Australia: Barley growers to share $23 mil in pool payments

From June 27 growers who delivered malting barley to ABB’s 2005/2006 pools will receive a $35/tonne distribution, ABB announced in a press release, June 22. The payment brings to $213/t payments made to malting pools or $23/t more than the estimated gross return in December 2005.

ABB Grain also will close its 2005/2006 feed barley pools, with a final net payment of $4.09/tonne also being paid on June 27 to growers who supported the pools. The payment will bring total feed barley payments for the No.1 pool to $162.09/t.

Malting 3 grades also will be finalised along with feed as the majority of malting 3 received was unsuitable for malting and therefore was priced close to feed. However, final payments for malting 3 will bring gross returns to $171.82 or $9.73/t higher than the final feed return.

Included in these payments are adjusted bulk handling deductions of $2/t for feed, $3.15/t for malting 3 and $7/t for malting 1.

ABB’s executive manager group marketing, Gary Spiel, said final malting barley payments would be made to growers in September after the 2005/2006 malting pools were finalised in August: “Unlike previous years, they won’t be closed until then because we are still finalising sales of some stock.

“Cessation of the single desk for barley in South Australia also means that it is incumbent on ABB Grain Export to close out all stocks and settle all agreements prior to finalising this pool.”

The gross estimate for the 2005/2006 malting pool is now $223/t, a $2/t reduction from the previous estimate.

“The return has been directly affected by a very strong Australian dollar, high shipping rates and germination issues with malting barley,” Mr Spiel said. “This has been compounded by the continued reluctance by Chinese buyers to use malting barley at current world levels.”

The 2006/2007 malting and feed barley pool estimates remain unchanged at $338/t for the No. 1 malting pool; $246/t for the No.1 feed pool. No.2 pool gross estimates are $333-$338/t for malting and $229/t for feed, while No.3 pools are $258/t (malting) and $171/t (feed).

“Given the relatively small tonnage received in that season, ABB will look to finalise the 2006/2007 pools in August with payment due in September,” Mr Spiel said. “Obviously this will have a positive impact on grower cashflow after an extremely difficult year.”

22 June, 2007