October 13, 2008

Australian agribusiness AWB Ltd. (AWB.AU) Monday said it plans to distribute A$571 million to growers who delivered wheat to its collective sale pool from a crop harvested late in 2007.

This third distribution will take total payments to growers to A$1.45 billion after costs for the 4.35 million metric tonnes of wheat delivered to the pool, mostly from growers in Western Australia and South Australia states, the company reported.

David Johnson, general manager of the pools, said sales were made to "long-term loyal customers" in Japan, South Korea, Indonesia, Malaysia, Sudan, Egypt and Pacific markets including New Zealand, Papua New Guinea, New Caledonia, Solomon Islands and Fiji.

"The sales programme is now complete, with only the execution phase, essentially shipping remaining, which continues right through to the new harvest," Johnson said in a statement.

AWB only receives payment from customers when the wheat is shipped, so distributions to growers follow the shipping pattern, he said.

A final distribution to growers is expected in December, he said.

The return from 2007's number 1 pool for benchmark Australian Premium White grade wheat of 10.5 percent protein is estimated at A$420/ tonne, free on board.