Australian wheat growers should immediately deliver their wheat to AWB now the Federal Government has made a decision to limit bulk wheat export permits outside the 2006-07 National Pool.

The Chairman of AWB International, Mr Ian Donges, said the Government’s decision to issue bulk export permits for 800,000 tonnes to Indonesia and Iraq means the bulk of export sales for 2006-2007 harvest will continue to go through the National Pool.

“AWB International will maximise net returns for wheat growers who participate in the 2006-2007 National Pool by managing export and domestic sales in a sustainable manner,” Mr Donges said.

“We will direct export sales to premium international customers, such as Japan, and critical domestic customers during what is proving to be a prolonged drought in wheat growing areas right across Australia.”

The Chairman of AWB Limited, Mr Brendan Stewart, said a range of initiatives will be considered as part of its 2006-2007 ‘drought Pool’ to minimise any impact on wheat growers.

“AWB Limited recently cut the cost of servicing the National Pool by 40% to $39.5 million,” Mr Stewart said. “However, we will look to offset the impact of limited bulk export permits on the 2006-2007 National Pool through further cost reductions.”

“We will look at what industry services and costs that we can forego in the short term so that we can protect the position of Australian wheat growers in the 2006-2007 ‘drought Pool.”

AWB will update the EPR on a regular basis, starting again in early January, to reflect the temporary arrangements for the 2006-2007 ‘drought pool’ and normal market conditions including movements in international wheat prices.

Media contact: Peter McBride on 0417 662 451

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