E-Malt.com News article: Australia: Greater transparency for barley pools
ABB Grain announced on November 3 that the three-pronged strategy developed by SAFF and ABB in August this year to enhance the transparency of the operation of ABB Grain Export’s single desk for barley exports from South Australia is coming to fruition. The first prong of this strategy is the provision of pool access by traders.
Trader access via deliveries direct to the legislated barley pool is conditional on a set of rules which are available on the ABB website (www.abb.com.au). Amongst the conditions are:
• Access is to ABB’s legislated barley pools only, and deliveries may be made to SA silos only. No third party access to ABB pools will be given outside SA unless by separate negotiation.
• Traders must register interest in access to pools by 18 November for the coming season.
• Tonnage contracted is restricted to 5,000 tonnes per day by any trader and its associates, and access to the pool is via contract only (no direct delivery).
• Parties may negotiate with the pool at any time for a cash sale to the pool.
• Washouts will apply and swaps may be negotiated.
• Trader access applies only while the single desk legislation exists in its current form.
As is custom practise, ABB’s pools can be opened and closed at any time and without notice at our discretion, in order to suit comercial considerations and protect those that have already delivered to the pool. Pool updates are currently provided on a fortnightly basis.
Pool performance reports are the second prong of the strategy. The inaugural report, detailing the activities of the 2003/04 SA barley pool, will be released next week and will be available to download from ABB’s website or can be obtained by calling the Grain Marketing Help Line (1800 018 205).
The third-prong of the strategy, an independent audit of the activities of the single desk, is scheduled to commence in December, with a tender process currently being undertaken to select the independent auditor.
Quarterly transaction audits will be performed and at the completion of each audit a statement will be placed on the ABB website summarising the results. A complete financial audit will occur at the conclusion of each pool and the results detailed in the pool performance report.
A transparency committee has been established comprising three ABB Grain Export Ltd directors and three SAFF Grains Council members. This committee will oversee the audit process.
04 November, 2005