Barley growers will receive final pool payments from AWB two months ahead of schedule, with final payments from its 2009/10 season barley pools to occur overnight tonight (27 October).
Payments will range from $41 a tonne for F2 barley up to almost $53 a tonne for Baudin malting barley, with the final 10% of all upcountry, port and freight costs to be deducted as applicable.
AWB General Manager Commodities, Mitch Morison, said the 2009/10 season was the first time the company had run pools for barley and they had performed well, with strong support both from growers and customers.
“Growers were seeking new competition in the barley market and we had customers in various countries looking to us to supply barley to them, so it was the ideal solution to bring them together,” Mr Morison said.
“Accordingly our pools quickly secured tonnage from growers and we followed our strategy of targeting sales to North Asia and the Middle East, including combination cargoes with wheat and sales into the domestic market where greater value could be achieved.
“The good news is that despite starting in late 2009 when the price outlook was very bearish, we were able to structure a sales program that captured some of the market gain that appeared around mid-2010; the final pool returns for malting barley range up to almost $62 a tonne higher than November estimates and feed grades have increased by $11 a tonne.
“Cash prices don’t pick up improvement like that and it shows how successful a pool can be, especially given the difficult market environment that was last harvest,” Mr Morison said.
External audit of the pool has been completed and 2009/10 final pool returns are:
F1 $177.60, F2 167.60, BA1 & GA1 $267.80, BU1 & VLA1$257.80 ($/tonne FOB, excl GST).
AWB will be running barley pools for the 2010/11 season. The product offer will be further refined and expanded, with three separate barley pools; one for Western Australia, one for South Australia, and one for the eastern seaboard. Full details and estimated pool returns will be released in the near future.
Media Inquiries: Ian Desborough 03 9209 2335 or 0418 853 881