15 April 2013

Landmark Water Market Project

 

The NSW Irrigators' Council (NSWIC) and Ricegrowers' Association of Australia (RGA) have joined forces to undertake a landmark research project into the temporary water market in New South Wales.
 
Council Economic Policy Analyst Stefanie Schulte says the research will examine the factors that drive temporary water market prices. It will also assess the extent to which government action causes price fluctuations.
 
"Irrigators rely heavily on the water market for their business operations, risk mitigation and income generation. A solid understanding of what affects the market is absolutely crucial.
 
"The water market has grown significantly over the past decade. We have seen an increase in both the number of trades and the volumes that are traded. It is evident that the water market is becoming more sophisticated and the market depth is increasing.
 
Project Manager at the RGA, Andrew Bomm, says that water market prices have been very volatile. The project aims to uncover the drivers of that volatility.
 
"Water market prices are dependent on a range of different factors, some of which we currently do not fully understand.
 
"Data on temporary water market trades is in some cases limited and we are unsure of the effect of barriers to trade that currently exist. This makes the analysis more complex. We need to understand what information is currently available so that we can target further research to fill the gaps.
 
NSWIC Chief Executive Officer, Andrew Gregson, says the research is long overdue.
 
"It is a fantastic outcome that these two leading peak bodies have taken the initiative to conduct this research. It's vital, it wasn't being undertaken by others and we're looking forward to providing the outcome to our irrigators."
 
ENDS
 
 For further information: NSW Irrigators Council
Stefanie Schulte, Economic Policy Analyst
Office: 02 9251 8466                             Mobile: 0411 700 883                            Approved:         RS / TG
 
Ricegrowers' Association of Australia
Andrew Bomm, Policy Officer
Office: 02 6953 0410                             Mobile: 0408 279 006