Australian wheat growers are set to receive more equitable payment for their grain quality, with today’s launch of AWB Golden Rewards active payment scales for moisture content that complement existing scales for protein and screenings.
AWB National Pool Manager Sarah Scales said the incorporation of moisture in AWB Golden Rewards means growers will now receive a premium for all wheat deliveries less than AWB’s 12.5% moisture base rate.
“Golden Rewards has proven a real success story so far, following its introduction in 2000 with protein and screenings, and its proven ability to offer a more equitable payment system for wheat managed by AWB National Pool,” Ms Scales said.
“After extensive research we have now developed a similar active payment scale for moisture content between 8 and 13.5% (13.5% - WA/SA, 13% - NSW, Qld & Vic), which values moisture on weight, production capability and quality in the milling process, as well as the risks involved with storage and handling,” Ms Scales said.
Ms Scales said the active payment scales provided incremental premiums for each 0.1% change in moisture content around the quoted base rate at 12.5%.
“We would expect more than 95% of AWB wheat deliveries will have less than 12.5% moisture, all of which will attract that Golden Rewards premium,” Ms Scales said.
“On current estimates, a grower who delivers wheat with a 10.5% moisture content will receive a Golden Rewards premium of $5 per tonne (FOB,GST exclusive) for moisture alone,” Ms Scales said.
AWB has also introduced more flexibility for growers, and bulk handlers, when wheat cannot meet the 12.5% receival standard for moisture content.
“We have increased the moisture tolerance limit to 13% in New South Wales, Victoria and Queensland, and to 13.5% in South Australia and Western Australia,” Ms Scales said.
“The increased tolerance limit means bulk handlers have more flexibility to receive wheat up to the new levels, provided they can outturn wheat at the contracted levels required by our international and domestic customers.
“The different tolerance limits for different states reflects domestic customer requirements, and the varying climatic conditions which affect the ability of bulk handlers to manage higher moisture grain and meet outturn standards,” Ms Scales said.
Ms Scales said AWB must continue to ensure it is providing our customers with the clean, dry and white wheat that Australia has established a reputation for providing.
“Lower moisture wheat results in more wheat actually delivered, more flour produced, less risk in storage and handling, greater market access and preference by customers,” Ms Scales said.
Today’s announcement follows months of work by AWB’s moisture taskforce – which included representatives from bulk handlers, grain millers and the Grains Council of Australia – as well as close consultation with domestic and international customers, and with growers from right across Australia.
The Grains Council of Australia endorsed the concept of AWB Golden Rewards for moisture, after a presentation by AWB last week.