Australia: ABB Grain Ltd announced adjustment to grower indicator rate

Following last week’s increase in the Reserve Bank’s official cash rate of 0.25%, key Australian agribusiness ABB Grain Ltd has announced August 07 it will raise its grower indicator rate by the same amount.

The rate will rise from the current 7.8% to 8.05% and apply to all barley pools effective from August 9, 2006.

The widely expected increase in the Reserve Bank’s cash rate, announced on August 2, was in response to a continuing strong economy and intended to contain inflationary pressure.

ABB last adjusted its grower indicator rate on May 12 when it raised the rate by 0.25% in response to a similar rise in the Reserve Bank’s official cash rate.

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

ASX-listed ABB Grain has a market capitalisation in excess of AU$1billion. Established 66 years ago, ABB has offices in all Australian grain growing regions, as well as New Zealand and China.

Today, ABB is one of Australia’s largest grain companies, providing fertiliser, storage, processing, logistic, marketing and trading services to a range of customers along an integrated supply chain.

09 August, 2006