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Wheat Marketing Act - Australian Wheat Board - Report and financial statements, together with Auditor-General's Report - Year ended 30 September - 1985


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The Parliament of the Commonwealth of Australia

AUSTRALIAN W HEAT BOARD

Annual Report

1984-85

Presented II March 1986 Ordered to be printed 20 March 1986

Parliamentary Paper No. 72/1986

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CONTENTS

CORPORATE OBJECTIVES 3

PERFORMANCE INDICATORS 4

CHAIRM AN’S REVIEW 7

AUSTRALIAN WHEAT-BOARD MEMBERS 8

HIGHLIGHTS OF 1984-85 - 10

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MANAGEMENT STRUCTURE 28

MANAGEMENT 29

FEATURE: TH E NATIONAL GROWER PAYMENTS SYSTEM’ 30

FINANCIAL STATEMENTS 33 temmmmmmmmmmwmmmmmmmmmmmmmmmmmmmmm

AUDITOR GENERAL’S REPORT 51

APPENDICES 52

AUSTRALIAN WHEAT BOARD OFFICES 68

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Grain thrower inloading wheat at a temporary storage, Nyngan, New South Wales

Q O RPO R A TE ^B JE C T IV E S

T he AWB has the statutory objects of securing, developing and maintaining markets for Australian w heat and maximising the returns to growers from the marketing of wheat. In pursuing these statutory objects, the AWB has the following objectives:

1. T he development of an efficient m arketing framework on the international m arket and domestic m arket for all wheat acquired, with the aim of maximising returns to growers.

2. The establishment of efficient m anagem ent and control, in co-operation with other relevant authorities, over m atters connected w ith the handling, storage, protection, treatm ent, transportation, shipment, sale and financing of the A ustralian w heat crop.

3. The encouragement of planning and co-ordination of the wheat industry at a N ational and State level in order to ensure th a t the present and future requirements of the w heat industry are met.

4. The m aintenance of accurate records to ensure sound financial m anagem ent and provide accurate data for planning and analysis. 5. T he m aintenance of acceptable standards of w heat quality w ith the aim of achieving a satisfactory balance between growers’ returns and market

requirements.

6. T he encouragement of appropriate research to ensure th a t the future requirements of the wheat industry are m et particularly in regard to marketing and financial management.

7. T he development of effective liaison w ith governments, w heat industry organisations, and bulk handling authorities with a view to providing timely and accurate inform ation to these bodies and other interested parties on matters affecting the Board.

8. T he form ulation and presentation of Australia’s views as a major wheat producer and exporter in appropriate international discussions in conjunction with governm ent and industry spokesmen.

9. To fulfil its responsibilities to its employees as a progressive employer.

$ u §

PERFORMANCE INDICATORS

SHIPPING The AWB, under the terms of the Remuneration Agreement, is required to allocate wheat shipments equitably between the State Bulk Handling Authorities. The State’s shipping capacity, its exportable surplus and the marketability of that wheat surplus, must be considered when fulfilling this objective.

It was not appropriate to apply the ‘fair share principle’ in 1982-83 when the eastern States suffered severe drought, nor in 1983-84 when record receivals, which included large quantities of weather damaged wheat, distorted the supply/capacity equation.

EXPORTS The annual export target is based on export availability, logistical constraints within Australia, quality considerations, and world demand and pricing versus carryover costs.

In the last two years, external factors have prevented the export target from being achieved. In 1983-84, industrial disputes in New South Wales and the receival of 4.6 million tonnes of feed quality wheat caused severe logistical problems. In 1984-85, many non-traditional exporters competed on the world market, and Argentina continued to export wheat for longer than the traditional 4-6 month period, creating additional competition. Minor logistical problems were also experienced due to the very high carryover from 1983-84.

GROWER PAYMENTS The AWB, in conjunction with the BHAs, aims to pay wheatgrowers their first GMP advance within 21 days of wheat delivery.

In 1984-85 the majority of growers in all States except Victoria were paid within 3 to 4 weeks of delivery. A small minority experienced significant payment delays.

The problems encountered during the processing of payments were associated primarily with the late enactment of the Wheat Marketing Act 1984, and were compounded by the record crop and unusually short harvest period.

PERSONNEL Staff Turnover A downward trend in staff turnover over the last two years is pleasing, however the AWB remains concerned about turnover among senior professional and technical staff.

LAND RISK LOSSES These figures show the losses from both permanent and temporary storage. T he losses recorded in each financial year may relate to several pools of wheat. The majority of losses were caused by water entering temporary stores.

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SHIPPING -1984-85.

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h h b b I

PAYMENTS T O W H EA TG RO W ERS Payment Analysis — 1984-85

2 3 4 5 6 7 8 9 >10

% Paid in Each Week

EXPORTS*

STAFF TU R N O V ER

1982-83 1983-84 1984-85

L A N D RISK LOSSES ($000) L A ND RISK LOSSES ($000)

The Honourable John Kerin, M.P. Minister for Primary Industry

179 Queen Street MELBOURNE VIC 3000 4 December 1985 CANBERRA ACT 2600

My Dear Minister, I am pleased to report that the AWB performed well during 1984-85, setting a new export record after Australia’s second largest wheat harvest (18.3 million tonnes), in the face of the most challenging marketing environment I have ever experienced.

The year was characterised by an oversupplied world wheat market, weakened demand and increasing competition between wheat exporters. Yet, against this background, a record 14.6 million tonnes of Australian wheat was exported. This was an impressive achievement reflecting both the AWB’s marketing expertise and the support of the State Bulk Handling Authorities. The AWB continued its thrust to market wheat as widely as possible, exporting to 39 countries, and successfully renegotiated several Long Term Agreements.

Wheat prices in US$ terms declined markedly during the year under the increasing pressure of the competitive world market. The drop in world prices was further exacerbated by the announcement in May 1985 of the US intention to both reduce its wheat stockpiles and

improve its share of the world market. The initial intention of the US Export Enhancement Program (EEP) was to attack only EEC subsidised markets. Predictably, the EEC countered US moves by subsidising exports to whatever level was necessary to make sales and this in

turn accelerated the fall in wheat prices. We are now in the midst of a ‘trade war’ between these two major exporters in which even Australia’s traditional markets are being affected. The AWB, as a price taker, has had no choice but to reduce Australian wheat prices.

The effects of the 1984-85 decline in world prices were cushioned to a large extent by the falling value of the Australian dollar. For 1984-85 the Guaranteed Minimum Price (GMP) for Australian Standard White was set at $145.35 per tonne, a decrease on the previous year’s level of $150.00. A n average payment of $115.51 per tonne was made to growers after

deductions for storage, transport and other statutory charges. Again, no call was made to the Commonwealth Government to support the price paid to growers for wheat delivered.

The AWB continued to place great emphasis on its relations with other sectors of the wheat industry within Australia. Awareness of the need to contain off-farm costs at a time when many wheatgrowers are facing increasing financial difficulty has been reflected in the new Grain Storage and Handling Agreement between the Bulk Handling Authorities and the AWB. The main feature of the Agreement, which takes effect from 1 October 1985, is that each party will bear financial responsibility for its performance.

This report is submitted in accordance with Section 63 (1) of the Wheat Marketing Act 1984.1 am pleased that it has been presented so promptly after the end of the financial year on 30 September 1985. My Board regards the timely completion of the Financial Statements, and the fact that there is no Audit qualification, as an indication of

management efficiency.

The AWB has maintained its position as Australia’s largest exporter and I believe it is not only performing well, but effectively.

:

L. V. Price, Chairman, Australian Wheat Board

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^JST R A L IA N Ύ ^Ή Ε Α Τ jgOARD |^ |E M ]

1984-85 BOARD (a t 30 S e p te m b e r 1985)

Sir Leslie Price, O.B.E. Chairman

Mr B.W. Bishop Grower Member (Vic)

Mr C.E. Condon Grower Member (Qld)

Mr J.V. Delahunty Grower Member (Vic)

j

Mr A.B. Eichner Grower Member (SA)

Mr E.N. Fitzpatrick Member to represent the Commonwealth

Mr T.J. Flugge Grower Member (WA)

Mr J.C. Frearson Member with Special Qualifications

Mr G.B. Frend Grower Member (NSW)

Mr M.S. Shanahan Grower Member (SA)

Mr B. Hewitt Grower Member (WA)

Mr M.W. Taylor, C.B.E. Grower Member (NSW)

Mr R.D. McLeod Grower Member (Qld)

Mr N.C. Marran Member with Special Qualifications

Mr W.H. Thornton Member with Special Qualifications

1985-86 BOARD Follow ing a review o f th e c o m p o sitio n o f th e B oard, th e M in iste r for P rim a ry In d u s try a n n o u n c e d th a t, from 1 O c to b e r 1985, th e new B oard w o u ld com prise:

C h airm an : Sir Leslie Price, O.B.E. C h a irm a n D esig n a te: M r C .E . C o n d o n (Q ld G ro w e r M em b er) G o v e r n m e n t M em b er: M r E .N . F itzpatrick G row er M em b ers: M essrs. B.W. B ish o p (Vic), T.J. Flugge (WA), M .S. S h a n a h a n (SA ), M.W. Taylor, C.B .E. (N SW ) S p e c ia list M em b ers: M essrs. M . C o n n e ll, J.C. F rea rso n , I.M . Flaig, N .C . M a rra n

O n S ir Leslie’s r e tire m e n t in 1986, a new Q u e e n s la n d grow er m e m b e r will b e selected to replace M r C o n d o n in t h a t capacity.

9

JJTIGHLIGHTS OF 1984-85

• Review of AWB Board composition, and the announcement of new 1986 Board members, by the Minister for Primary Industry.

• New annual shipping record of almost 14.6 million tonnes of wheat.

• Long Term Agreements renegotiated with Egypt, Iraq and Abu Dhabi.

• Sale to Colombia, the first since 1971.

