E-Malt.com News article: 3676

Australia: ABB Grain Ltd announced on November 15 that this season it is offering a larger range of marketing products than ever before, reflecting the company’s growth since merging with AusBulk Ltd and United Grower Holdings Ltd in September 2004. According to ABB’s national accumulation manager Andrew Hannon, one noticeable change has been ABB’s range of marketing options for wheat. “Growers now have the option of three ABB wheat pools to deliver into this harvest, modelled on those previously offered by AusBulk,” Mr Hannon said.

ABB also has a range of feed barley pool options available to growers for 2004/05, as has been the case in previous years. The current gross pool indicator for ABB’s 2004/05 feed barley pool in New South Wales is $150-160/t, with a harvest advance of $120/t. ABB general manager domestic barley Simon McNair said the pool, aimed purely at the domestic market and influenced by domestic activities, provided NSW growers with an alternative marketing and risk management option for their grain.

“ABB’s NSW pool provides a way for growers to capitalise on the domestic prices on offer over an extended period whereas cash prices, which are reassessed daily, provide a price at one point in time only,” Mr McNair said. “This means that pool returns can capture any lifts in the market as prices achieved over the life of the pool are averaged out, with all pool participants receiving the same gross return amount.” Mr McNair said that domestic market prices had been rising amid concerns of a lack of feed barley supply in southern NSW. “If the market continues to firm the benefits of this will flow through to grower returns.” Mr McNair reminds growers to research their marketing options prior to delivery, to ensure they choose the option best suited to them.

“When delivering to ABB’s pools, growers have the choice of three different payment options which they will be asked to choose from when delivering to a silo,” Mr McNair said. “The Traditional Pool payment option offers minimal paperwork and three straight payments with no loan and no interest. “The Standard Pool payment option provides a transparent finance option for growers and allows growers to choose whether they take scheduled further advances after the initial harvest advance is paid to growers.

“The Extended Pool payment option allows growers to receive the majority of payment in the following financial year after harvest. A line-of-credit facility is available with the Extended Pool, allowing growers to draw down against their equity in the pool, as a loan which gives growers the ultimate flexibility in how much money they receive and when. “This year the Extended Pool option has an additional feature which allows growers to deliver into the pool, but provides the option of switching across to a cash price until April, regardless of whether or not they have already drawn down funds.” Mr Hannon said that besides wheat and barley, ABB was this season offering various marketing options for a range of other commodities. “Growers are encouraged to call the ABB Grain Marketing Help Line 1800 018 205 for information on any of our marketing options,” he said.


21 November, 2004