October 13, 2006

 

Australia's AWB active in optional origin global wheat market

 

 

Rumors circulating in global grain markets of Australian agribusiness AWB Ltd sourcing non-Australian wheat and other grains could well be true.

 

The company, which operates a wheat export monopoly from Australia, has an international global trading business based in Geneva, which last fiscal year moved two million tonnes of grain and is still gathering momentum, Peter McBride, a company spokesman, said Friday (Oct 13).

 

He declined to comment directly on market rumors of AWB activity, but confirmed the company sells grains from non-Australian origins into international markets.

 

McBride said managers of the company's collective export wheat sales pool have a final say about overseas trading activity by AWB.

 

That is because AWB does not want its international trading activity to displace or compete with possible Australian sales from the export pool, he said.

 

"The pool has the right of veto over any trade regarding our international offices because we must maximise returns to the national pool," he said.

 

McBride also noted that some international tenders specify certain types of wheat from a particular country, such as cheaper wheat from the Black Sea, which would not affect sales from the Australian export pool anyway.

 

"If there's possible trading that can occur that does not affect the national pool, then that's what we're in business for," he said.

 

AWB also opened an office in India's capital New Delhi early in 2005, but this is more focused on domestic operations, plus assisting exports from Australia, he said.

 

As well, AWB has opened a trading office in Sao Paulo, the capital of global agricultural juggernaut Brazil.

 

"To have an operation there is prudent and over time will prove successful," he said.