Australia: ABB Grain announce on 28 September 2004 that on 29 September it would provide an advance of A$14/t (gross) to growers who delivered grain into the 2003/04 malting barley pool. The advance applies only to the Standard and Traditional Pool payment options, and it does not apply to the feed barley pool.

ABB managing director Michael Iwaniw said that the provision of a further advance to growers who delivered malting barley to the 2003/04 barley pool reflected the strength of the malting barley market against the low prices currently on offer in the feed barley market. “Growers may recall that in July this year it was announced that a decision had been made not to pay the normally scheduled August advance to growers as a result of market uncertainty and the storage and handling and interest liabilities of ABB,” Mr Iwaniw said.

“We were concerned at the time that, although the malting barley pools were quite strong, the significant decrease in feed barley prices would flow onto malting barley prices and bring down the prices achieveable. “This has not happened, and with continued sales of malting barley at steady prices the ABB board has made the decision to now provide growers in the malting barley pool with a further advance.

“Unfortunately, with feed barley prices still at low levels after the feed barley market’s sharp fall in June/July, we will not be able to extend this advance to the feed barley pool.”

Deductions to be made from the advance are GRDC and NRS levies and VFF levies where applicable. Also to be deducted is the balance of the bulk handling charges (South Australia: $6/t, Victoria: $8/t).

For growers who delivered to the Standard Pool payment option, the advance will increase the amount that was lent to growers at harvest time and through the Top-Up provided in April. The Standard Pool advance is optional and growers can return the advance if they do not wish to keep it.

Those who delivered to the Traditional Pool payment option will receive the advance as a cash payment to the amount that they were provided at harvest and in the April Top-Up.

29 September, 2004