• First sales to Pakistan since 1978-79.

• Successful marketing of remaining quantity of weather-damaged, feed quality wheat from the 1983-84 crop.

• First season of the domestic permit system which enabled stockfeed wheat to be purchased direct from wheatgrowers. Transactions totalled 351,114 tonnes.

• AWB Seminars in New South Wales and Queensland attended by about 2,000 wheatgrowers.

• New Grain Storage and Handling Agreement signed with State Bulk Handling Authorities to cover the period 1 October 1985 to 30 June 1989.

• Total revenue generated for the year was a record, being 16.4 per cent above 1983-84 levels.

• Financing facilities for 1984-85 were arranged for amounts up to $A2,100 million and US$2,000 million.

• Successful conversion of the grower payments system to the new IBM computer.

• London and New fork offices established.

• Implementation of new staffing and salary structures completed.

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^980-81* 1981-82t 1982-83# 1983-84# 1984-85#

PHYSICAL Area for wheat (000 hectares)!: 11,283 11,885 11,520 12,908 12,105

Production (000 tonnes)!: 10,856 16,360 8,876 21,903 18,291

Yield (tonnes per hectare)!: 0.96 1.38 0.77 1.70 1.52

Availability (000 tonnes) Wheat received § 10,021 15,531 7,927 21,059 17,544

Carryin 4,268 2,044 4,879 2,285 7,518

Total Availability for Export, Domestic Disposal & Carryover 14,289 17,575 12,806 23,344 25,062

Exports of wheat, flour and wheat products 9,614 11,068 7,280 14,159 14,679

Domestic Disposals 2,631 1,628 3,241 1,667 1,934

Total Disposals 12,245 12,696 10,521 15,826 16,613

FINANCIAL Guaranteed Minimum Price (pool basis; $ per tonne; ASW) 131.92 141.55 141.32 150.00 145.35

Revenue ($000) Wheat Sales 1,955,375 2,000,159 1,849,671 2,665,609 2,939,205 Interest 101,441 72,525 77,000 58,674 117,459

Expenses ($000) Direct 1,600,330 1,814,170 1,506,546 2,351,142 2,476,133

Marketing & Promotion 2,059 2,747 2,891 3,443 2,803

Finance 94,432 156,739 111,731 157,011 223,450

Administration 10,244 10,780 14,148 16,819 23,059

Depreciation 197 267 396 337 1,182

Total Debtors ($000) 466,233 441,522 334,321 588,468 1,068,114 Borrowings At Year End ($000) 365,951 862,174 347,797 1,286,391 1,722,126

t Source: Australian Bureau of Statistics. * 1 December to 30 November. t 1 December 1981 to 30 September 1982. # 1 October to 30 September. Preliminary figures for 1984-85.

§ Includes net early season deliveries. __ _

Due to amendments to the Wheat Marketing Act, the AWB changed from a December-November to an October-September year in 1982-83. 1981-82 was a 10 month (December-September) transition period.

The Chinese vessel, Ma Quan Hai, loading wheat at Fremantle, Western Australia

1DEVIEW OF ACTIVITIES

MARKETING INTERNATIONAL MARKETING ENVIRONMENT

In 1984-85 world wheat production increased by 25 million tonnes, or 5 per cent, to a new record of 521 million tonnes. Production performance among the major

wheat producing countries varied widely.

• C hina’s wheat production increased by over 6 million tonnes to a new record of 88 million tonnes.

• US production increased by almost 5 million tonnes to over 70 million tonnes.

• Production in the EEC rose by almost 17 million tonnes to a new record of 76 million tonnes.

• Wheat production in the USSR fell by 5 million tonnes to 75 million tonnes due to poor crop conditions.

• A drought resulted in a fall in Canada’s wheat production by over 5 million tonnes to 21 million tonnes.

World wheat trade during the 1984-85 July-June International Wheat Council year increased by 5.5 million tonnes to 103.5 million tonnes. The EEC increased

exports following a record harvest, while US exports fell by 1.2 million tonnes, the third successive decline. Canadian and Argentinian exports fell by about 2 million tonnes each. Many non-traditional wheat

exporters emerged in 1984-85 with countries such as Sweden, Austria and India selling over 7 million tonnes which added to the competition in the world

market during the year. Purchases of wheat by major importing countries increased by 2.6 million tonnes. The USSR increased imports by over 5 million tonnes to 25 million tonnes, the

highest level of imports since the late 1970s. Imports by China fell by over 2 million tonnes to 7.4 million tonnes, the third successive reduction in import requirements, while purchases by Egypt

were reduced by over 1 million tonnes to the 1982-83 level of 6.2 million tonnes.

Prices Review The year 1984-85 was characterised by falling US$ world wheat prices. Asking prices for Australian Standard White

(ASW) peaked in October 1984 at around US$157.00 and then declined steadily to a low of US$126.00 in August 1985, a 20 per cent price reduction. Prices in October were still heavily influenced by the large wheat purchases made by the USSR and the People’s Republic of C hina in late 1983-84. Once the influence of these sales had passed, prices fell under the impact of the high world wheat surplus.

As the rate of wheat purchases slumped in the final 1984 quarter, the large Argentine and Australian wheat harvests commenced. Argentina, anxious to secure sales, began an aggressive marketing campaign and, in the process, its export price fell from parity with US prices to a US$40 discount. Prices

moved steadily downwards with the EEC also pursuing export markets by offering subsidies of up to US$30 per tonne.

In mid-1985 the US announced the introduction of its Export Enhancement Program (EEP). This program ostensibly was aimed at maintaining market share against EEC encroachment of markets through subsidised wheat sales. Expectations as to the success of this program, along with considerable support from the US farm

program which withdrew large quantities of US wheat from the market, halted the decline in US wheat prices toward the end of the 1984-85 year. As a consequence, the

asking price of Australian wheat, which is based mainly on the US price, also stabilised.

EXPORT MARKETING In market circumstances where most buyers were inclined to favour purchasing for prompt shipment above long-term purchasing commitments, the AWB was successful in renegotiating Long Term Agreements with Egypt, Iraq and Abu Dhabi. Security of supply, technical assistance and credit were among factors encouraging these buyers to make a commitment to Australian wheat.

Egypt was the AWB’s largest customer for 1984-85, with exports of over 2.4 million tonnes ; the USSR purchased 1.8 million tonnes. Australia’s Long Term Agreement with China expired during 1984-85, however Australia was able to maintain its position as a preferred supplier with shipments of 1.4 million tonnes. Shipments to Iraq totalled about 1.2 million tonnes.

The re-emergence of Pakistan and Sri Lanka as significant markets for Australia’s wheat highlighted the AWB’s aggressive stance on marketing the 1984-85 crop. The loyalty of

mills in the Gulf Region was maintained throughout 1984-85 with an almost total commitment to purchase Australian wheat by Kuwait and the People’s Democratic Republic of Yemen. In addition, Iran purchased around 1.4 million tonnes of Australian wheat. After an initial sale to Jordan in 1983-84, the AWB consolidated

its position in this market with the sale of a further two cargoes. The AWB re-established itself as the predominant supplier to the Arab Republic of Yemen. This success was

notable as the market had been disrupted by US Blended Credit in 1983-84.

During 1984-85 the AWB sold its first commercial quantity (60,000 tonnes) of wheat to Ethiopia on three year credit terms. The Australian Government, through the Australian Development Assistance Bureau (ADAB), supplied a further 64,000 tonnes of aid wheat,

purchased from the AWB on commercial terms. Commercial shipments to Ethiopia totalled 34,008 tonnes with another shipment programmed for October 1985. Also in Eastern Africa, Kenya emerged as the AWB’s single largest commercial wheat buyer in that region. Commercial shipments

totalled 110,000 tonnes while aid shipments totalled a further 20,000 tonnes.

The AWB was successful in making inroads into the South American market during 1984-85, with a sale of 50,000 tonnes to Colombia, the first sale to that country since 1971. Mexico continued as an

important market for Australian feed wheat with shipments of 321,000 tonnes.

Large sales to other important regular customers also were made throughout the year. Shipments to Japan exceeded 1 million tonnes. Indonesia bought 554,000 tonnes compared with 440,000 tonnes the previous year and Singapore purchased 117,000 tonnes. The Republic of Korea continued to be the major purchaser of Australian feed wheat in 1984-85 with shipments totalling 1 million tonnes. Sales of milling wheat to that country were also re-established with the six major flour mills purchasing trial cargoes of Australian wheat.

During 1984-85, the AWB completed the marketing of the remaining quantity of weather damaged, feed quality wheat from

the 1983-84 crop. This experience has enabled the AWB to develop the necessary skills and expertise to market a significant quantity of weather damaged wheat, should the situation arise again.

Food Aid Wheat allocated by ADAB under Commonwealth Government aid programs totalled 307,000 tonnes. Major beneficiaries were China, Ethiopia, Bangladesh and Egypt, Shipments of aid wheat were financed by ADAB and were organised by the AWB.

Recognised Exporters During a year of record exports, the AWB again worked closely with Recognised Exporters. Over 5 million tonnes of wheat, or about one third of the AWB’s total export sales, were sold through Recognised Exporters, compared with 4 million tonnes in 1983-84. This reflected the purchasing patterns of countries such as the Republic of

Korea, Japan, Indonesia, Malaysia and Singapore who traditionally buy through Recognised Exporters.

OVERSEAS MARKET SUPPORT The AWB believes that it is essential that customers are able to make best

use of Australian wheat and flour. The importance of this was confirmed during 1984-85.

In December 1984, a Technical Co­ operation Agreement was signed with China, one of the AWB’s largest long term customers. The signing had immediate

impact, and Chinese bakers and grain storage and handling specialists undertook study in Australia in 1985. The AWB’s donation of grain analysis equipment and

the development of closer personal ties between Chinese and AWB specialists will assist the servicing of this market in the future.

