TAKE FULL ADVANTAGE.

TAKE FULL ADVANTAGE ....
OF FORWARD THINKING
AWB 2013/14 Harvest
Wheat Pools
• Participate in pre and post
harvest marketing windows
• Access $80 per tonne
Production Advance
• Flexible range of payment
options
• Golden Rewards
• Guaranteed distribution dates
• Finalise December 2014
Call 1800 4 GRAIN (1800 447 246) or go to www.awb.com.au
“
PLAN YOUR OWN GRAIN PORTFOLIO
The volatility of grain prices has increased since deregulation, so it
makes sense to use several grain marketing products every season.
Like any investment portfolio, a diversified grain marketing program
gives you chances to capture better returns if some products do
exceptionally well and leaves you less exposed if a comparatively
risky product fail.
You can build with confidence a grain marketing portfolio around the
well-managed AWB Wheat Pools.
AWB Pools operate at all pricing points throughout the supply
chain, from domestic customers to container sales and bulk export
shipments. We strive to deliver the highest return to our pools by
seeking the highest paying opportunities in the market.
Josh Martin
Trading and Risk Management Manager, Cargill Australia
Our Pool Management team is committed
to business partnering with farmers by
giving you the full advantage of AWB and
Cargill knowledge and expertise to deliver
strong and consistent Pool performance and
build innovative enhancements to the Pool
portfolio of products.
From Left: Richard Williams Product Line Manager (Pools), Peter Sarcevic
AWB Harvest Finance Manager, Bobbie Cottrell Portfolio Manager (Trading)
Call 1800 4 GRAIN (1800 447 246) or go to awb.com.au
AWB 2013/14 WHEAT HARVEST POOL
KEY FEATURES
The AWB Harvest Wheat Pool is well placed to take advantage of potential pre and
post-harvest pricing opportunities by leveraging Cargill’s global information base to your
advantage.
Grades
All standard grades*
AWB HARVEST POOL OBJECTIVE
The objective of the 2013/14 Pool is to deliver superior returns for your wheat across the
season, using structured trading and hedging processes and limits to protect the Pool EPR
from the downward price movements, while allowing for upside price participation in the
post-harvest marketing window.
Minimum Contract Size
100mt
Contract Tolerance
+/- 10%
AWB POOL MANAGEMENT
AWB has implemented a number of policies and procedures to ensure it is able to achieve
its commitment to conducting its Pools in a way that promotes fairness, transparency and
accountability. This includes adhering to Cargill’s Guiding Principles and having each pool
independently audited prior to finalisation of the pool.
Pool Finalisation
December 2014
Payment Methods
• AWB Harvest Loan
• AWB Flexible Loan
• Advanced Payment
• Distribution
• Deferred Distribution
EXTENDING THE VALUE AND CONVENIENCE
We are committed to delivering strong and consistent pool performance, while building
further enhancements to the pool portfolio of products – as we have already done through
AWB Production Advance and the new AWB Season Starter Plan and Pool.
Quality
Applicable grades: AWB Golden
Rewards apply*
RESPONDING TO GROWER FEEDBACK
The AWB Harvest Wheat Pool will now finalise in December 2014 shortening the length of
the pool to deliver 100% of your equity sooner.
Harvest Wheat Pool Locations
• Western Australia
• South Australia
• East Coast
THE ADVANTAGE OF A POOL PORTFOLIO
* All deliverable grades and applicable
delivery periods or Golden Reward tables
can be found at www.awb.com.au.
By diversifying your grain marketing as part of a portfolio approach, you can participate in
more pricing windows while creating a spread of steady cash flow across the season.
The table below illustrates how easily you can spread your potential cash flow across the
season to assist in managing your farm.
