AWB Limited Chief Executive, Mr Andrew Lindberg, today announced a very strong estimated pool return for the 2001/2002 marketing season
Speaking at the annual ABARE Outlook conference in Canberra, Mr Lindberg said that projections showed that farmers would receive between $227 and $237 per tonne for APW at 10 per cent protein (GST inclusive).
“This is a good forecast for farmers,” said Mr Lindberg. “World wheat prices have been depressed, but this shows there is light at the end of the tunnel. Wheat consumption is expected to outstrip supply for the third year in a row, and this should help to further reduce world stocks.
“The last twelve months have seen wheat prices for Australian producers firm to the second highest level in the last decade due, in part, to favorable currency and the successful operation of the Single Desk,” said Mr Lindberg.
Mr Lindberg was careful to explain that a number of factors could still have an impact on price estimates, including China’s possible re-entry into the buying market, variable demand in the Middle East, as well as growing conditions in the Northern Hemisphere.
Mr Lindberg also took the opportunity to announce a higher benchmark for Australian wheat, with APW wheat of 10 per cent protein or higher now making up the majority of Australian deliveries.
“Six years ago, we were seeing average protein levels continually drop. And we knew that unless we did something about it, we would be competing against the Americans and Europeans in the high volume/low quality game – a game we couldn’t win,” said Mr Lindberg.
“We introduced our 2 by 10 by 2000 campaign to increase protein levels and average yields. And I am pleased to say that we have achieved our goal.”
In his Outlook speech, Mr Lindberg also outlined AWB’s marketing strategy, saying that there will be a greater focus on making sure that Australia is supplying the type of wheat customers demand.
“The future of wheat marketing lies in being flexible enough to adapt to changes in demand patterns. Our Golden Rewards program makes sure that when growers deliver the high quality product that our customers demand, they are paid accordingly,” Mr Lindberg said.
For further information contact Peter McBride on (03) 9209 2174 or 0417 662 451 or Paul Ryan on 0408 347 282