As part of the Long Term Agreement with Egypt signed in November 1984, the AWB agreed to assist Egypt in its move from a bagged to a bulk grain storage and handling system by constructing temporary bulk grain facilities (bunkers) at the Upper Egyptian city of Esna. The twin 10,000

tonne capacity bunkers will be constructed in conjunction with Co-operative Bulk Handling Limited (Western Australia) in early 1986.

The design for the silo facility at Sohag, Upper Egypt, to be built by the AWB in association with the Australian Development Assistance Bureau, has also

been finalised. The AWB has now called for tenders in Australia (closing date 6 January 1986) in order that construction can proceed during 1986.

The policy of establishing technical experts in off-shore markets was extended in 1984-85. In Egypt and the Middle East region, two AWB baking consultants worked with Arab colleagues to assist with

automation of traditional bread production, and to develop bakery management and maintenance practices.

The inherent advantages of Australia’s white wheats for noodle production provided the theme for the AWB’s first noodle seminar in South East Asia. Held in

Singapore and attended by millers from

throughout the region, the seminar was later followed by noodle workshops in individual customer countries.

In addition to these new assistance packages, further milling and baking training courses were conducted in Australia during 1984-85. These established courses were supplemented by a new six week Grain Storage and Handling course in recognition of the demand for storage information among the AWB’s customer countries. The new course was run by the AWB with the co-operation of the State Bulk Handling Authorities.

A further significant achievement was a ‘Wheat Marketing’ seminar conducted by the AWB in Alexandria, Egypt. The seminar provided a forum for Egyptian wheat purchasers, academics, millers and bakers and for AWB executives to exchange ideas in a forthright manner, and greatly increased the level of understanding between the ‘seller and users’ of Australian wheat.

Packing shami bread at Meatober Bakery in Cairo, Egypt.

PROSPECTS FOR DOMESTIC INTERNATIONAL MARKETING WHEAT TRADE

16

International wheat trade in 1985-86 is forecast to decline by about 11 per cent to 92 million tonnes, down 11.5 million tonnes from 1984-85. The lower volume is due mainly to an anticipated decline in purchases by the world’s largest importers, the USSR and China.

Poor weather in Canada and the UK late in 1984-85 resulted in a significant deterioration in the quality of their 1985-86

crop, therefore presenting an opportunity for sales of high protein Australian wheat to be made to Europe in 1985-86. In addition, opportunities are likely to exist for exporters to supply southern East European countries as drought has adversely affected their wheat crop.

Credit is expected to continue to be an issue in 1985-86, as many wheat importing countries are experiencing balance of payments difficulties. Other factors likely to

have an impact on the international wheat market in the future include countertrade arrangements and government backed loans, to project assistance and development packages.

The US$ price outlook for the coming year is uncertain. The aggressive market climate, and the extent to which other countries will

be prepared to subsidise wheat exports, make price prediction a difficult exercise. Quality problems in the EEC and Canada should strengthen prices of higher protein wheats, however ample availability of all other wheat grades would indicate that any real improvement in their prices is unlikely. Also, the price subsidy war between the US and the EEC is expected to continue to have a major, adverse, impact upon the international wheat market.

The introduction of the Wheat Marketing Act 1984 saw significant developments in domestic wheat marketing, including new pricing provisions for wheat for human consumption, and a permit system for wheat for stockfeed purposes. Domestic wheat sales for the 1984-85 season totalled

1.8 million tonnes compared with 1.6 million tonnes in 1983-84, when the lowest sales since 1969-70 were recorded.

Wheat for Human Consumption Under the provisions of the Wheat

Marketing Act 1984, a new formula for determining the price of wheat for domestic human consumption was introduced on 1 October 1984. The price is now

determined quarterly by averaging export wheat prices for the forward and past quarters and adding the Tasmanian Freight Levy and a service charge approved by the Minister. For the 1984-85 season the quarterly price averaged $210.73 per tonne which included a $16 per tonne service charge and $1.40 per tonne to cover the cost of wheat shipments to Tasmania. This represented a decrease of $8.68 per tonne (4 per cent) over the single annual price for 1983-84. Domestic consumption was maintained at 1 million tonnes for 1984-85.

Wheat for Industrial Purposes Wheat for domestic industrial purposes maintained a consumption level of 336,000 tonnes during 1984-85. The policy of pricing wheat for industrial purposes by directly relating these prices to the AWB’s daily FOB export wheat prices continued during 1984-85. Industrial prices for the current and five forward delivery months were available daily in either Australian or US currencies, with buyers able to establish forward delivery contracts at the quoted daily price/s.

* ^ · ™ 0 · · · Î’ « · · · · · · · Î’ Ο · ^ · Î’ Μ Î’ Î’ Ε έ ί β Η

Wheat for Stockfeed Purposes DOMESTIC PROMOTIONS

Domestic sales of wheat for stockfeed purposes by the AWB amounted to 295,000 tonnes for 1984-85. This consisted primarily of wheat received into the Feed

wheat category and compares to the 301,000 tonnes consumed domestically during 1984-85. Under the provisions of the Wheat Marketing Act 1984, however, additional supplies of wheat for domestic stockfeed purposes were transacted under the permit system administered by the AWB in accordance with the legislation and guidelines issued by the State Ministers of Agriculture. Permits were available to

buyers, after paying the required State fee, to cover purchases of specified tonnages of wheat for domestic stockfeed purposes from wheatgrowers at mutually negotiated prices. The price negotiated was not subject to Guaranteed Minimum Price or pooling arrangements administered by the AWB. For 1984-85, permit transactions totalled 351,114 tonnes.

Stockfeed wheat is often included in balanced rations used by the poultry industry.

AWB domestic promotions have a dual purpose. Firstly, to keep growers aware of change in technical/quality aspects of wheat production; secondly, to inform

growers and those associated with the wheat industry about international and domestic market trends and the AWB’s diverse range of activities in Australia and overseas.

In order to achieve these goals, the AWB circulates information about its strategies and activities through the print and electronic media and through direct contact

with wheatgrowers. These communication channels were vital in a year when grower anxiety was fueled by depressed international prices and the export subsidy trade war between the US and the EEC.

The grower seminars in the wheat belt continued to be outstanding successes with about 2,000 growers attending the March

seminars in Queensland and the July seminars in New South Wales. Presentations by the AWB’s senior management, led by the Chairman, Sir Leslie Price, prompted strong discussion about marketing strategies and the Wheat Marketing Act 1984.

The AWB’s marquee and exhibit, using the ‘Three Billion Dollar Industry’ theme, attracted large audiences at agricultural field days and country shows around Australia.

The Display Unit continued to provide a venue for direct contact between wheatgrowers and AWB staff.

I I Y Y 17

TRANSPORTATION, HANDLING AND STORAGE

Bulk Handling Authorities As required under the Wheat Marketing Act 1984, the AWB and its Authorised Receivers, the State Bulk Handling Authorities (BHAs), entered into a new Grain Storage and Handling Agreement in

1985 to cover the period 1 October 1985 to 30 June 1989. The Agreement is the result of extensive rounds of discussions between the AWB and the BHAs and defines accurately the bulk handling services required by the AWB from each BHA for the wheat grown and delivered in the 1985-86 to 1988-89 seasons. It also details the manner and extent of remuneration for those services.

The major feature of the new Agreement is that it is performance oriented, both in respect to the AWB and the BHAs. Under

the previous Agreement the BHAs were paid on a time and quantity related basis. Remuneration will now follow a fee for service approach and each party will bear financial responsibility for its performance. For example, under the Agreement ship loading rates have been substantially increased and the BHAs will now be required to meet a shiploading capacity of 9,000 tonnes per day on a 30,000 tonne shipment. Similarly, the AWB bears responsibility under the Agreement to provide an orderly flow of shipping and to bear the costs associated with carryovers resulting from marketing factors. These costs may well be reflected in growers’ returns on a State basis.

In fact, the new Agreement provides for a number of cost elements previously borne by a national pool to be substantially accounted for on a State basis. Examples of these costs include outturn shortages, the

costs associated with two port loading, and claims for damages resulting from cargo contamination in the bulk handling system.

The new Agreement represents a major step forward in the evolution of the financial and operational relationship between the

AWB and the BHAs, and the AWB is confident that it will result in substantial benefits for the wheat industry as a whole.

Interstate Movements In 1984-85, the AWB sought to reduce carryover wheat in New South Wales as shipping capacity in that State was below that required to export the wheat crop. Arrangements were negotiated for the interstate movement of wheat from Grain Handling Authority of NSW (GHA) storages located in the Southern Riverina

area of New South Wales to the Grain Elevators Board of Victoria’s Geelong Terminal. A total of over 237,000 tonnes of

wheat was moved by a combination of rail and road during the year.

Similarly, in an effort to overcome admixture problems with Prime Hard wheat for Japan that occurred at the GHA’s Newcastle Terminal, vessels for Japan were loaded at the Queensland State Wheat Board’s Pinkenba Grain Terminal at Brisbane. Almost 95,000 tonnes of Prime Hard wheat were moved interstate from New South Wales stations adjacent to the Queensland/New South Wales border. In order to meet customer specifications, a comprehensive protein testing, blending and monitoring operation was implemented in conjunction with the Queensland State Wheat Board.

Shipping The AWB’s record marketing achievements in 1984-85 were supported by the various State Rail and Bulk Handling Authorities responsible for the transporting, storing and loading of wheat. A new shipping record was set during the year when almost 14.6 million tonnes of wheat was exported,

500,000 tonnes above 1983-84 exports. A total of 647 vessels was loaded at the 18 export terminals operated by State BHAs.

