AWB Limited has made a 240,000 tonne sale of Australian wheat to the Egyptian Government, taking advantage of strong white wheat prices and adding to one of its most successful recent sales campaigns to Egypt.
The new sale takes the total volume of wheat supplied to the Egyptian Government during the past 12 months to more than 1.2 million tonnes – the largest AWB program since 1994, and worth about $300 million to Australian wheat growers.
Chief Executive Andrew Lindberg said AWB had significantly increased its share of the large Egyptian market this year, with Australian wheat accounting for 35% of the annual purchases by the Government buying agency, the General Authority of Supply Commodities.
“Egypt is a white wheat buyer and AWB has maximised its opportunities within the strong soft white wheat market during the past twelve months, despite increased export competition,” Mr Lindberg said.
“We have a long and successful trade relationship with the Egyptian Government, and we have been able to continue and expand that relationship this year despite the tough economic environment in Egypt.
“This latest sale is a large parcel of wheat that adds significant value to AWB’s National Pool, and is one that creates a positive ripple effect in terms of our whole marketing and logistics strategy.
“The National Pool also benefits from sales such as this through the millions of dollars of savings in carry charges alone,” Mr Lindberg said.
Mr Lindberg said ASW wheat had become a significant component of Egypt’s subsidised bread market, due to its high extraction rates and production of bright white flour.
AWB’s growers and shareholders have also benefited from another AWB success story in Egypt – the joint venture investment in Five Star Flour Mill.
After being commissioned in 1998, Five Star Flour Mill last year received its one millionth tonne of Australian wheat, and has grown to become one of the largest mills in the Middle East.
“The flour from the Five Star mill is produced from 100% Australian wheat, which directly benefits the National Pool and Australian wheat producers,” Mr Lindberg said.
“The success of the mill vindicates AWB’s investment and diversification strategies, and proves they are working for growers and shareholders,” Mr Lindberg said.
Construction is also underway for a new animal feed mill as an expansion of the Five Star investment, to further supplement AWB business and create a more secure demand for its products.