AWB Opposes CBH Export Application

SYDNEY - Jan 7/06 - SNS -- Australia's wheat marketing board, AWB International (AWB), continues to oppose all efforts to allow other companies export that country's wheat, again telling the country's Wheat Export Authority that it does not support the approval of three new bulk wheat export permit applications.

Submitted by Co-operative Bulk Handling (CBH), the applications cover 100,000 metric tons (MT) of Australian wheat for shipment to Vietnam, Malaysia and Indonesia.

"The objective of export permits under the Wheat Marketing Act is to complement the National Pool system, while allowing the development of other markets to the benefit of growers," argues AWB International's Acting General Manager David Johnson.

"The re-submitted applications do not complement the objectives of AWB in maximizing net pool returns, but in effect compete directly with the National Pool to the detriment of the majority of Western Australia growers. Further, the applications are not only for existing AWB pool markets, but for an existing AWB pool customer."

"AWB sold approximately 3.7 million MT - worth over $A800 million – to these existing and established markets in the 2004-05 Pool, accounting for more than 20% of the Pool. Similarly, AWB has a major sales program committed to Indonesia, Vietnam and Malaysia again in 2006."

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