AWB will be offering an early commitment premium of $15 a tonne to those growers who make the earliest decision to sign up to AWB’s 2009/10 season wheat pools, with the new contract available from Monday, 17 August.

The premium is one of the many new features in AWB’s 2009/10 season pool offerings, which AWB believes will help set a new benchmark for grain grower certainty, simplicity, transparency and most importantly, performance.
 
“Our research amongst the grower community has told us that a strong majority of growers see pools as an important part of their wheat marketing program, as well as what they want those pools to incorporate,” according to AWB’s Australian Commodity Management spokesman, Stuart Richardson.

“They want performance; we’ve forged strong relationships – some decades old – with buyers in key regions including the Middle East, South-East Asia, the Pacific, Africa and here in Australia. These relationships provide real value, because we know our customers’ quality requirements very well and they know and trust us, which is not something that can be achieved overnight.”

Key features of AWB’s 2009/10 season wheat pools include:

• Two tranches of Early Commitment Premium; the first available from 17 August offers a $15 a tonne premium to the final pool return
• A maximum washout fee on contracts of $25 per tonne
• Distributions guaranteed to occur in the months of:
• April 2010
• July 2010
• October 2010
• January 2011
• Aim to finalise by April 2011
• Greater certainty and simplicity with both the AWB Loan and Advanced Payment funded at 70% of the Nominated Estimated Pool Return less estimated costs.

“Growers asked for a greater benefit for those who offer the earliest commitment to the pools, recognising that the whole pool gains an advantage from early tonnage certainty, hence our premium offer.

“Those growers who commit earliest gain the highest premium, with a second tranche available later, which meets the feedback we’ve received.

“Ultimately, it’s the final pool return that counts, which is determined by the skill and experience of those managing the pool,” Mr Richardson said.

AWB encourages growers to check the AWB website and familiarise themselves with the terms and conditions for its 2009/10 season wheat pools, before entering into wheat supply contracts.

* WEA disclaimer - "AWB’s ability to export wheat in bulk is dependant on being granted reaccreditation under the Wheat Export Accreditation Scheme."

AWB media contact: Ian Desborough 03 9209 2335 or 0418 853 881

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