E-Malt.com News article: 2932

Australia: A fall in the international feed barley market has affected ABB Grain’s 2003/04 barley pools and ABB’s pool forecasts for the 2004/05 season, Ezigrain posted on July 12. The direct result for growers is that the ABB will not issue its August advance on feed or malting barleys delivered to in traditional standard pools.

ABB says higher exchange and freight rates, and a change in subsidy policy in Saudi Arabia, are to blame. ABB’s managing director Michael Iwaniw said growers who utilised ABB’s Traditional or Standard Pools for the 2003/04 season received pool advances at harvest and a further top-up in March. However, due to uncertainty in the market, and the storage and handling and interest liabilities of ABB, there will be no August advance provided to growers. “Markets shift for many reasons and some of these reasons we can plan for, however what couldn’t be predicted was the subsidy policy change in Saudi Arabia, which has in turn impacted on the prices achievable in the Saudi market,” Mr Iwaniw said.

“The Saudi government subsidises the import of barley to regulate prices within Saudi Arabia. This subsidy has suddenly been reduced, affecting stocks of barley already within the country and stocks due to be imported by various buyers. “With Saudi Arabia being the world’s largest importer of feed barley, only time will tell exactly how much this will impact on the market. “ABB has been selling barley at every possible opportunity, breaking shipping records in the process. However the volatile nature of the market at the moment has meant we have had to sell barley in a falling market.” High sea freight rates had been another key factor, which ABB had also minimized the impact of through forward freight cover.


13 July, 2004