AWB (International) Limited (“AWBI”), a subsidiary company of AWB Limited, is the Government-mandated exclusive exporter of Australian bulk wheat under the Single Desk marketing system. This Single Desk allows AWB to offer the AWB National Pool, which is open to all of Australia’s 30,000 wheat growers. Both AWBI and AWB Limited have a constitutional mandate to maximise returns to those who deliver wheat to the AWB National Pool. The AWB National Pool involves, on average, $4 billion worth of Australian wheat being marketed annually to around 100 customers in more than 40 countries worldwide.
Operating the AWB National Pool requires managing the grain supply chain from over 700 receival points across the Australian wheat-belt right through to international consumers. AWB manages the currency and commodity risks associated with the Pool’s export program. AWB also actively shapes the national wheat crop by blending and segregating wheat into more than 30 different grades for export as well as sending international market signals back through to growers so can tailor the crop profile to suit demand. These activities are supported through quality testing to ensure the integrity of the Australia wheat product, and through integrated research and development projects.
The AWB National Pool is the marketing system of choice for the vast majority of Australia’s wheat growers. That's because it gives growers real power. The power to compete in international grain and finance markets. The power to drive efficiencies through storage, handling and transport. The power to capture and deliver all the value back to wheat-growers.
In so doing, it maximises grower returns & viability. Respected economists, Econtech, found the Single Desk was worth on average $13 per tonne in additional value to Australian growers, that's more than $200 million per annum back in growers hands. No wonder it's the preferred marketing system of the vast majority of Australian growers.
AWB Pool Management Services
- Understands world wheat flows & customer needs to generate wheat sales
- Secures international finance
- Conducts FX & commodity hedging through prudent risk management programs
- Provides price stability & global price parity for growers in the Australian domestic cash market
- Identifies international customer product needs & gives growers clear market signals through crop shaping activities such as preferred varieties, receival standards, segregation strategies, breeding quality targets, blending and the accurate market signals of the Golden Rewards payment system.
- Equitably distributes all funds generated to pool participants through AWB Golden Rewards
- Controls logistics & product assembly, allowing AWB to manage the integrity of the pool product from inside the farm gate to the end-use customer, ensuring delivery of the best quality product fro consumption
AWB pool management services generate & capture value from all parts of the value chain, from "paddock-to-plate", on behalf of growers to improve returns.
AWB National Pool Distributions
- AWB National Pool distributes funds based on actual sales receipts less direct costs, providing varying cash-flow from each Pay Grade.
- AWB has access to working capital to manage Pool cash-flows & ensure the efficient working of AWB National Pool.
Working capital is needed to:
- pay supply chain service providers to move wheat to customers shortly after harvest
- fund pre-harvest hedging positions needed to fund margin accounts and pay financial option premiums
- maximise distribution amounts, which are paid on a GST inclusive basis, using all available funds on a GST exclusive basis
- distribute available pool funds each calendar quarter which is considered to be the optimum timing for cost effective cash-flow
- facilitate finalisation of the prior season AWB National Pool
Wheat Grades
AWB develops and segregates specific wheat varieties based on protein content and quality, grain hardness, starch quality characteristics and receival standards.
Australian wheat is classified into six major market grades including Australian Prime Hard (APH), Australian Hard (AH), Australian Premium White (APW), Australian Standard White (ASW), Australian Soft (AS) and Australian Premium Durum (APDR). However, each year more than 50 different wheat products are exported to discerning customers, each targeted for producing specific wheat flour based foods. There is an AWB wheat grade suitable for producing a multitude of noodles, pan breads, flat breads, steamed buns cakes, snack foods and pastries.
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