Road train loading wheat, Goondiwindi, Queensland

Although the BHAs were able to support the AWB’s marketing performance during 1984-85, there is a growing awareness that, for Australia to remain a competitive wheat exporter, upgrading of existing facilities and the construction of new terminals in some States is required. In Queensland, construction of the Fisherman Islands Grain Terminal and improvements to the Gladstone Grain Terminal were commenced. During the early part of September 1985, construction began at the new grain terminal at Port Kembla in New South Wales. It is expected to be completed in 1988. Also during September upgrading of the Portland Grain Terminal in Victoria began. In South Australia, a Port Development Committee is considering action for an additional deep water facility to be built in that State.

Freight The AWB established a freight section at Head Office in 1984-85 to be responsible for assessing freight rates and chartering vessels to fulfil the shipping component of the

AWB’s Coast and Freight (C & F) sales. This is part of the service provided by the AWB to its buyers. In the course of 1984-85, 49 ships were chartered to nine destinations lifting a total of 1.6 million tonnes.

19

TREASURY

The primary objectives of the AWB’s treasury operations are to provide adequate, cost efficient funds to enable prompt payment of the GMP to growers and to finance the AWB’s activities ; and to effectively manage the AWB’s foreign currency and interest rate exposures.

All AWB treasury activities are conducted within guidelines approved by the Commonwealth Minister for Primary Industry.

Financial markets both domestically and internationally underwent significant changes in the past 12 months and this process is continuing. In most cases market volatility has become a characteristic feature.

In response to this environment the AWB has adopted the following priorities:

• the establishment of financing facilities which provide much needed flexibility in terms of their product type, financial institution and their geographical locations;

• the use of electronic information services and computer based systems which enable constant monitoring of market conditions and exposures.

The main cashflows arising from the AWB’s operations have been summarised in the diagram below:

FUNDS FLOW

*

Payments to Growers and O ther Payments

International Operations No new international funding facilities were introduced during 1984-85, however the limits of the four existing facilities were all

substantially increased to bring total offshore borrowing capacity to approximately US$2,000 million.

The facilities arranged for 1984-85 were as follows:

• a US Commercial Paper facility for US$750 million managed by Goldman Sachs Money Markets Inc.; • a US Bankers’ Acceptance facility for

US$450 million managed by BankAmerica Capital Markets Group; • a Stg. Bankers’ Acceptance facility for Stg. 250 million managed by Samuel Montagu

& Co. Limited; • a Euro-Note facility for US$500 million managed by Credit Suisse First Boston

Limited.

During September and October 1985, facilities for 1985-86 funding were arranged. The fundamental characteristics of the existing facilities were retained with the following amended limits:

US Commercial Paper US$ 1,000 million US Bankers’ Acceptance US$ 650 million Stg. Bankers’ Acceptance Stg. 210 million Euro-Note US$ 500 million

Three additional facilities also were negotiated for 1985-86:

• a Euro-Commercial Paper facility for US$300 million with four dealers: Credit Suisse First Boston Limited, Merrill Lynch Capital Markets, Salomon Brothers

International Limited, Swiss Bank Corporation International Limited;

• a Direct Note Issuance facility for US$250 million through Citicorp Investment Bank Limited;

• a loan facility for Deutsche Mark 300 million arranged by Commerzbank.

Total offshore borrowing capacity for 1985-86 will be approximately US$3,100 million

Domestic Operations The 1984-85 domestic financing facility was arranged for an amount up to $A2,100 million. Joint lead underwriters to the

facility were: Australian Bank Limited, BA Australia Limited, Elders Finance & Investment Co. Limited, Hill Samuel

Securities Limited, National Australia Bank Limited, State Bank of New South Wales. The facility retained the tender panel system as the primary method of borrowing funds. There were 31 tender panel members.

The 1985-86 domestic financing facility was signed in September 1985. Under this facility the AWB may issue $A Commercial Paper up to a limit of $A1,500 million. Lead managers for this facility are: Australia, and New Zealand Banking Group Limited,

Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking Corporation.

Investments Investment income from all sources was $A25.2 million in 1984-85.

Borrowings The overall cost of borrowing for 1984-85, sourced from both domestic and overseas financial markets, averaged approximately

13 per cent. As wheat export sales receipts are primarily denominated in US$, the repayment of offshore US$ borrowings is protected by a natural hedge.

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FINANCE

Financial Performance

Despite a challenging international marketing and financial environment, the AWB’s financial transactions had record values in 1984-85. To a large extent the effects of the decline in world wheat prices

were cushioned by the falling value of the Australian dollar.

Revenue at $3,290 million represented a rise of $463 million or 16.4 per cent above 1983-84 levels. This was achieved through sales totalling 16.6 million tonnes, an

increase of 4.97 per cent. Expenses were $2,727 million, an increase of $198 million or 7.8 per cent above 1983-84. Direct expenses vary according to the quantity of

wheat sold. These expenses, which included the Guaranteed Minimum Price (GMP) payments to growers, freight, storage and handling, accounted for $125 million of the increase in expenditure. Financing expenses increased by $66 million above 1983-84. This was predominantly offset by interest

revenue on credit sales, which increased by $52 million.

The AWB extended credit to maintain and source export sales in 1984-85. Another indicator of the increase in credit sales was that Debtors as at 30 September 1985 totalled in excess of $1,000 million. In order to minimise the risk exposure associated

with holding international debts, the AWB plans to undertake a foreign debt risk reduction program.

Wheat received totalled 17.544 million tonnes, for which $2,026 million was paid to growers under the GMP payment arrangements. For a summary of the GMP payment per tonne for Australian Standard

White (ASW) wheat on a State basis see Appendix 2, Table 2.

Management Information Systems Management Information Systems (MIS) development activities were undertaken in

accordance with a five year Business Systems Plan (BSP).

A feature of the year was the installation of new computing equipment consisting of an IBM Model 4381 Group 1 computer and

ADABAS/NATURAL database management language software. The subsequent task was the conversion of all the existing production systems from the previous computer installation to the new IBM facilities. This was undertaken in parallel with the development of new

systems as outlined in the BSP. The previous computer installation was finally decommissioned in September 1985.

During the year the major areas of activity involving the use of the new computer included:

• Successful conversion of the grower payments system to the IBM computer; the final GMP advance, deferred payments, subsequent full GMP and subsequent payments for prior pools all were successfully processed;

• Installation of a national data communications network connecting all State Offices to the computer centre in Melbourne;

• Development of online data entry capability for grower payments, general ledger and fixed asset systems to remove delays in preparing data at external bureaux;

• Development of a system to monitor export credit sales and assist in the management of the credit exposure risk;

• Development of an online system to maintain details of domestic market buyers and management of domestic permits.

• Successful processing of the first payments to Queensland growers for the 1985— 86 season.

PERSONNEL CERES HOUSE In 1984-85 the AWB’s management structure was strengthened by the following senior appointments:

Mr P.L. Cooper Manager, Computing Facilities Manager, Quality Control

Manager, Personnel Manager, Strategic Development Manager, Technical

Projects Senior Manager, Internal Audit Manager, Export Marketing (North Asia)

Senior Manager, Domestic Funding

Mr N.H. Wickham Manager, Treasury Policy

Mr B. Homewood

Mr P.R. Matters Mr J.P. Menon

Mr M.M. Moss

Mr C.R. Norris

Mr GJ. Spiel

Mr C.L. Ulrich

During the year, AWB offices were established in London and New York, and a Manager was appointed to the AWB office in Japan. The senior appointments to these

offices were as follows:

Mr R.M. Coulson Manager, London Mr N.C. Officer Manager, Tokyo Dr T.J. Ryan Senior Manager (Vice President), New York

Implementation of the recommendations of the consultancy firm engaged to review the AWB’s staffing and salary structures

was completed during the year. These recommendations included the establishment of a structure designed to strengthen the supervisory role in State

Offices, and rationalisation of staff classifications within Head Office. Work also proceeded on a revision of the terms and conditions of employment for AWB

staff. Staff members increased by 48, from 344 to 392.

Among the training programs conducted in 1984-85 were seven induction courses which were attended by more than 70 people.

In recent years, increases in staff numbers and the diversity of services provided by the AWB have necessitated a review of accommodation requirements.

After consideration of a wide range of options the AWB decided in 1982 to redevelop the existing Headquarters building, ‘Ceres House’. In addition to this project, the AWB has purchased an

adjacent site, 14 Chisholm Place, to accommodate laboratories, computing facilities and a training/audiovisual facility. The present building will be demolished in

February 1986 and a ground floor and six upper floors will then be erected. Ceres House should be ready for occupancy by June 1986 and the annexe, by October 1987.

The project which has been processed under procedures specified by the Parliamentary Public Works Committee, has a budget of $19,233 million.

FREEDOM OF INFORMATION Four requests were received in 1984-85 and all were answered within the required time frame. The subject matter of the requests

included setting of receival standards, deliveries by wheatgrowers to the AWB, and details of AWB present and future computer operations.

One request for access was granted in full and one was withdrawn. O f the two that were refused, one was denied under Section 36 and the other under Sections 27 (1) and 43 (c). One request for internal review of a decision was made; the initial decision was upheld.

These requests cost the AWB approximately $600 in respect of manpower expended and equipment used. As the AWB receives few requests, no FOI staff training was

conducted, although FOI staff have attended courses in previous years. The AWB is continuing to evaluate its procedures for disseminating information in order to make its resources more accessible to the public.

(at 30 September 1985)

Chairman Sir Leslie Price O.B.E.

1

Division 1

Technical 1

Services 1

1

Senior β

Manager f

Operations 1?

