Applications not in the financial interests of National Pool participants
AWB International (AWBI) has advised the Wheat Export Authority (WEA) it will reject 12 bulk wheat export applications totalling in excess of three million tonnes for eight international markets 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 by several companies are for existing National Pool customers, the majority of these customers having been established and serviced by AWB for over 50 years.
“AWBI has advised the WEA 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.
AWBI directors’ Constitutional and legislative responsibilities are to maximise the net pool return to growers who sell wheat into the pools run by AWBI by securing, developing, and maintaining markets for wheat and by minimising costs as far as practicable.
“In some cases, the bulk export permits were to countries where AWB has exclusive sales contract arrangements which maximise net returns to wheat growers over the long term and approving these permits would be of no benefit to National Pool participants,” Mr Donges said.
“The rejected applications tonnage are approximately 75% of the projected National Pool receivals this year and would have a detrimental affect on AWB’s current and future export marketing programs,” Mr Donges said.
Subject to actual deliveries into the 2006/2007 National Pool, AWBI expects to complete sales contracts to core long standing customers from a range of countries including; Japan, Korea, Indonesia, Malaysia, Sudan, Thailand and Yemen.
“AWB International will continue to manage wheat delivered into the National Pool to ensure that we maintain our relationships with long term overseas customers as well as meet the needs of Australian farmers during the drought,” Mr Donges said.