October 24, 2006

Australia's CBH to challenge AWB's dominance

Western Australia's largest grain bulk handler, CBH has announced plans to launch a wheat export pool of its own this harvest, throwing down the gauntlet at AWB who had so far had a monopoly over Australian wheat exports.

The company has launched an application for an export licence to test the power of veto that AWB has over its single desk licence.

CBH is launching a wheat pool for 2 million tonnes for West Australian grain growers.

CBH's present attempt is its second, following an unsuccessful run last December.

CBH chief executive Imre Mencshelyi says growers would have this opportunity to deliver and they would vote by their actions.

Mencshelyi added the new move would not undermine the single desk and would bring more money for growers this season.

AWB's Ian Donges disputed the claim, saying that the export application is an attack on the single desk, and would not necessarily result in growers being paid a higher price. 

Meanwhile AWB has upped its new season pool returns for premium wheat, with National Pool manager David Johnson saying AWB was able to offer higher returns through cost cutting measures and successful futures trading.