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AWB International (AWBI) has advised the Wheat Export Authority (WEA) it will reject CBH bulk wheat export applications totaling over two million tonnes of wheat for export to Indonesia, Malaysia and Vietnam to protect the financial entitlements of wheat growers who are delivering to the 2006/2007 National Pool.
The Chairman of AWBI, Mr Ian Donges, said the bulk export permits were for existing National Pool markets, the majority of which AWB has established and serviced for over 50 years.
“AWB exports on average approximately four million tonnes of wheat per annum to Indonesia, Malaysia and Vietnam,” Mr Donges said.
“AWBI considers that the bulk export permits would not be consistent with the intentions of the Wheat Marketing Act or the AWB Constitution to maximise net returns to wheat growers participating in the National Pool,” Mr Donges said.
The purpose of the Wheat Marketing Act regarding bulk wheat export applications is to complement AWBI’s management of the Single Desk marketing arrangements through the National Pool. The objective is not to create competition with the National Pool that would undermine National Pool returns.
“AWBI is legally obliged to maximise wheat growers’ returns by securing, maintaining and developing markets. Therefore AWBI could not waive its veto on these applications if it is to protect the interests of National Pool growers” said Mr Donges.