| ||Media Release: AWB barley pool excites interest|| ||
AWB has increased its estimated pool returns (EPRs) for barley after the launch of its 2009/10 season barley pool last week in response to overwhelming interest from buyers.
All grades have increased by $3 a tonne, taking the EPR for feed 1 barley to $169 a tonne and Baudin/Gairdner malt to $214 a tonne (FOB, excl GST).
AWB General Manager Commodities Mitch Morison said the reaction to AWB running barley pools had been very positive, with growers seeing AWB as offering new competition and buyers seeing the company as secure source of supply.
“Barley pricing has been a challenge for growers this past year, so the calls coming in since our announcement have been welcoming AWB’s increased activity for this grain and talking about how we can add value,” Mr Morison said.
“The barley harvest is in full swing in many regions at present, with growers debating where best to place their barley, to hold or to sell, timing and so on.
“A pool option is attractive because it can provide cash flow up front and offers upside potential over the longer term, in the event the market improves.
“Next week we are offering an early commitment premium of $5 a tonne for growers who contract into the pool in the period November 16-20.
“Many growers are warehousing during harvest, so our contract is essentially offering growers a premium to make that early sales decision – they get the benefit of that premium and we work to create value for the pool with that tonnage, so it’s a sound strategy for us,” Mr Morison said
AWB has declared the revised EPRs to also be 2009 season Nominated Estimated Pool Returns (NEPRs) for the barley pools, for those growers who will utilise AWB’s Pool Payment and Finance Options.
AWB is encouraging growers to contact an AWB grain marketer or the AWB Grower Services Centre this week to find out full terms, conditions and detail of payment and finance options before committing barley to the pool.
AWB’s barley pool will accept F1 & F2 barley in WA & SA, as well as Baudin, Gairdner, Buloke and Vlamingh malt varieties in WA.
New EPRs: F1 $169/t, F2 $159/t, BA1 $214/t, GA1 $214/t, BU1 $204/t, VL1 $199/t (EPRs are FOB, excl GST).
Media Inquiries: Ian Desborough 03 9209 2335 or 0418 853 881
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