| ||Media Release: AWB barley pool offers growers new choice|| ||
AWB is offering new choice to barley growers in Western Australia and South Australia, with the launch of its 2009/10 season barley pool.
The pool is targeting feed barley in both States, with an estimated pool return (EPR) for feed 1 barley of $166 a tonne. AWB is also seeking malting barley in Western Australia, with an EPR for both Baudin and Gairdner malt of $211 a tonne (all EPRs are FOB, excl GST).
AWB General Manager Commodities Mitch Morison said the company was in the fortunate position of being able to offer growers a fresh marketing option at the same time as it has international customers looking for barley.
“This is a targeted pool developed in direct response to the demands we have identified,” Mr Morison said.
“Growers are concerned with current barley values and as an experienced grain exporter we aim to use our strong customer relationships to create value for our barley pool.
“We have loyal customers who want us to supply them with barley as well as wheat. We will primarily target premium North Asian markets and use our significant expertise in managing price, foreign exchange, cargo assembly and ocean freight exposure over the life of the pool.
“Our pool is offering an Early Commitment Premium of $5 a tonne for growers who contract into the pool in the week November 16-20, 2009, because as professional grain asset managers, early commitment allows AWB to capture value for the pool.
“Barley growers are well aware that ample world supply has presented them with a marketing challenge this year, with Saudi Arabian demand setting the benchmark for global feed values.
“Australian malting barley is well placed for a sizeable export program to China, although it faces a similar challenge with competing supplies from the European Union.
“In this environment we are confident that we can add value through a targeted pool and provide the additional marketing choice growers are seeking,” Mr Morison said.
Key pool details:
- The pool will accept F1 & F2 barley in WA & SA, as well as Baudin, Gairdner, Buloke and Vlamingh malt varieties in WA.
- Current EPRs: F1 $166/t, F2 $156/t, BA1 $211/t, GA1 $211/t, BU1 $201/t, VL1 $196/t (EPRs are FOB, excl GST).
- Growers can choose an Advanced Payment option (first payment early Jan) or a distribution option (three distributions).
- To access the AWB barley pool and obtain full terms and conditions, growers should call their local AWB grain marketer or call the AWB Hotline 1800 054 433.
- AWB will continue to offer growers cash prices for barley.
Media Inquiries: Ian Desborough 03 9209 2335 or 0418 853 881
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