June 29, 2007

Australia's ABB wins AUS$1 billion to supply barley to Saudi Arabia

Australia's grains marketer ABB Grain Ltd has won a AUS$1 billion (US$844.45 million) contract over five years to supply barley to Saudi Arabia.

ABB said it had entered into a memorandum of understanding with Saudi Arabia's United Feed Company to supply feed barley.

Saudi Arabia is the world's biggest buyer of feed barley, importing about 7.5 million tonnes a year, with United Feed accounting for most of the grain tonnage.

ABB would supply at least one million tonnes of barley a year, but United Feed could absorb as much as ABB could provide. ABB's shipments had varied from one to two million tonnes previously. ABB has supplied more than eight million tonnes of barley to the company since 1998.

The barley would be bagged and branded with the ABB logo and supplied to Saudi Arabia's Bedouin community.

The agreement provides a solid, long-term support base for Australian barley growers and their grain, ABB chairman Perry Gunner said.

United Feed was also said to be interested in several other commodities of the ABB, such as pulses and wheat.