May 30, 2006

Australia's ABB says it is ready to challenge AWB's monopoly

ABB, an Australian grain handler, announced a record 24 percent rise in net profit of AUS$44.8 million (US$34.1 million) for the six months ending Mar 31 and said it was ready to become a major wheat player should there be changes to wheat exporter AWB's monopoly rights.

ABB's strong performance in storage and handling and marketing contributed strongly to the company's half-year results. The company is better known as a strong barley exporter.

Grain receivals for the 2005-06 season were 6.6 million tonnes, compared with last year's receivals of 4.2 million tonnes, ABB Grain's managing director, Michael Iwaniw, said.

He expects the company's performance would continue to improve through the year, but conceded it would be too early to predict results.

In the half-year, incomes from storage and handling increased by 120 percent from the first half of 2005.

Iwaniw said the company had expanded its presence in NSW and Western Australia and handled between 1.5 million and 1.6 million tonnes of wheat in the first six months of the year.

Iwaniw said the company was increasing its volumes of non-barley products to offer growers greater marketing options and flexibility.

The growth in ProGrain, its grain cleaning and containerisation arm, and its fertiliser business had also contributed to the results.