Dear Charlie,
Thought you and Lee would like to see Malcolm's 'Callum Downs' July 8/08 run down on the terms of 'marketing choice' down under!
AWB Wheat Marketing 2008/09 Season Yesterday I
was briefed by Gordon Davis, Mitch Morison and Ian
Desborough on a number of issues, including their plans for
wheat marketing for the first year of deregulation.
Here are some points from those talks
• AWB have previously announced that they will be
operating pools, buying for cash, and becoming an
accredited exporter. That does not change.
• AWB will be using their large, existing customer base,
to make timely sales of Australian wheat with the
objective of maximising returns to pool participants.
• They want to capture the main features of their old
national pooling system, to leverage off that, and to
provide growers with a secure pooling alternative that is
low risk, and delivers high, equitable returns to pool
participants.
• They are going to run two pools - an Eastern pool
covering SA, Vic, NSW and Qld, and a Western pool
for WA.
• The split is on the basis of qualities and segregations,
market destinations, differential shipping costs,
domestic market issues etc. They could have put EP
with the western pool, but chose not to.
• There will be differentials between ports based on port
costs (efficiency), and shipping costs.
• AWB will continue to accept pool deliveries from non
growers if it will assist in maximising pool returns.
• AWB will reserve the right to close a pool at any time
to preserve the equity of those who have already
committed to their pool.
• The pools will be run under a trust structure to
quarantine the pools completely from the operations of
the pool manager, AWB Ltd.
• AWB will continue with their range of Harvest Finance
products.
• Growers will be able to contract into AWB’s pool
between mid August and the end of September (or until
AWB have secured their target tonnage). There will be
a $10/t premium for pre commitment.
• While the multivariety aspect of Golden Rewards will
not be offered, AWB will be paying increments for
protein, screenings and moisture.
For growers who wanted to retain a National Pool, the
AWB offering will basically provide that product, in much
the same way as the old single desk system. For many
growers, nothing needs to change, if that is what they want.
Callum Downs Commodity News Grain Report is published by Callum Downs Commodity News Pty Ltd A.C.N. 069 965 135, trustee for the MK & MA Bartholomaeus Trust, trading as
Callum Downs, PO Box 54, Clare, Sth Aust 5453. Telephone (08) 83 666 583, Fax (08) 83 666 528, Email callum@capri.net.au. Callum Downs Commodity News Grain Report is
published weekly from February to October, and daily from November to mid January. Copyright Callum Downs 1995.
An Eastern and a Western wheat Pool!
What a novel Idea~!
Thought you and Lee would like to see Malcolm's 'Callum Downs' July 8/08 run down on the terms of 'marketing choice' down under!
AWB Wheat Marketing 2008/09 Season Yesterday I
was briefed by Gordon Davis, Mitch Morison and Ian
Desborough on a number of issues, including their plans for
wheat marketing for the first year of deregulation.
Here are some points from those talks
• AWB have previously announced that they will be
operating pools, buying for cash, and becoming an
accredited exporter. That does not change.
• AWB will be using their large, existing customer base,
to make timely sales of Australian wheat with the
objective of maximising returns to pool participants.
• They want to capture the main features of their old
national pooling system, to leverage off that, and to
provide growers with a secure pooling alternative that is
low risk, and delivers high, equitable returns to pool
participants.
• They are going to run two pools - an Eastern pool
covering SA, Vic, NSW and Qld, and a Western pool
for WA.
• The split is on the basis of qualities and segregations,
market destinations, differential shipping costs,
domestic market issues etc. They could have put EP
with the western pool, but chose not to.
• There will be differentials between ports based on port
costs (efficiency), and shipping costs.
• AWB will continue to accept pool deliveries from non
growers if it will assist in maximising pool returns.
• AWB will reserve the right to close a pool at any time
to preserve the equity of those who have already
committed to their pool.
• The pools will be run under a trust structure to
quarantine the pools completely from the operations of
the pool manager, AWB Ltd.
• AWB will continue with their range of Harvest Finance
products.
• Growers will be able to contract into AWB’s pool
between mid August and the end of September (or until
AWB have secured their target tonnage). There will be
a $10/t premium for pre commitment.
• While the multivariety aspect of Golden Rewards will
not be offered, AWB will be paying increments for
protein, screenings and moisture.
For growers who wanted to retain a National Pool, the
AWB offering will basically provide that product, in much
the same way as the old single desk system. For many
growers, nothing needs to change, if that is what they want.
Callum Downs Commodity News Grain Report is published by Callum Downs Commodity News Pty Ltd A.C.N. 069 965 135, trustee for the MK & MA Bartholomaeus Trust, trading as
Callum Downs, PO Box 54, Clare, Sth Aust 5453. Telephone (08) 83 666 583, Fax (08) 83 666 528, Email callum@capri.net.au. Callum Downs Commodity News Grain Report is
published weekly from February to October, and daily from November to mid January. Copyright Callum Downs 1995.
An Eastern and a Western wheat Pool!
What a novel Idea~!
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