R. L. Cracknell [

Senior S

Manager 1

Senior Manager 1

Audit ■

C. R. Norris p i

General ■

“ Manager B

D. J. Sandow B

Executive ■

Planning B

Division 1

Marketing 1

Division 1

e Finance ■

Division I

ACM 1

Marketing ■

R.M. M cC arthy·

ACM I

Finance ■

R. B. Paice I

■ ■ ■ I

Services B

W. J. Murray [

Senior j |

Manager 9

Marketing B H Policy & ■

Services B

R. J. Storey J

Senior b

Manager ■

Marketing *

Vacant______ B

Senior H

Manager *

™ Accounting E J. A. Freeburn B

Senior b

Manager 8

Management B " Information IS

Systems M |

Committee ■

Treasury B

Division B

AGM |

— lreasury 1 1

D. R. Hulme ■

Senior b

Manager H

Domestic ■

Funding B

Senior h

Manager B

International H| Funding a

Secretariat B & Adminis- 1

tration I

D iv is io i^ ^ ^ ^ B

M. J. Doyle B

Board B

Secretary f l

A. F. Rowden *

M AN AG EM ENT

EXECUTIVE MANAGEMENT (at 30 September 1985)

1. Mr D.J. Sandow (General Manager) 2. Mr R.L. Cracknell (Senior Manager Operations) 3. Mr D.R. Hulme (Assistant General

Manager Treasury) 4. Mr A.F. Rowden (Board Secretary)

5. Mr R.B. Paice (Assistant General Manager Finance) 6. Mr W.J. Murray (Senior Manager Technical Services)

7. Mr R.M. McCarthy (Assistant General Manager Marketing)

STATE MANAGERS (at 30 September 1985)

1. Mr D.J. Sandow (General Manager) 2. Mr R. Pacey (Tasmania) 3. Mr P.J. Collocott (Queensland; from December 1985 Manager, Operations

Logistics) 4. Mr E.J. Laskie (Acting Manager, Victoria*; Manager, Queensland from

December 1985) 5. Mr G.M. Lawrence (Western Australia) 6. Mr K.G. Lyons (South Australia) 7. Mr T.A. Pile (New South Wales) 8. Mr R. Fehlberg (Acting Manager,

Victoria from December 1985) *Manager, Victoria, Mr G.J. Watsford, was seconded as Executive Officer of the Grain Flandling Authority of NSW during

1984-85.

5 6 7

29

............................................................................ I

rp H E R A TIO N A L Q R O W E R

pAYMENTS gYSTEM

The National Grower Payments System is designed to ensure wheatgrowers receive the bulk of their payments within three weeks after delivering their wheat to the AWB, in effect before the wheat is sold. These payments are funded by domestic and international borrowings which are repaid by the returns from wheat sales.

Under the wheat marketing legislation, the Guaranteed Minimum Price (GMP) provides the basis for payments to wheatgrowers. It operates to link prices paid to wheatgrowers with market trends while also cushioning growers against any sharp changes in world wheat prices.

Preliminary GMPs (PGMPs) for each of the five categories of wheat are determined prior to the commencement of harvest in August/September. The first payment (Interim Advance) is 90 per cent of the PGMP for the appropriate category of wheat delivered and is paid to growers usually within three weeks of wheat delivery to authorised receival points. Final GMPs are announced later in the season (late February) when production levels, crop quality and probable market returns are mure accurately known. Most growers receive their second GMP payment (Final Advance) during March. A number of deferred payment options are also available in which both Interim and Final Advance payments may be spread over the year. This gives growers the opportunity to adjust their incoming cash flow according to their financial arrangements. During 1984-85 most growers chose the traditional (non-deferred) method of payment but increasing numbers are expected to select from four available deferred payment options in future years. Deferred payments accrue interest at the prevailing Australian Savings Bonds rate.

Growers in all States were paid by the National Grower Payments System for the first time in 1984-85. Until this year payments for Queensland and Western Australian growers were processed on behalf of the AWB by State authorities ; in the other States a uniform system had been operated by the AWB for some years.

Planning for the full national system dates back to October 1982, but a number of problems were still encountered during its implementation. Federal and complementary State wheat marketing legislation, which incorporated substantial changes in the underwriting provisions for the five different categories of wheat, was not enacted until December 1984. This meant that appropriate modifications to the computer programs could not be made

until the eve of the commencement of the 1984-85 harvest. In addition, the existing 10 year old computer facility repeatedly broke down under the new processing system and many : payment runs had to be aborted and recommenced. The large crop and unusually short harvest period added to the processing problems, which manifested themselves in delayed payments to some growers.

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Conversion to a new, more powerful computer facility took place during 1984-85 and its operation commenced on 7 March 1985 in time for the payment of the Final GMP Advances in all States. The new facility has the capacity to process greater volumes of data in each payment run, substantially reducing processing time and also provides for greater

processing flexibility. The associated software has been thoroughly tested and the AWB is confident that payments to growers can be made quickly, efficiently and with minimum error within 21 days of delivery. '

The success of the payment system is also dependent on the co-operative participation of the other organisations involved in the payment process. The Bulk Handling Authorities edit and validate the wheat delivery information, ideally within 14 days, before transferring it on computer tape to the AWB for processing. A new banking facility, which will allow for electronic transfer of payment funds directly into growers’ nominated bank accounts, will be utilized in 1985-86. The facility provides for payments lodged in banks on computer tape

to be credited overnight. It is anticipated that further reductions in the interval between wheat delivery and payment will be achieved once direct links are established between bank computers and the AWB facility.

The new payment system incorporates substantially improved communication processes: bank managers at branch level will be informed of the grower payment timetable and progress through regular newsletters ; laser-printed payment advice notices to growers are to be sorted on a priority basis by Australia Post to ensure rapid despatch. Also, direct

computer links now extend to terminals in State Offices so that payment information, once processed at Head Office, Melbourne, is readily available to the States. The online facilities allow State Office staff to answer grower enquiries about payment details directly over the telephone and information relating to payment arrangements can also be readily updated,

through a direct data entry system. Grower payments officers in State Offices may be contacted on a ‘toll free’ telephone number, (see p. 68)

Although the National Grower Payments System is primarily, and most importantly, an efficient means of making payments to wheatgrowers, it has been developed by the AWB tp serve a number of purposes. As a uniform data base for the Australian wheat industry it will

pave the way for the establishment of a comprehensive‘Wheat Information System’. This will eventually make available such information as wheat variety, quantity and quality on a site-by-site basis. It is anticipated that the system will greatly facilitate co-ordination and planning at all levels of the industry from marketing and shipping to research. Considerable progress has already been made towards its establishment.

The.National Grower Payments System reflects the AWB’s commitment to provide services

STATEMENT BY BOARD MEMBERS Before the financial statements were prepared steps were taken to: i. cause all known bad debts to be written off and adequate provision made for doubtful debts.

ii. ascertain whether any current assets (other than debtors) are unlikely to realise, in the ordinary course of business, their value as shown in the accounting records and, if so, to cause: a. those assets to be written down to an amount which they might be expected to

b. adequate provision to be made for the difference between the amount of the value as so shown and the amount that they might be expected so to realise. iii. ascertain whether any non current asset is shown in the books at an amount which, having regard to its value to the undertaking as a going concern, exceeds the

replacement cost in its current condition at the end of the financial year. When adequate provision for writing down that asset is not made, information and explanations to prevent the financial statements from being misleading by way of the overstatement of that asset will be included. In the opinion of the Members of the Australian Wheat Board the accompanying — Statement of Revenues and Expenses for the year ended 30 September 1985 — Statement of Growers’ Residual Interests at 30 September 1985 — Statement of Assets and Liabilities at 30 September 1985 — Statement of Sources and Applications of Funds for the year ended 30 September 1985 — Notes to and forming part of the Financial Statements for the year ended 30 September

have been drawn up so as to show fairly the state of affairs of the Australian Wheat Board at 30 September 1985 and the activities for the year ended 30 September 1985.

DATED AT M ELBOURNE THIS TW ENTY-EIGHTH DAY OF NOVEM BER 1985 A N D SIGNED O N BEHALF OF THE AU ST R A L IA N W HEAT BOARD

realise; or

1985

L. V. PRICE Chairman

J. C. FREARSON Board M ember Chairman Finance Com m ittee

R. B. PAICE AGM Finance

STATEMENT OF REVENUES AND EXPENSES

for the year ended 30 September 1985

1984 $000

NOTE

$000 1985

$000

Revenue

2,665,609 Wheat Sales 2 2,939,205

58,674 Interest 3 117,459

37,319 Refunds — Wheat Export Levies 4 162,731

65,106 Other 161,099 2,826,708

5 70,322

350,512 3,289,717

Expenses

2,351,142 Direct 6 2,476,133

3,443 Marketing Promotion 7 2,803

157,011 Finance 8 223,450

16,819 Administration 9 23,059

337 Depreciation 2,528,752

297,956 Surplus Transferred to Statement o f Growers’ Residual Interests

15 1,182

2,726,627

563,090

The above Statement of Revenues and Expenses should be read in conjunction with the notes to and forming part of the financial statements.

34

STATEMENT OF GROWERS’ RESIDUAL INTERESTS

at 30 September 1985

1984 NOTE 1985

$000 $000 $000

355,511 Growers’ Residual Interests — 1 October Surplus Transferred from Statement of

279,224

297,956 Revenues and Expenses 563,090

653,467

Payments to Growers

842,314

243,005 Second and Subsequent Payments 80,339

21,812 Premium Wheat Growers 22,964

22,991 Refund of Wheat Export Levies 4 183,457

82,510 Pool Realisations 13 —

370,318 286,760

283,149 Transfer to Provision for Tasmanian

555,554

1,771 Freight Differential 14 131

(133) Transfer from Reserve Accounts 10 (1,914)

2,287 Transfer to Reserve Accounts G rowers’ Residual Interests — 10 4,173 2,390

279,224 30 Septem ber 553,164

The above Statement of Growers’ Residual Interests should be read in conjunction with the notes to and forming part of the financial statements.