POTENTIAL PORTFOLIO STRATEGY MARKETING / SELLING FOR THIS SEASON
JAN
FEB
MAR
APR
MAY
JUN
JULY
Season Starter
Pool (10%)
AUG
SEP
OCT
Early Commitment
Pool (10%)
NOV
DEC
Harvest Pool
(30%)
Pre-Harvest
Cash Contracts (20%)
Post-Harvest
Cash Sales
(20%)
Harvest Cash
Sales (10%)
CASH FLOW FROM PORTFOLIO STRATEGY IN THE 12 MONTHS FROM HARVEST
JAN
FEB
MAR
APR
MAY
JUN
JULY
Cash
Contracts
(30%)
Season
Starter
Pool 1st
Dist (5%)
Post
Harvest
Cash
(10%)
Harvest
& ECP
1st Dist
(10%)
Post
Harvest
Cash
(10%)
Season
Starter
Pool 2nd
Dist (5%)
Harvest
& ECP
2nd Dist
(10%)
AUG
JAN - JUN
SEP
Harvest
& ECP
3rd Dist
(10%)
OCT
NOV
DEC
Harvest
& ECP
Finalisation
(10%)
WHY AWB POOLS?
At AWB we have a proud history of managing some of Australia’s largest wheat pools. We have a solid track record
of pool performance, reliable pool estimates and a flexible range of payment options to help structure your cash
flow. An AWB wheat pool should be part of a diversified grain marketing portfolio.
EXPERT, OBJECTIVE MANAGEMENT
When you choose AWB as your Pool manager you are taking the stress and emotion out of pricing your grain.
Choosing a Pool represents a smart and simple marketing decision because you’re engaging the services of
an experienced team to manage the marketing program on your behalf.
PARTNERSHIP SUPPORT
The AWB team is committed to ensuring we are the partner of choice for all your marketing needs. The
national farm marketer network and the Grower Service Centre (1800 447 246) focus on providing superior
customer service and support for you and your business.
STAY CONNECTED
Follow your pool contract performance through regular Estimated Pool return updates and keep in touch with
world and local grain markets with AWB Video webcasts, quarterly Pool Talk online market recaps or discuss
your pool performance with your local AWB farm marketer.
PRODUCTION ADVANCES
If you’re looking for cash before harvest, you can take out a Harvest Early Commitment or Pool Access
contract and apply for an $80 advance per tonne. Payment options are limited to Advance payment or AWB
Harvest Loan and your application needs to be accepted, so if you’re interested, check all the program details
at www.awb.com.au
GOLDEN REWARDS
Golden Rewards was reintroduced by popular demand and now include added value through quality
adjustments for protein, screening and moisture on bin grades APW and better. Quality scales are sometimes
adjusted and new grades are added, so check the latest information at www.awb.com.au
GUARANTEED POOL DISTRIBUTION DATES
AWB understands the pressure that cash flow uncertainty can bring to your farming operation. With
guaranteed distribution dates you can budget with confidence.
2013/14 GUARANTEED DISTRIBUTION DATES: AWB HARVEST WHEAT POOL
MONTH
DISTRIBUTION
DEFERRED DISTRIBUTION
Harvest deliveries
Our guarantee is for the date of the payment only (and
not a guarantee as to payment amount) as we do not
want to limit the trading opportunities and return to the
April
Fri, 18 Apr 2014
July
Fri, 18 Jul 2014
Fri, 25 Jul 2014
guaranteed time, AWB offers to pay farmers interest
October
Fri, 17 Oct 2014
Fri, 24 Oct 2014
at the rate of 18% per annum for each day that the
December
Pool. To the extent that a payment is not made by the
AWB Harvest Wheat Pools Finalisation Wed, 31 Dec 2014
payment is delayed.
AWB Pool
CHOOSE YOUR POOL
PAYMENT OPTION
Do you want the majority
of your cashflow pre or
post 1st July?
Pre
1st July
Post
1st July
Do you want the majority
of your cashflow upfront
or spread over the life of
the pool?
Do you want the majority
of your cashflow from
July over the remaing
pool life?
Upfront
Spread
Spread
From July
AWB DEFERRED
POOL DISTRIBUTION
AWB HARVEST LOAN
AWB ADVANCE PAYMENT
AWB DISTRIBUTION
•Structured convenient line of
credit paid within 7 days of
delivery
•Credit limit of 75% of NEPR #
less estimated costs
•Automatic repayments of loan
balance via Pool distributions
•No application fees or
security required
•Potential Top Ups (the timing
and amount of which is at
the discretion of AWB) to give
you increased access to cash
flow
•An underwritten loan and
competitive interest rates
(exclusions apply)
•Flexible loan option available
(must be selected at time of
contracting or delivery)
•Provides the bulk of your
entitlement as cash within
7 days of delivery so you
can plan ahead
•Advanced payment of 75% of
NEPR # less estimated costs
•Provider of Top Ups (the
timing and amount of which
is at the discretion of AWB) to
give you increased access to
cash flow
•The Advance Payment
product is underwritten
providing financial peace of
mind (exclusions apply)
•Cash flow spread over the
term of the AWB Wheat Pool
•Payments every three months
from harvest
•15%-30% of equity pay
range for each distribution
until 100% equity paid.
