June 6, 2008

Australia's ABB to increase container wheat exports by 25 percent


ABB Grain Ltd. expressed plans to boost its shipments of wheat in containers by 25 percent this year, to take advantage of the de-regulation of wheat exports.

As of last year, the Australian government made exports of wheat in containers and bags exempt from a monopoly operated by the former Australian Wheat Board AWB Ltd.

AWB will lose its monopoly export license on July 1 this year, when the government fully de-regulates the wheat export trade.

ABB said that in the past six months, the company had exported around 19,000 containers of grain to wheat buyers. A container of wheat holds 22 tonnes.

De-regulation of wheat exports in containers and bags last year had produced a huge rise in demand, the group said.

ABB raised AUD190 million (US$181 million) on Wednesday through a share placement, partly to build a new container packing facility in outer Sydney and a new malt house.