| ||Maximising returns for high screenings wheat|| ||
AWB has responded quickly to the needs of farmers experiencing a difficult harvest due to the drought.
The AWB National Pool has introduced new segregations in Western Australian to separate and add value to high screenings (small grained) wheat, which is expected to be available in significant quantities this harvest due to the dry season.
AWB Acting National Pool Manager David Johnson said the Australian Utility Hard (AUH3) and Australian Utility Wheat (AUW) segregations had been introduced at a number of receival silos across Western Australia, to receive Hard and APW varieties with screenings to a maximum of 15% for AUH and 25% for AUW. Standard milling grades have a screenings maximum of 10%.
Farmers with APW and AH grades with screenings below 10% will still be paid under the Golden Rewards APW and AH Pay Grades as long as there is a binning line for these grades at their site.
“The increased screenings limit will capture the value of the protein and other quality attributes that are available in high screenings wheat, which can be lost if the product is sold as feed,” Mr Johnson said.
“As the farmers’ receiver of last resort, with the obligation to maximise returns to pool participants, AWB is the only buyer of Australian grain committed to taking lower quality specification wheat and extracting the highest possible value for it,” said Mr Johnson.
As receiver of last resort AWB is required to receive and market every tonne of Australian wheat produced, regardless of the crop size and quality. No other Australian grain buyer has this obligation.
The AUH pool estimate for 2006/07 is $248/t FOB. The AUW pool estimate is $230/t FOB.