AWB gets nod to export bulk wheat
By Catherine Clifford
Thursday, 11/09/2008
Wheat Exports Australia has today announced it has accredited two subsidiaries of AWB for bulk wheat exports under the Wheat Export Marketing Act 2008.
AWB (Australia) Limited and AWB Harvest Finance have been granted permits, but with tough conditions attached in relation to the chartering of vessels and hedging finance activities.
While the WEA has not imposed any tonnage restrictions on AWB, it has demanded AWB's hedging focus on the protection of pool members, be operated transparently and be managed in line with Australian financial industry standards.
Wheat Exports Australia has also warned AWB Harvest Finance it could call for an external audit of the subsidiary at anytime.
On the chartering front, the WEA says AWB cannot use ships that are older than 15 years, and AWB's demurrage rates must be benchmarked against market rates.
Acting chief executive officer of Wheat Exports Australia, Peter Woods, says the announcement brings to 13 the number of companies in Australia now accredited to ship bulk wheat to overseas customers.
"WEA has other bulk wheat export applications under consideration and is still receiving applications," he says.
"Applications generally come in between 300 and 1,500 pages and we ask for risk management documents and they can be a couple of hundred pages also," says Mr Woods.
AWB has accepted the conditions attached to its bulk permit.
Managing Director Gordon Davis says AWB is moving into a new era of corporate governance anyway, and Wheat Export Australia's restrictions pose no problems.
"One of the objectives we've had since I started here in 2006 is to increase the transparency and trust in the organisation, so we don't see that as a burden because it's in line with what we do anyway," he says.
And Mr Davis would not rule out Iraq as a possible customer for AWB now that its bulk export approval has been finalised.
"We don't rule out exporting to any country and I don't think any exporter from Australia would," he says.
"We're just very pleased that we're confirmed we're now in the game and we'll get on with having discussions with all our customers about what we might do this year," says Mr Davis.
By Catherine Clifford
Thursday, 11/09/2008
Wheat Exports Australia has today announced it has accredited two subsidiaries of AWB for bulk wheat exports under the Wheat Export Marketing Act 2008.
AWB (Australia) Limited and AWB Harvest Finance have been granted permits, but with tough conditions attached in relation to the chartering of vessels and hedging finance activities.
While the WEA has not imposed any tonnage restrictions on AWB, it has demanded AWB's hedging focus on the protection of pool members, be operated transparently and be managed in line with Australian financial industry standards.
Wheat Exports Australia has also warned AWB Harvest Finance it could call for an external audit of the subsidiary at anytime.
On the chartering front, the WEA says AWB cannot use ships that are older than 15 years, and AWB's demurrage rates must be benchmarked against market rates.
Acting chief executive officer of Wheat Exports Australia, Peter Woods, says the announcement brings to 13 the number of companies in Australia now accredited to ship bulk wheat to overseas customers.
"WEA has other bulk wheat export applications under consideration and is still receiving applications," he says.
"Applications generally come in between 300 and 1,500 pages and we ask for risk management documents and they can be a couple of hundred pages also," says Mr Woods.
AWB has accepted the conditions attached to its bulk permit.
Managing Director Gordon Davis says AWB is moving into a new era of corporate governance anyway, and Wheat Export Australia's restrictions pose no problems.
"One of the objectives we've had since I started here in 2006 is to increase the transparency and trust in the organisation, so we don't see that as a burden because it's in line with what we do anyway," he says.
And Mr Davis would not rule out Iraq as a possible customer for AWB now that its bulk export approval has been finalised.
"We don't rule out exporting to any country and I don't think any exporter from Australia would," he says.
"We're just very pleased that we're confirmed we're now in the game and we'll get on with having discussions with all our customers about what we might do this year," says Mr Davis.