Victoria is 5.3 million tonnes, with 2.4 million tonnes remaining in the domestic market.

“Of that, 800,000 tonnes goes out for export in shipping containers.

“There are 15 companies exporting out of our facility; there is plenty of competition.”

Mr Trigg said GrainCorp would continue to seek an exemption for its Portland facility, with the final determination of the ACCC due in about a fortnight.