Australia: ABB announces adjustment to grower indicator rate

Following the Reserve Bank’s announcement on August 8 of a 0.25% increase in the official cash rate, ABB Grain has raised its grower indicator rate from 8.30% to 8.55% effective from August 9, according to ABB’s press release, August 13.

ABB maintains its grower indicator rate is competitive when compared to other lending sources because growers are not required to establish any costly security arrangements when borrowing from the company.

ABB Grain is a leading Australian agribusiness with a multi-faceted operation and international focus. The company’s diverse range of services spread across the entire supply chain, including accumulation, storage, malt, processing, logistics, fertiliser, financial services, wool, marketing, ship chartering and trading. ABB Grain’s operations in New Zealand, located in Auckland and Christchurch, are focused on the trading and distribution of grains, proteins and feed ingredients. ABB also has an office in New Zealand. The company’s network of 111 country silos extends throughout South Australia and also includes two sites in Victoria, and seven export shipping terminals with a capacity of more than 10 million tonnes. In addition ABB jointly owns Australian Bulk Alliance (ABA), a grain storage and handling company based in the eastern states, with Japanese trading company Sumitomo. The ABA network covers seven grain storage sites in Victoria and New South Wales, and 50% ownership of the Port of Melbourne grain terminal. ABB Grain’s malting division, Joe White Maltings, is one of the world’s largest producers of malt with the capacity to produce 500,000 tonnes per annum. The eight malting plants strategically positioned across Australia include the largest malthouse in the southern hemisphere, situated in Perth (WA).

15 August, 2007