CONCERNS are brewing about the corporatisation of fresh produce markets across the country after South Australia lost its spot on the board of Perth Wholesale Markets.
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Despite holding a 13.29 per cent share in PWM, SA Produce Markets representative, Tony Ceravolo - from Ceravolo Orchards in the Adelaide Hills - lost his spot in a move that is being labelled as another step in a takeover attempt by Brisbane Markets Limited.
The Brisbane Wholesale Market holds a majority share and maintains a controlling interest in Perth after executing a proportional takeover earlier this year.
But, the majority of Perth industry shareholders and SAPML did not support the proportional takeover, leading to a standstill agreement between BML and PML last month to keep BML's shares at 49 per cent for the next five years.
SAPML chair, Joanna Andrew, has expressed major concern about BML's intentions and the ramifications it could have on competitiveness within the fresh produce industry, and the cost ramifications on growers and consumers.
"This is a step closer for Brisbane's aspirations in owning wholesale markets around the country and eventually listing on the ASX which should pose serious questions on competitiveness within the industry," she said.
"The reason why this is a concern for national markets is because it will decrease competition nationally and increase costs for growers and consumers.
"The other important aspect of this is the significant costs of corporatisation and whether that's in the best interests of industry, or whether our markets should remain in local industry control."
SAPML says Brisbane Markets has failed to demonstrate how them having a controlling interest in Perth Markets would benefit the markets and its stakeholders.
"This latest move has immense potential to harm our industry, and we call for the immediate reinstatement of an SA Board member on the Perth Markets Limited Board," Ms Andrews said.
BML has responded to concerns about its takeover by saying it currently only had one director on the PML Board out of eight directors.
"BML has the right to appoint a second director in accordance with the Standstill Agreement but has not exercised that right while the board structure is reviewed," its statement said.
It said the election process was carried out following the PML constitution.
"SAPML was offered a compromise solution, that was supported by BML, to retain a board position on the PML Board for the forthcoming year while the board structure was reviewed," its statement said.
"SAMPL instead chose to proceed with the election process at the annual general meeting."
Ms Andrews said there had also been discussions about what would happen in the event that the Melbourne produce market privatises.
She said Adelaide's SA Produce Market is in a relatively safe position from takeover attempts because it only allows shareholders to hold a maximum 15pc stake and requires that 51pc be held from within industry.
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