Peter Glatz's Premium Offer Story

The central wheat belt of Western Australia is a relatively forgiving farming region but local grower Peter Glatz, like all farmers, remains at the mercy of the global commodity markets. He is working to change this, using AWB Price +, a mix of pool contracts and cash sales to take control of the price he is paid for his product. Peter and his two sons farm 4000 hectares of wheat, barley and canola each year, so at the end of the season they want a good price for their efforts. In 2016 Peter used AWBs Price + Premium Offer contract to enhance his old crop wheat price by $7/tonne, pushing the price higher than the market at the time. He received the price premium in exchange for a firm offer to sell an additional equivalent quantity of grain to AWB in the future at $300/tonne. “The season was looking good and the prices were a lot better than where they are now, I wish I’d taken more out,” he said. “It’s another way of marketing your grain, a way to value-add to the price of the grain.” Peter aims to forward sell up to 30% of grain each season. “I’ve always dealt with AWB so when they came up with this product we looked into it. I found the local representative very good to deal with and would take out another contract if things improve.”