STATEMENT OF ASSETS AND LIABILITIES

at 30 September 1985

1984 NOTE 1985

$000 $000 $000

Funds have been provided from: Growers’ Equity 279,224 Growers’ Residual Interests Reserves

553,164

1,914 Ceres House 10 —

826 Property and Assets 10 826

2,287 Ceres House Redevelopment 10 6,460

5,027 7,286

284,251 Total Equity and Reserves Current Liabilities

560,450

1,286,391 Borrowings 11 1,722,126

105,439 Creditors 12 65,489

1,637 Amounts Owing to Growers 23 543

4,776 Other 14 5,696

1,398,243 N on Current Liabilities

1,793,854

163 Provision for Long Service Leave 14 337

1,682,657 Total Funds Provided 2,354,641

These funds are represented by: N on Current Assets 5,458 Fixed Asets 15 14,757

265,481 Debtors 17 501,112

270,939 Current Assets

515,869

92,154 Cash and Short Term Deposits 16 111,634

322,987 Debtors 18 567,002

977,424 Wheat on Hand 19 1,131,487

19,153 Other 20 28,649

1,411,718 1,838,772

1,682,657 Total Assets Employed

C ontingent Liabilities 21

2,354,641

Contractual Liabilities 22

The above Statement of Assets and Liabilities should be read in conjunction with the notes to and forming part of the financial statements.

36

STATEMENT OF SOURCES AND APPLICATIONS OF FUNDS for the year ended 30 September 1985

1984 NOTE 1985

$000 $000

Sources o f Funds Funds from Operations*

2,831,233 Inflow from Operations 3,289,689

2,531,455 Less Outflow from Operations 2,723,761

299,778 565,928

- # Borrowings 2,577,911

1,000,186 Increase in — Current Liabilities (excluding provisions) — Reduction in — Current Assets

— Non Current Assets

1,813 Proceeds from Disposal of Fixed Assets 141

1,301,777 3,143,980

* Reconciliation of funds from operations with surplus from Statement of Revenues and Expenses.

299,778 Funds from operations Less

565,928

159 Net Loss on Sale of Fixed Assets 23

337 Depreciation/Amortization 1,182

303 Provision for Long Service Leave 414

781 Provision for Annual Leave 904

242 Provision for Pensions 315

297,956 Surplus Transferred to Statement of Growers’ Residual Interests 563,090

A pplications o f Funds 2,474 Acquisition of Fixed Assets 10,645

— Reduction in — Current Liabilities 40,952

(excluding provisions)

655,869 Increase in — Current Assets 427,054

272,416 — Non Current Assets 235,631

(excluding Fixed Assets)

370,318 Payments to Growers 286,760

602 Payments of Annual Leave 699

98 Payments of Long Service Leave 63

# Refinancing of Borrowings 2,142,176

1,301,777 3,143,980

# T h e fo rm a t o f th e S ta te m e n t o f S o u rce s a n d A p p lic a tio n s o f F u n d s h a s b e e n c h a n g e d from th a t u sed for th e 1 9 8 3 /8 4 a c c o u n ts , to c o m p ly w ith th e S ta te m e n t o f A c c o u n tin g S ta n d a rd — A A S 1 2 -- as a m e n d e d d u rin g M a rc h 1985. B orrow ings h a v e b e e n s h o w n sep a ra te fro m c u rre n t liabilities, as a source o f fu n d s, a n d re fin a n c in g o f b o rro w in g s, as a n a p p lic a tio n . C o m p a ra b le in fo rm a tio n is n o t available w ith resp ect to th e

1 9 8 3 /8 4 F in a n c ia l Year.

T h e a b o v e S ta te m e n t o f S o u rce s a n d A p p lic a tio n s o f F u n d s s h o u ld b e read in c o n ju n c tio n w ith th e n o te s to a n d fo rm in g p a rt o f th e fin a n c ia l s ta te m e n ts .

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 September 1985

The following notes have been prepared to help in the understanding of the financial statements. Amounts shown on the statements have been rounded to the nearer thousand dollars.

INDEX TO NOTES

A dm inistration expenses

N ote No.

9

A m ounts owing to growers 23

Borrowings 11

C ash and short term deposits 16

C ontingent liabilities 21

C ontractual liabilities 22

Creditors 12

C urrent assets — o ther 20

C urrent liabilities — other 14

Debtors — current 18

Debtors — non current 17

Direct expenses 6

Finance expenses 8

Fixed assets 15

Interest revenue 3

M arketing prom otion 7

Payments to growers — pool realisations 13

Refunds — wheat export levies 4

Revenue — other 5

Statem ent of principal accounting policies 1

Transfer to reserve accounts 10

W heat on hand 19

W heat sales 2

1. STATEMENT OF PRINCIPAL ACCOUNTING POLICIES The purpose of this statement is to disclose information relating to accounting policy and changes in accounting treatment, where such is material to the financial

statements. (a) A C C O U N T IN G BASIS The financial statements have been prepared on a ‘going concern’ basis using historical costs and accrual accounting. They do not purport to disclose current

values.

(b) FORMAT OF STATEMENTS The statements have been presented in a format consistent with the requirements of the Guidelines for the Form and Standard of Financial Statements of Commonwealth Undertakings, and take account of accounting standards jointly

promulgated by the Australian Society of Accountants and the Institute of Chartered Accountants in Australia. (c) DEPRECIATION A C C O U N T IN G The Board’s depreciation policy provides for expenditure of a capital nature

including leasehold improvements to be written-off over the life of the asset on a straight line basis. Depreciation is commenced in the month after the asset becomes available for use. The depreciation rate applied to leasehold improvements is based on the period of leasehold occupancy. Depreciation rates are reviewed annually. The policy of expensing assets costing $100 or less in the year of acquisition was changed, effective 1 October 1984, to cover items costing $1000 or less. This change has had no material effect on the financial statements. No adjustment was made in respect of fixed assets costing $1000 or less which were acquired before 1 October

1984. Each asset is being depreciated over its service life. (d) INTERNATIONAL TRANSACTIO NS i. Currency Translation The United States dollar is the principal currency in which wheat is priced and

traded. Forward exchange contracts are taken out to cover the conversion of off-shore borrowings to Australian dollars. These borrowings along with interest and other expenses incurred in United States dollars are met by sales

proceeds received in that currency. This process creates a natural hedge which effectively eliminates exposure to foreign currency exchange variations. Revenue, expenditure and balance sheet items have been translated to Australian dollars using the weighted average forward exchange contract rate. In the opinion of the Board this treatment is the most appropriate method and

recognises the existence of an effective natural hedge and does not distort the results presented in the financial statements. Translation of foreign currency assets and liabilities at the exchange rate ruling at balance date would result in purely notional exchange fluctuations being reported the value of which would

never be realised. ii. C om m odity Futures Grain futures transactions are entered into on a limited basis with a view to protecting the prices of certain export sales contracts.

Gains and losses realised on off-shore commodity futures transactions have been reported as wheat sales proceeds and translated at the weighted average forward exchange rate. Commodity futures contracts open at balance date have also been translated at the weighted average forward exchange rate.

(e) WHEAT ON H A N D The value of each category of wheat on hand at balance date from each season is the lower of cost or net realisable value. The Wheat Marketing Act 1984 (the Act) defines ‘season’ as the period of 12 months commencing on 1 July 1984 and each of the next 6 succeeding periods of 12 months. (f) PAYMENTS TO GROWERS

Apart from the interim advance payment and the final advance payment, there is no requirement for any further distributions to growers until such time as all of the wheat of that season has been sold, sales proceeds have been collected and expenses have been paid. However, subject to the availability of sales proceeds, further advances may be made on account of the final payment. These subsequent payments are treated as reductions in the Growers’ Residual Interests. (g) TAXATION

The AWB in accordance with section 54 of the Act is not subject to income tax, but is liable to other taxes in accordance with State and Federal legislation. Tax effect accounting is not, therefore, applicable. (h) PLANNING, RESEARCH A N D DEVELOPM ENT EXPENDITURE Planning, research and development expenditure incurred during the year has been charged against revenue. (i) EMPLOYEE BENEFITS In accordance with section 45(2) of the Act the terms and conditions of employment of officers are determined by the Board with the approval of the Public Service Board. (j) INTEREST REVENUE Monies surplus to immediate cash requirements are invested pending their distribution to growers. Such investments are made in accordance with guidelines approved by the Minister for Primary Industry. Interest revenue is reported as a separate revenue item. (k) EVENTS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR

i. At the date of this report, there does not exist any charge on assets securing the liability of any other person or organisation which has arisen since 30 September 1985. ii. No contingent or other liability has become enforceable or is likely to become

enforceable on or before 30 September 1986 which will or may substantially affect the ability of the AWB to meet its obligations as and when they fall due. iii. At the date of this report no circumstances have arisen which would render any amount stated in the financial statements misleading. (l) CHANGE IN ACC O U NTING POLICY

The value of commission payments made to various export buyers under various agreements has been treated as a reduction in sales revenue rather than as a marketing and promotion expense. The nature of these payments is related to the volume of business and is more in the form of a quantity allowance than a

commission on sale. Comparative figures for the year ended 30 September 1984 have been adjusted where necessary to conform with changes in presentation of financial statements with the exception noted on the Statement of Sources and Applications of Funds. (m) ACCRUED LIABILITIES

Where goods and services legally contracted for have been delivered or rendered to the AWB but not paid for at balance date, a legal liability for payment exists. Any such liability having a value of less than $5,000 has not been taken into account on the basis that the sum of such items would have no material effect on the financial

statements.

