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 ABB exports first bulk wheat post deregulation 

ABB exports first bulk wheat post deregulation

18 Oct, 2008 01:00 AM
ABB Grain has this week marked the historic loading of its first bulk wheat export shipment from Australia in the deregulated wheat export market.

The Ma Cho, a Hong Kong registered ship, began loading on Wednesday at Port Adelaide.

Around 16,000 tonnes of APW wheat will be loaded on the Ma Cho destined for Papua New Guinea.

A second bulk wheat export vessel is expected on the 19th and it will also load 16,000t destined for New Zealand for the same customer.

"This week's loading of wheat is the first in a new era in grain marketing for ABB Grain," ABB's general manager – marketing Peter Jones said.

"This is just the start of ABB's dedicated and on-going wheat export program that will be supported by our national accumulation efforts incorporating a suite of products such as our wheat pool, cash and contract offerings.

"This supports what we've consistently said about building on niche markets we have developed in recent years.

"These customers have been wanting bulk wheat offers from ABB and deregulation has allowed us to fulfill the customers needs.

"We have also been heartened by the willingness of new customers to buy wheat from ABB."

ABB says it has lined up several shipments of wheat in the coming months, which will be accelerated once new season wheat becomes available from the current Australian harvest.

"We have purposely devoted much of the past year to listening to our customers and assuring them that we can provide the quality and quantity of wheat that they require, when they require it," Mr Jones said.

"To that end we have a solid export program on the books for the new crop and this should give Australian growers comfort that we can connect them to the international market."

Meanwhile, ABB has issued its third distribution payments of the wheat cash flow pool totalling $800,000.

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The Retailers Association have indicated that grocery prices will rise by as much as 30% prior to the Christmas retailing period - a frightening reminder of the current state of the economy and the instability in the money market and Aussie dollar. The housing market has a large "correction" in prices coming soon which indicates that the bail-out package will do little more than fuel the current level of inflation and risk longterm stability. With commodity prices subject to such volatility is it any wonder that people continue to argue for an orderly marketting system to manage wheat exports from this country, orderly payment, less risk on the balance sheet for Australian farmers.
Posted by Angela Martin, 20/10/2008 4:03:38 PM

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