AWB National Pool today announced its fifth distribution payment from the 2001 season, with more than $1.2 billion to be paid to wheat growers across Australia this week.

General Manager AWB National Pool Sarah Scales said the distribution takes total payments to growers from the 2001 pool to more than $4 billion, and reflected outstanding pool performance with very large tonnages in an highly price competitive world market environment.

"AWB’s active currency, futures and position management, combined with our solid marketing progress, is keeping growers on track for healthy returns from the 2001 season," Ms Scales said.

"The distribution is based on sales receipts and the result shows that our active management is protecting and enhancing pool returns in a market environment characterised by discounting and high volatility.  

"AWB has extended the life of this pool in order to better manage equity risks and maximise its value. This has allowed us to realise approximately $300 million more for pool participants than if we had quit stocks at the heavily discounted prices that prevailed during 2002.

"Added to the mix of market volatility now is a level of uncertainty as a result of the current situation in Iraq. The Iraq conflict presents execution risks for AWB National Pool that will require careful management.

"As a result of these challenges, we are reviewing the timing of subsequent pool distributions.

"We are constantly monitoring the market environment, and will keep growers well informed of any impact this might have on pool decisions as soon as they are clear," Ms Scales said.

The fifth distribution for benchmark APW is $56.01 per tonne (FOB, GST Exclusive), taking the total amount distributed for that pay grade (at 10% protein, 5% screenings) to $228.49/t - approximately 89% of the current Estimated Pool Return.

With the fifth distribution AWB has now paid 100% of the Estimated Pool Return for the feed and durum wheat grades. For all grades, 100% of estimated storage and handling costs have now been deducted.

Fifth distribution – 2001 National Pool

($/t, FOB, GST exclusive)

NB: 100% of AWB Golden Rewards active payment scales for protein and screenings will apply to the pay grades indicated to be 100% paid to date in this fifth distribution. 88% of AWB Golden Rewards active payment scales for protein and screenings will apply to all other pay grades in this fifth distribution.

* Estimated Pool Return Base Rate pay grades @ 31 March 2003

Average port, storage and handlings deductions

($/t, FOB, GST exclusive)

The following percentage of freight costs will also be deducted