•Guaranteed distribution dates
•Increase your return from
AWB Pools by removing
financing costs
•Pool cashflows commence
from July, early in the next
financial year after harvest
•Distributions commence
quarterly from July
•July distribution: 30%-60%
of equity paid
•AWB Wheat Pool generate
interest income from this
product and returns this
income to growers who select
this payment option
•Guaranteed distribution dates
# Nominated Estimated Pool Return (NEPR): The NEPR is simply the EPR* that we lock down at a point in time. The NEPR is only used to determine initial harvest payments to
growers who have elected to obtain the AWB Loan or Advance Payment Products. AWB communicate the NEPR via media release published on the AWB website.
* Estimated Pool Return (EPR): The EPR is a FOB equivalent price representing the estimated return AWB is expected to pay against a particular grade in a particular pool.
The EPR is quoted on a FOB GST exclusive basis and is net of all pool establishment, operating and marketing costs. The EPR does not include costs of receiving, storing and
moving grain to port.
DISCLAIMER: You should seek independent financial, legal and taxation advice before you select an AWB finance payment option. For more information
about these options please refer to the current AWB Pool Payment and Finance Options Terms and Conditions booklet and “A Closer Look at AWB Pools”
document, both of which can be found at www.awb.com.au.
2013/14 AWB POOL DELIVERY NOMINATION CODES
ACQUIRER: AWBHP
PAYMENT METHOD
CBH: WA
Grainflow: East Coast & SA
Viterra: SA
ABA
Graincorp: QLD, NSW,
VIC, SA
PAYMENT TERMS
AWB Harvest Loan
AWB Harvest Loan
HL
N
7 Days
AWB Flexible Loan
AWB Flexible Loan
FL
F
7 Days
Advanced Payment
AWB Advanced Payment
AP
A
7 Days
Distribution
AWB Distribution
DI
E
Quarterly
Deferred Distribution
AWB Deferred Distribution
GD
G
From July Quarterly
ECP Contract or
Pool Access Contract
Quote “1” Series Contract Number for all BHCs
As per selected payment method
DISCLAIMER: This document is published solely for general information purposes. Nothing in the document constitutes or is intended to constitute
financial, investment, tax legal or any other form of advice, recommendation or a representation that any transaction, or otherwise is suitable or
appropriate to your individual circumstances. The views expressed do not constitute a recommendation to act. No company in the AWB/Cargill group
guarantees the performance of any product or returns. Past performance is not indicative of future performance. No representation or warranty,
either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contain herein, nor is it intended
to be a complete statement or summary of any applicable terms and conditions. Any information referenced is believed to be accurate at the time
of compilation and is provided by AWB/Cargill in good faith. To the fullest extent permitted by law, neither us nor any of our associates and related
bodies corporate, directors, employees or agents accept any liability for any loss or damage arising out of the use of all or any part of this document.
WA
Great Southern
08 9865 1670
Kulin Region
0428 158 118
Geraldton
08 9964 1051
Wongan Hills
08 9671 1755
CALL 1800 4 GRAIN
(1800 447 246)
Helping Farmers Prosper
SA
Lower North and
SE South Australia
08 8408 8400
Lower North
08 8524 9050
York Penisula &
Northern SA
08 8664 1789
Mallee
03 5028 2230
Eyre Peninsula
08 8682 3500
Vic
North Central
Victoria
03 5482 4252
South Central
Victoria
03 5382 5544
North Eastern
Victoria
03 5743 2589
Victorian Mallee
03 5033 1370
Western Victoria
03 5382 6484
QLD
Central
Queensland
07 4956 5855
Southern
Queensland
07 4690 1200
NSW
North NSW
02 6792 4924
Central NSW
02 6362 6627
Wagga Wagga
02 6933 6000
Parkes
02 6861 1100