supply chain - AWB Limited

Matthew HolgateState Grain Manager, Victoria (left)As the manager of Australia’s Single Desk wheatmarketing system, AWB places great importance oncommunicating and consulting with growers to improvetheir AWB National Pool returns.During the life of the 2003–04 AWB National Pool,several hundred wheat growers from around Australiatoured AWB’s head office in Melbourne to see firsthandhow the marketing of the Australian wheat cropis carried out on their behalf.AWB has a strong on-the-ground presence in ruraland regional areas, with an extensive network ofspecialist grain marketers located across the wheatbelt.Some 375 grower meetings were held during the2003-04 Pool life where key production and marketinginformation was presented and discussed.GOLDEN REWARDSGolden Rewards, the most sophisticated paymentsystem for wheat producers anywhere in the world,continues to play a pivotal role in AWB’s interaction withgrowers by improving wheat quality and Pool returns.Golden Rewards is designed to provide accurate marketsignals to Australia’s grain growers through a paymentsystem that rewards growers for delivering the types ofwheat that international customers demand. Thisinnovative system eliminates ‘cliff-face’ pricing so thereare no severe penalties for growers if their wheat narrowlymisses the mark on one of the designated qualityattributes.When the AWB National Pool first introduced thispayment system in 2000, Golden Rewards incorporatedpayment scales for protein and screenings levels. In2002, it evolved to include payment scales for moisture,in recognition of the fact that dryness in wheat is anattribute valued by processors. Now, growers arerewarded every time they improve the value of the cropby increasing protein levels or reducing screenings andmoisture.The value of Golden Rewards for wheat growers isdemonstrated by the average payment for APW in the2003–04 AWB National Pool. While the APW pay-gradewas finalised at $233.06 per tonne, on average, growersdelivering to this grade received an additional $8.97 pertonne in Golden Rewards quality payments.By specific major pay-grade, the average GoldenRewards premiums were:APH – $12.97 per tonneAHAPWASW– $6.06 per tonne– $8.97 per tonne– $6.85 per tonneASWN – $7.04 per tonneAPDR– $13.04 per tonneAWB regularly reviews Golden Rewards to improvemarket signals to growers and thereby the overall qualityof the Australian crop.In mid-October 2004, AWB announced the next evolutionof the Golden Rewards system. From the 2005-06harvest, under a system known as ‘Premium ChoiceVarieties’, growers will be paid premiums over theEstimated Pool Return for particular varieties that improvethe overall quality of the Australian crop profile.GRAIN MARKETING NETWORKAWB understands a regional presence with specialistgrain marketing staff located throughout the Australianwheat-belt, is critical to its relationship with growers.A strong on-the-ground presence in rural and regionalAustralia allows AWB to listen to growers about theirneeds, as well as provide them with the most up-to-datemarket information and the latest product and serviceadvice relating to the AWB National Pool.During the life of the 2003-04 Pool, as part of theintegration of AWB Limited and the 400-plus Landmarkoffices, AWB strengthened its Grain Marketing division.There are now 50 Grain Marketers located in Landmarkbranches in grain growing areas across the country.Collectively, these AWB Grain Marketers conducted 375grower meetings during the life of the 2003-04 AWBNational Pool, providing key information such as marketsignals, receival standards, AWB wheat marketingoptions and how the AWB National Pool works, alongwith local liaison for initiatives such as grower silocommittees.The major AWB National Pool grower meetings for theyear were the four AWB National Pool Forums held atEsperance and Morawa in Western Australia, Cummins inSouth Australia and Wagga Wagga in New South Wales.More than 700 growers attended the Pool Forums.23