2. WHEAT SALES

1984 $000

1985 $000

322,772 Domestic 381,713

2,364,363 Export* 2,693,365

5,072 Western Australian Freight Differential 6,972

1,771 Tasmanian Freight Differential (Refer Note 14) 131

32,399 2,726,377 Premium Wheat 20,743

3,102,924

60,768 Less Allowances and Deductions 163,719

2,665,609 Total 2,939,205

*Realised gains and losses on commodity futures transactions are treated as part of export sales revenue. EXPORT Export sales are brought to account on the basis of the date of shipment. Although contracts are held for the long term supply of wheat only that portion of the contract

which has been shipped is brought to account as revenue. At 30 September 1985 forward sales contracts were held for 3,631,000 tonnes of wheat. In 1984 these totalled 4,002,000 tonnes. WESTERN AUSTRALIAN FREIGHT DIFFERENTIAL The differential between freight charges incurred on the export of wheat from Western

Australia compared to the rates applicable to other ports in Australia is payable to Western Australian growers with the realisation payment for each season. PREMIUM W H EA T Wheat sold of superior quality to the Australian Standard White (ASW) standard for wheat generally attracts a premium. The amount in the schedule above represents the

additional revenue received on the sale of premium wheat. TASM ANIA N FREIGHT DIFFERENTIAL All wheat sold on the domestic market in Australia has added to its price a surcharge to cover the cost of shipping wheat from Victorian ports to Tasmania. The amount of

this surcharge was $1.40 per tonne (1984: $4.57 per tonne on sales for human consumption purposes):

1984 1985

$000 $000

Total surcharge included in 4,354 Domestic Sales 3,290

2,583 Less costs of shipment of wheat to Tasmania 3,159

Surplus transferred to P rovision for 1,771 Tasmanian Freight D ifferential (Refer Note 14) 131

3. INTEREST REVENUE

1984 1985

$ 0 0 0___________ ___ _____________ _______________________$000

35,624 "Credit Sales ~ ' 8^569

20,490 Investments 25,199

2,560 Other 4,691

58,674 Total 117,459

4. REFUNDS - WHEAT EXPORT LEVIES

All monies standing to the credit of the wheat finance fund have been distributed to the growers and the fund is now closed in accordance with the statement by the Federal Treasurer in the 1984 budget speech.

5. REVENUE - OTHER

1984 1985

$000 ____ __ ____ __ ________ ____________________$000

100 Export Market Development Grant 100

64,681 Freight — Cost and Freight Sales 63,110

22 Profit on Sale of Fixed Assets 28

303 Sundry ■ 1 r 7,084

65,106 Total 70,322

6. DIRECT EXPENSES

1984 $000

1985 $000

GMP Advance to growers in respect 1,764,794 of Wheat Sold (net) 1,847,347

249,149 Freight 298,374

228,216 Handling and Storage 247,179

4,619 Wheat Tax 4,981

39,661 Wheat Levies 16,348

649 SA Wheat Tax 549

64,054 Shipping Costs 61,355

2,351,142 Total 2,476,133

Direct expenses include the Guaranteed Minimum Price (GMP) advance payments to growers, wheat levies, wheat taxes, storage and handling payments to Bulk Handling Authorities, freight and shipping costs. These expenses relate to wheat sold during the year and consequently, the GMP advance above does not equal the total advance payments to growers who delivered to the 1984/85 pool. The total gross GMP advances paid to growers of the 1984/85 season was $2,553,307,240. The GMP advances to growers in respect of wheat sold include a deduction from growers for Ceres House Redevelopment of $1,758,668 (1984: $2,106,000).

7. MARKETING PROMOTION

This item includes the cost of marketing and promoting the sale of wheat.

8. FINANCE EXPENSES 1984 1985

$000 $000

149,818 Interest 210,920

6,574 Insurance — Export Credit Sales 10,324

619 Other 2,206

157,011 Total 223,450

SCHEDULE OF INTEREST

1984 1985

$000 $000

149,008 Commercial Borrowings 209,760

810 Other 1,160

149,818 Total 210,920

9. ADMINISTRATION EXPENSES

1984 $000

1985 $000

414 Audit Fees 342

100 Bad Debts 70 Chairm ans Salary and Allowances* 82

128 Board Members Fees and Allowances* 143

(68) Doubtful Debts (Refer Note 18) 54

712 Leasing — Rental 1,157

181 Loss on Sale of Fixed Assets 51

10,016 Salaries and Staff Related Expenses excluding superannuation

12,947

1,009 Superannuation 1,270

4,257 Other 7,013

16,819 Total 23,059

* Entitlements of the Chairman and Board Members are determined by the Remuneration Tribunal in accordance with the Remuneration Tribunal Act 1973.

SU PE R A N N U A T IO N The liability for employee superannuation is met by way of payments to the Commonwealth Superannuation and Pension Scheme. Pensions are paid to retired staff by the Commonwealth. The AWB is still awaiting an acturial assessment by the Government Actuary the result of which is expected to indicate that the employers

required contribution is not sufficient to meet future pension payments. In anticipation of the result of the actuarial assessment, the AWB has since 1982 transferred additional sums to a provision for pensions account. The amount in 1984/85 was $315,000 (1984 $242,000). No provision has been made for any additional liability which might arise from increased pensions paid during the years 1973-1982 inclusive and an amount of $66,000 has been retained to offset the amount which may become payable in respect of those years (Refer Notes 14, 21).

10. TRANSFER TO RESERVE ACCOUNTS

PROPERTY A N D ASSETS RESERVE

1984 $000

1985 $000

959 Balance 1 October 826

(133) Appropriated to Growers’ Residual Interests ___—

826 Total 826

The Property and Assets Reserve was created to fund the acquisition of fixed assets. The appropriation to this reserve represents the surplus obtained on the disposal of nominated fixed assets less costs associated with the disposal of those assets.

CERES HOUSE - RESERVE

1984 1985

$000 $000

1,914 Balance — 1 October Transfer to Growers’ Residual Interests

1,914 (1,914)

1,914 Total ___—

The Ceres House Reserve was created at a time when the AWB did not have the power to create reserves and the legality of the reserve has been the subject of Audit concern for some time. The transfer of this reserve to Growers’ Residual Interests and the subsequent reappropriation of the sum involved to the Ceres House Redevelopment Reserve by a specific Board resolution dated 5 September 1985 resolves the Audit concern.

CERES HOUSE REDEVELOPMENT RESERVE

1984 1985

$000 $000

— Balance 1 October 2,287

2,287 Appropriated from Growers’ Residual Interests 4,173

2,287 Total 6,460

This reserve was created to fund the redevelopment of Ceres House. The amounts transferred to this reserve by resolution of the Board of the AWB represent: i. the amount deducted from the GMP Advance Payment to growers and accumulated interest on those deductions was $2,259 million.

ii. the reappropriation of funds from the Ceres House Reserve $1,914 million.

44

11. BORROWINGS

1 9 8 4 $ 0 0 0

1985 $ 0 0 0

26,623 1,259,768 1,286,391

Bank Loans and Advances Commercial Borrowings T otal

1,251

1,720,875 1,722,126

SCH EDULE OF COMMERCIAL BORROW INGS

1 9 8 4 1985

$ 0 0 0 $ 0 0 0

S e a so n

1,259,768 1983/84 448,177

1984/85 1,272,698

1,259,768 T otal 1,720,875

12. CREDITORS

This item represents amounts due to trade creditors excluding amounts owing to growers.

13. PAYMENTS TO GROWERS - POOL REALISATIONS

No pools were realised during the year, however, it is anticipated that the final pool return of 1982/83 season will be determined in the first half of 1986, thus enabling the pool to be realised.

14. CURRENT LIABILITIES - OTHER

1984 $000

1985 $000

1,091 Provisions for: Long Service Leave 1,268

927 Annual Leave 1,132

2,108 Tasmanian Freight Differential 2,239

546 Pensions 861

104 Unclaimed Monies 196

4,776 Total 5,696

SCHEDULE OF MOVEMENTS IN PROVISION ACCOUNTS

PROVISION FOR LONG SERVICE LEAVE

1984 $000

1985 $000

1,049 Balance — 1 October Add Amount transferred from Statement of

1,254

303 Revenues and Expenses 414

1,352

Less

1,668

98 Payments made during the year 63

1,254 Total 1,605

1,091 Payable within 12 months 1,268

163 Payable after 12 months* 337

1,254 Total 1,605

* Amounts payable after 12 months are treated as Non Current Liabilities in the Statement of Assets and Liabilities.

PROVISION FOR A N N U A L LEAVE

1984 1985

$000 $000

748 Balance — 1 October Add Amount transferred from Statement of

927

781 Revenues and Expenses 904

1,529

Less

1,831

602 Payments made during the year 699

927 Total 1,132

PROVISION FOR TASMANIAN FREIGHT DIFFERENTIAL

1984 1985

$000 $000

337 Balance — 1 October Transfer from Growers’ Residual Interests

2,108

L771 (Refer Note 2) 131

2,108 Total 2,239

PROVISION FOR PENSIONS

1984 1985

$000 $000

304 Balance 1 October 546

_242 Transfer from Statement of Revenues & Expenses 315

546 Total 861

15. FIXED ASSETS

1984 $000

1985 $000

___ 312

312

Land Cost Balance 30 September

__ 584 584

2,223 ___ 612

1,611

Buildings Cost Less Accumulated Depreciation

Balance 30 September

7,568 _ 643

6,925

4,491 1,214 3,277

Plant and Equipment, Furniture & Fittings Cost Less Accumulated Depreciation Balance 30 September

8,799 1,746 7,053

469

___211

__ 258

Leasehold Improvements Cost Less Accumulated Depreciation Balance 30 September

570 375 195

__M j8 Total 14,757

SCHEDULE OF MOVEMENTS IN PROVISIONS FOR DEPRECIATION/AMORTISATION

1984 $000

1985 $000

1,828 Balance 1 October 2,037

337 Depreciation/Amortisation charged for the period 1,182

(128) Transfer in respect of assets disposed (455)

of and/or scrapped during the period 2,037 Total 2,764

47

16. CASH AND SHORT TERM DEPOSITS

1984 1985

$000_ ___ _______ _______ ________ ___________ $000

3,412 Cash on Hand and at Banks 653

88,742 Short Term Advances and Deposits 110,981

92,154 Total 111,634

17. DEBTORS - NON CURRENT

1984 1985

$000 ____________ _______________________________________ $000

293,113 Debtors — Sales 568,758

Less interest due in respect of amounts 27,632 receivable after 30 September 67,646

265,481 Total 501,112

18. DEBTORS - CURRENT

1984 1985

$ 0 0 0 __ _ _ _ ___________ ___________$ 0 00 $000

367,237 D ebtors-S ales 646,761

46 Less — Provision for doubtful debts 100

— interest due in respect of amounts 44^204 receivable after 30 September 79,659 79,759

322,987 Total „ „ __ 567,002

PROVISION FOR D O UBTFUL DEBTS

1984 1985

$000 _ __ _ _ ______ _______ __________________ $000

114 Balance 1 October 46

(68) Add provided during the year (Refer Note 9) 54

46 Total .. 100

19. WHEAT ON HAND Wheat on hand has been valued at the lower of cost or net realisable value. Cost is the GMP or interim GMP payment for the relevant season, less provisional allowances deducted from that payment plus expenses incurred in relation to those provisional allowances. 8,456,081 tonnes of wheat was on hand at 30 September

1985. (1984: 7,517,850).

