September 15, 2006

 

Wheat Australia eyes more trade in new Iraqi tender

 

 

Australian Agriculture Minster Peter McGauran said Thursday (Sep 14) that he hopes Wheat Australia Ltd can win a new contract to supply more wheat to Iraq in a fresh import tender being conducted by the Iraqi Grain Board.

 

"I'm hopeful of a successful commercial outcome for Australian wheat growers," McGauran told parliament.

 

The minister said he has been assured by AWB Ltd that it will make more wheat available from export sales pool to Wheat Australia on commercial terms for the tender.

 

Given the suspension of AWB from the trade with Iraq, this will ensure an ongoing presence for Australian wheat in this long-standing market, he said.

 

Wheat Australia was formed to continue the trade with Iraq, after Iraq suspended commercial dealings in February with AWB until after an inquiry reports into the legality of US$221.7 million in kickbacks paid to Saddam Hussein's regime to secure wheat sales under a UN oil-for-food programme.

 

The inquiry has already overshot two deadlines and now is scheduled to report by Sep 29.

 

Rhys Ainsworth, a spokesman for Wheat Australia, said the company is in ongoing discussions with the Iraqi Grains Board "regarding future opportunities for Australian wheat".

 

Delivery of a previous 350,000-tonne contract between the company and the board is being finalised now, Ainsworth said in a brief interview.

 

Details of this contract were finalised late May and the first cargo left Australia in July.

 

Ainsworth said two cargoes of this contract now have been discharged, three are waiting to be unloaded and the final two cargoes are on vessels steaming toward the Iraqi port of Umm Qasr, he said.

 

Wheat Australia's three partners are unlisted Cooperative Bulk Handling Ltd, ABB Grain Ltd and GrainCorp Ltd.