Price, not a the shareholding structure, will deetermine whether wheat growers remain loyal to AWB in the new deregulated export market, according to the latest research by pollsters IPSOS.
According to AWB, the IPSOS research confirms that Australian wheat growers will make their grain marketing decisions based on four key factors: price and incentives, security of payment and service.
The research found a unanimous view that price and being a 'good player' are the bottom line when it comes to a 'good buyer' of Australian wheat.
"Whilst there is certainly some positive sentiment towards AWB, wheat growers are most loyal to price and security of payment, so it essentially depends what the deal is," the research found.
"If AWB does not offer a good price or maintain security of payment, then growers will turn to other buyers and distributors that will give them what they want."
AWB says the research undermines claims that the retention of A class shares as part of a dual class share holding structure are essential to maintain grower loyalty in the new deregulated wheat export market.
"A class shares do not factor into grower decisions on whether to do business with AWB versus competitors, even among advocates of A class shares," the IPSOS research says.
"Price per tonne is the primary factor when choosing who to do business with any grain marketer. Reliability and security of payment are also extremely important factors."
AWB managing director, Gordon Davis, said the company wants to amend its constitution so that "AWB has the best possible chance of providing a competitive deal to wheat growers in the new deregulated market".
"If the status quo is maintained, AWB will be forced to compete against bulk handlers and the multinational traders with one hand tied behind its back and will not be able to offer wheat growers the best commercial deal," he said.