AWB Limited today announced it will make a $90 million second draw down to the vast majority of growers who selected AWB National Pool Harvest Payment in 2001/2002 AWB National Pool.
AWB Limited’s Chief Executive Andrew Lindberg said the second draw down was possible after completing a thorough assessment of AWB National Pool performance to date.
AWB National Pool performance incorporates international sales, foreign exchange management, futures management, position management, and logistic management from wheat receival silos up country to international customers.
“The payments will vary according to grade, but the additional cash flow will be welcomed by many growers about to start their 2002 planting program,” said Mr Lindberg.
“The payments to growers will be between $5 and $15 per tonne. However, AWB is not in a position to make a second payment to growers participating in ASWN, APH pool pay grades with a protein level higher than 14 percent, or the handful of growers who are not registered for GST.
“World wheat prices for milling style wheat have fallen nearly $30 per tonne, but during that period AWB has been able to cushion the impact on the National Pool by $10 per tonne for the majority of pay grades.
“However, the impact of falling wheat prices and slow export demand has been particularly significant for ASWN with the Estimated Pool Return falling from $288 to $260 since November 2001, and APH falling from $283.50 to $261.00 over the same period.
“During the same time world noodle wheat prices have fallen approximately $34 per tonne and hard wheat prices have fallen approximately $38 per tonne, further demonstrating the success of AWB’s sale program and pool management performance.
“Growers who receive the second draw down will be paid at the varietal pool base rate. This will make the calculations and the paperwork much easier for growers to reconcile said Mr Lindberg.
The attached table shows the breakdown of the payment in relation to AWB National Pool pay grades.
The second AWB National Pool Harvest Payment draw down will be paid in the week commencing 27th May 2002 and growers have the choice of accepting the additional funds or not.
Growers need to be aware that AWB’s Guaranteed Pool Return remains constant as of the announcement date – 5th November 2001.
Growers who do not want the additional drawing have two options:
- They can telephone AWB’s service centre on 1800 054 433 before the 16th May 2002: or
- Growers can return the funds to AWB Limited once it is paid into their account. This must be done within two weeks of the payment date to avoid additional interest charges on Harvest Payment accounts.