Australia: ABB Grain announces estimated Silo Returns and cash prices for barley

ABB Grain has posted on November 10 estimated Silo Returns and cash prices for barley at its sites across South Australia based on the best available information. Freight costs are an important component in calculating grain prices at individual sites, and in recent months ABB has been involved in complex rail freight negotiations with the Australian Railroad Group.

Although these negotiations are not finalised, significant progress has been made. Consequently, ABB is now able to provide estimated grain prices at sites throughout SA for barley and peas, with other commodities to follow. Freight rate increases are being experienced across the grain industry throughout Australia. Increases are being driven by major increases in fuel, the privatisation of rail and competition for transport resources from other sectors like mining and interstate freight.

Across the board, the increase of freight rates for barley for 2005/06 is on average around 11.25% at ABB sites. ABB has been concerned to retain the best possible integrated supply chain for grain in SA using a mix of both road and rail, and to find the best solution for grain growers, grain marketers, the storage and handler and broader community. Substantial change to freight movements is likely on Eyre Peninsula where sites west of Wudinna, and at Buckleboo, would have grain trucked to Wudinna and Kimba respectively for movement by rail to Port Lincoln.

The Eyre Peninsula community, the State and Federal governments, local government, the grain industry and ARG have made a combined effort with the aim of ensuring retention of a rail network on the peninsula. Under the changes proposed by ARG, Apamurra (a branch from Murray Bridge) and receival sites north of Roseworthy would no longer be served by rail. Further to a recent column regarding warehouse disclosure reports, ABB will now disclose warehoused barley information to third parties. This decision has been made in consultation with the SAFF Grains Council and is in keeping with recent Single Desk transparency initiatives launched by SAFF and ABB.

Growers who wish to release their warehouse barley information must complete and return an authority form, which is available on the ABB website.

11 November, 2005