AWB National Pool today announced a third distribution payment from the 2001/02 season, with more than $715 million to be paid to wheat growers across Australia next week.
General Manager AWB National Pool Sarah Scales said the distribution reflected a well executed sales and shipping program, within a market where demand was weak and competition strong.
"AWB has continued to make good sales despite the considerable competition in the market from non traditional export origins such as India and Eastern Europe," Ms Scales said.
"We are managing a large logistical program from the 2001/02 production year and given the current volatile marketing environment, rising prices and very tight Australian and world wheat production we are taking a strategic approach to stock and asset management.
"By constantly reviewing wheat allocations to specific customers and tailoring sales and shipping programs accordingly we can improve the gross pool value and ultimately increase returns to growers.
"AWB’s active currency and futures management, combined with our good marketing progress, is keeping growers on track for outstanding returns from the 2001/02 season," Ms Scales said.
AWB actively manages US dollar (USD) wheat sales, allocates different wheat grades to customers around the world and links this to sophisticated derivative and risk management programs over the life of the pool. AWB converts these USD revenues into Australian dollars following a stringent foreign exchange hedging policy. We focus on the costs side of growers business by seeking least cost storage, handling & freight paths to ultimately deliver equitable returns to all AWB National Pool participants.
The third distribution for benchmark APW is $35.65 per tonne (FOB, GST Exclusive), taking the total amount distributed for that pay grade (at 10% protein, 5% screenings) to $127.24/t - approximately 50% of the current Estimated Pool Return.
AWB is also in a position to make strong distributions for APH, AH, feed grades, durum grades and GUW, after making shipments and receiving revenue for wheat from those grades.
For growers who selected the Harvest Payment option this season, the distribution payment will immediately offset their loan amount. For growers who adopted the distribution payment, the instalment will be made into their account early next week.
The fourth distribution will be made early in January 2003 and fifth distribution in April 2003.