2007/2008 Estimated Silo Returns

Please Note: The following notes and variations were updated on 17 December 2007.

Access a Summary of the Variations to the Previous Site to Sea Estimated Costs.

General Notes

• The "Estimated Silo Return" (ESR) for a storage site approved for the delivery of wheat into the AWB National Pool is calculated as the estimated National Pool return (EPR) plus any applicable "site discount" less the estimated "site to sea" costs involved in receiving, storing and moving wheat from the storage site to port/s and onto a vessel.  

• This ESR Selector shows sites anticipated to be open for the 2007/2008 AWB National Pool No. 1. 

• Some New South Wales sites located close to the Victorian border are shown in the Victorian State Selector to reflect estimated freight costs to the least cost path destination port.
• Please note that the estimate for all WA sites appears low as the displayed estimate excludes any applicable BHC receival fee as these are charged directly to growers.  Whereas, all other BHCs and Private Storage Companies charge all marketers and Traders for receival charges.   
• Similarly, the estimates for WA sites have also been reduced due to favourable Port Cost Differentials associated with the proximity of WA ports to some of the major markets in comparison to ports in other states.    
• Pay grades accepted at each site and the list of active sites may change without notice during harvest.  AWB therefore recommends that you regularly check for service availability and unlisted sites as follows:

• • Ask your local storage operator whether your local sites are active this season. 
  • Contact the AWB Grower Service Centre on 1800 054 433 or make an on-line enquiry to Ask AWB prior to delivery to confirm what pay grades are accepted at your preferred site. 
    
• Information on site availability via the ESR Selector is updated daily.
• Site-To-Sea cost estimates are updated regularly.  This process commenced on the 13th August 2007 for the 2007/2008 National Pool.
• There are three categories of cost that make up the estimated "site to sea" costs and a separate column that indicates where a BHC offers "site discounts" to attract grain.  These columns are:

1       Estimated Pool Return (EPR) is the Free on Board (FOB) GST exclusive price quoted for each pay grade.  This FOB pricing indicates the customer taking on ownership of the grain as it is loaded onto a vessel at the port. 

2     Up country storage cost estimates refer to charges applied by storage agents for the receival, storage and out loading to road and rail transport for wheat.  It also includes a calculation of the cost associated with a component of the shrinkage factor applied by storage agents  to account for loss of weight associated with handling grain.

3    Freight cost estimates relate to the calculated cost associated with moving grain from each storage through to the relevant port or ports.  At some sites the calculation takes into account multiple freight modes (road and rail) and operators.  The estimate may also include the potential for grain to be directed to more than one port.  

4    Port cost estimates refer to the provision of bulk handling services at the port and Port Cost Differentials.  BHC port services include the receival by road and rail, storage, blending and the loading of vessels and a component of the shrinkage factor applied by BHCs.  Port Cost Differentials reflect the relative port and shipping costs associated with exporting grain from each port. More information about AWB Port Cost Differentials (PDF, 18kb).

5    Site Discounts.  A storage operator, wishing to attract grower deliveries to specific sites, may offer a "site discount" to the National Pool for one day, or for an extended period.   A grower that delivers grain into the National Pool on a day that a "site discount" applies will receive the benefit of the "site discount" via the Pool payment process.  Growers who deliver grain into a BHC warehouse arrangement on a "site discount" day and subsequently transfers the grain into the National Pool at a later point of time will also receive the benefit of the reduced supply chain costs. 

AWB publishes a variety of wheat prices across quality parameters, obtain an overview of AWB's Grain Prices.

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