News last update:6 Aug 2012

GrainCorp seeks wheat export permits

GRAINCORP Limited in Australia says today it is hoping for a prompt response from the Federal Government to its application for four permits to export wheat next year.

The total 230,000 tonnes of wheat will be shipped to existing customers in Japan, Europe, Indonesia and Malaysia.

The office of the Australian Agriculture Minister Peter McGauran was unable to confirm whether these were the first export applications since Mr McGauran was given power of veto for wheat exports – an interim measure while the future of AWBI single desk is considered.

It was also unable to say if a quick response to GrainCorp was likely, but hoped to make an announcement "in the coming days".

High quality Australian wheat

If the permits are approved, Grain Corp will be able to offer growers a $15 per tonne premium on the current AWBI national pool estimate.

GrainCorp managing director Tom Keene said the permits provided the opportunity to offer higher net returns to Australian growers and also enabled Australia to continue to supply long standing important international customers.

"A number of our major international customers are seeking to secure high quality Australian wheat for their milling operations," Mr Keene said.

"If we do not supply these markets, then other countries may be able to capture market share, which may later be difficult to regain."

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