September 4, 2013
An ongoing dispute between the three largest players in the peanut industry – the Kingaroy-based Peanut Company of Australia, the Crawford-based Crumptons Interstate and Clifton Trading – may be close to resolution following talks brokered this week by Agriculture Minister John McVeigh and Member for Nanango Deb Frecklington.
The dispute – which has included legal action launched by PCA – centres on access to different varieties of peanut seed.
It revolves around Plant Breeders Rights (PBR) – the intellectual property rights which give a plant breeder exclusive control over seed and harvested material of a new plant variety – and the compulsory grower levy scheme which has partially funded a peanut breeding program led by PCA.
Tuesday’s meeting was organised in a bid to secure a way forward for the industry after a stalemate threatened to stall planting of next season’s peanut crop.
Mr McVeigh said he was pleased to announce that all parties have agreed to commence commercial mediation on September 12.
“The Grains Research & Development Corporation (GRDC) and the Department of Agriculture, Fisheries and Forestry (DAFF) will support the process by providing background information,” Mr McVeigh said.
The GRDC and DAFF are partners in the Australian Peanut Breeding program which is led by PCA.
“Commercial issues have arisen over growers’ access rights to several peanut varieties,” Mr McVeigh said.
“These include varieties that have been introduced into Queensland from overseas breeding programs or bred in the Australian Peanut Breeding Program funded by GRDC using grower levies, PCA and DAFF.
“The issues have centred on access rights and royalty payments on the use of some varieties covered by PBR and various licensing arrangements.
“I will confirm that my Department will not be party to any legal action against individual peanut growers. However, as co-owners with GRDC of peanut varieties and sponsors of Australia’s biggest crop breeding programs, intellectual property rights and licensing agreements that have been in place for the last decade must be honoured.
“It’s important that all the parties aim to arrive at a constructive and lasting commercial resolution on access rights and contractual obligations surrounding peanut varieties, before this year’s peanut planting commences.”
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Crumpton & Sons general manager Mr Sonie Crumpton said a positive outcome from next week’s mediation would allow for competitive growth in the industry.
He said there was broad agreement that the present situation regarding farmers’ inability to access all varieties of seed developed by the Australian Peanut Breeding Program and other varieties was harming the industry as a whole.
“The round table conference was an excellent start to negotiations to provide an outcome satisfactory to all stakeholders in the industry,” he said,
Mr Crumpton said he was pleased that this week’s meeting was held in good faith. He believed a satisfactory outcome could be achieved for the benefit of all the industry without the need for litigation.
“The efforts of Deb Frecklington and Mr McVeigh to convene the meeting are appreciated by all of the industry,” he said.
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PCA Chief Executive Officer John Howard told southburnett.com.au there had been a number of ongoing issues to do with variety access, PBR, the need to have licences in place to grow varieties, and funding of seed programs.
“Because the issues that have been ongoing were starting to have an impact across the board, the local Member (Deb Frecklington) initiated a meeting between the parties to try and stimulate a process of mediation,” Mr Howard said.
“From that we have agreed to meet again next week to progress to finding a resolution and therefore achieve clarity for the industry going forward so that we can all get on with growing (peanuts) confidently, and growing the industry from a sound base.”
Mr Howard confirmed that the legal action initiated against Crumptons had not been withdrawn.
“It is still going. But the idea is to put the issues on the table and see if we can find a way to mediate a resolution rather than going through with the court (case),” he said.
Neither the GRDC or the State Government are parties in this legal action.
“The only court cases that are in train at the moment are in regards to (the peanut variety) Fisher which GRDC and the government have no rights over,” Mr Howard said.
He said he hoped next week’s mediation would achieve “clarity” on the access requirements for all peanut varieties.
“We’re going into mediation in good faith, We’re going in with the idea to find a resolution,” he said.