1984 $000

1985 $000

1,084,873 Guaranteed M inimum Price (GMP) Payments* Less D eductions from GMP

1,233,162

146,186 Freight 156,243

114,085 Handling and Storage 127,849

18,795 Wheat Levies 2,493

2,254 Wheat Tax 2,537

164 SA Wheat Tax 192

803,389 GM P Advance Add Expenses incurred relating to wheat on hand

943,848

37,188 Freight 51,922

115,634 Handling and Storage 130,495

18,795 Wheat Levies 2,493

164 SA Wheat Tax 192

2,254 Wheat Tax 2,537

977,424 Total 1,131,487

* Stock on hand is comprised of the various categories of wheat. The GMP valuation takes account of the quality adjustments and premiums appropriate to each of the categories.

20. CURRENT ASSETS - OTHER

1984 $000

1985 $000

19,083 Sundry Debtors 25,841

31 Prepayments 2,650

39 Deposits 158

19,153 Total 28,649

21. CONTINGENT LIABILITIES

SALARIES A N D SUPERANN UATIO N The AWB may become responsible to contribute additional amounts to the Commonwealth Superannuation and Pension Scheme arising from increased

pensions paid during the years 1973-1982 inclusive. The trustees of the fund have not provided the total liability pending completion of the actuarial assessments by the Government Actuary. A sum of $66,000 has been retained to offset the amount which may become payable in respect of the years 1973-1982.

s

LITIGATION CLAIMS - DEM URRAGE At 30 September 1985 several demurrage disputes were outstanding with various ship owners. No liability has been recognised in the accounts for any liability that may fall due in the event that legal actions against the AWB are successful. The total amount involved in these actions is not expected to exceed $193,000. (1984: $100,000).

CARRYOVER CLAIMS - BULK H A N D LIN G AUTHORITIES Unresolved claims with respect to carryover costs amount to $8,222,600 and are subject to further investigations.

LITIGATION CLAIMS - OTHER The liability of the AWB for sundry litigation claims is not expected to exceed $100,000. No liability has been recognised in the accounts for these claims (1984: $100,000).

22. CONTRACTUAL LIABILITIES

At 30 September 1985 the AWB had contracted for but not provided for in the financial statements: (i) Capital expenditure, hire and m aintenance com m itm ents $ Not later than one year 7,219,292

Later than one year and not later than two years 4,805,700

(ii) Lease agreements — rental Not later than one year 855,701

Later than one year and not later than two years 146,290

13,026,983

(1984: 11,868,324)

23. AMOUNTS OWING TO GROWERS

This item represents amounts due to growers for wheat delivered to the authorized receivers in respect of which the GMP advance or the interim advance had not been paid at balance date.

OFFICE OF THE AUDITOR-GENERAL

G.RO. Box 707 Canberra, A.C.T. 2601 Telephone 48 4711

4 December 1985

The Honourable the Minister for Primary Industry Parliament House CANBERRA ACT 2600

Dear Minister,

AUSTRALIAN W HEAT BOARD A U D IT REPORT O N FINANCIAL STATEMENTS

Pursuant to sub-section 63(2) of the Wheat Marketing Act 1984, the Australian Wheat Board has submitted for my report its financial statements for the year ended 30 September 1985. These comprise:

• Statement of Revenues and Expenses • Statement of Growers’ Residual Interests • Statement of Assets and Liabilities • Statement of Sources and Applications of Funds, and

• Notes to and forming part of the financial statements.

The statements have been prepared in accordance with the policies outlined in Note 1 to the Accounts, and in accordance with the Guidelines for the Form and Standard of Financial Statements of Commonwealth Undertakings approved by the Minister for Finance. The statements are in the form approved by the Minister for Finance pursuant to sub-section 63(1) of the Act. A copy of the financial statements is enclosed for your

information.

In accordance with sub-section 63(2) of the Act, I now report that the statements are in agreement with the accounts and records of the Board and, in my opinion:

(a) the statements are based on proper accounts and records (b) the statements show fairly the financial transactions and the state of the affairs of the Board, and (c) the receipt, expenditure and investment of moneys, and the acquisition and disposal of

assets, by the Board during the year have been in accordance with the Act.

Tours sincerely

J. V. Monaghan Auditor-General

A 1 APPENDIX 1*: A nnual Statistics

Due to am endments to the W heat M arketing Act, the AWB changed from a December-November to an October-Septem ber year in 1982-83. 1981-82 was a 10 m onth (December-September) transition period.

1. Area of Wheat. 2. Production of W heat. 3. W heat Yields. 4. W heat Receivals by the AWB.

5. Percentage of Receivals by Class. 6. Domestic Sales of Wheat. 7- Exports of Commercial and Food A id W heat and Flour. 8. Exports of Bulk and Bagged Wheat. 9. Exports of W heat by Class. 10. Exports of W heat and Flour by Primary Destination. 11. Long Term Agreements. 12. Export and Domestic W heat Prices. 13. Principal Growers’ Deductions for Handling, Storage and Freight. 14. Total Storage Capacity. 15. World W heat Production, Trade and Carryover Stocks.

APPENDIX 2*: Pool Statistics

A pool opens when receival of a new season’s wheat commences and remains open until all of that season’s wheat is physically disposed of and all monies collected.

1. Gross Realisations from Export Sales. 2. Pool Payments by State. 3. Principal Operating Charges. 4. Pool Payments and Dates of Payments.

* For earlier statistics refer to previous AWB A nnual Reports. All figures for 1984-85 are provisional.

APPENDIX 3: Australia’s W heat Classes

APPENDIX 1

TABLE 1 - AREA OF WHEAT

(000 Hectares)

Seasont New South Victoria South Western Queensland Tasmania Australia Wales! Australia Australia

1975-76 2,775 1,073 958 3,171 576 2 8,555

1976-77 3,116 1,103 839 3,314 582 2 8,956

1977-78 3,378 1,270 1,090 3,609 607 1 9,955

1978-79 3,162 1,337 1,295 3,706 747 1 10,249

1979-80 3,416 1,457 1,424 4,121 733 2 11,153

1980-81 3,345 1,431 1,445 4,333 727 2 11,283

1981-82 3,600 1,322 1,427 4,593 941 1 11,885

1982-83 3,162 1,327 1,398 4,865 767 1 11,520

1983-84 4,030 1,624 1,576 4,781 1,012 2 13,025

1984-85 3,581 1,534 1,385 4,677 926 2 12,105

Ten Season Average 3,357 1,348 1,284 4,117 762 2 10,869

Source: Australian Bureau of Statistics. t 1 October to 30 September.

! Including ACT.

TABLE 2 - PRODUCTION OF WHEAT

(000 Tonnes)

Season! New South Victoria South Western Queensland Tasmania Australia Wales! Australia Australia

1975-76 4,310 1,579 1,139 4,122 830 2 11,982

1976-77 5,142 1,789 832 3,249 794 4 11,800

1977-78 3,846 1,497 511 2,945 569 2 9,370

1978-79 6,640 2,998 2,086 4,400 1,962 3 18,090

1979-80 6,001 3,250 2,349 3,739 846 4 16,188

1980-81 2,865 2,538 1,650 3,315 485 3 10,856

1981-82 5,910 2,467 1,695 4,803 1,482 3 16,360

1982-83 1,500 394 692 5,534 755 1 8,876

1983-84 8,961 3,971 2,843 4,316 1,922 3 22,016

1984-85 5,601 2,660 1,906 6,580 1,540 4 18,291

Ten Season Average 5,078 2,314 1,570 4,300 1,119 3 14,383

Source: Australian Bureau of Statistics, t 1 October to 30 September. ! Including ACT.

TABLE 3 - WHEAT YIELDS

(Tonnes per Hectare)

Season! New South Wales! Victoria South Australia

Western Queensland Tasmania Australia Australia

1975-76 1.55 1.47 1.19 1.30 1.44 1.05 1.40

1976-77 1.65 1.67 0.99 0.98 1.37 1.98 1.32

1977-78 1.14 1.18 0.47 0.82 0.94 1.23 0.94

1978-79 2.10 2.24 1.61 1.19 2.63 2.10 1.77

1979-80 1.76 2.23 1.65 0.91 1.15 1.88 1.45

1980-81 0.86 1.77 1.14 0.77 0.67 1.50 0.96

1981-82 1.64 1.87 1.19 1.05 1.57 2.00 1.38

1982-83 0.47 0.30 0.49 1.14 0.98 1.00 0.77

1983-84 2.24 2.46 1.82 0.91 1.91 2.00 1.70

1984-85 1.58 1.74 1.39 1.42 1.68 1.70 1.52

Ten Season Average 1.50 1.69 1.19 1.05 1.43 1.64 1.32

Source: Australian Bureau of Statistics, t 1 October to 30 September. ! Including ACT.

AUSTRALIAN WHEAT YELDS (Tonnes per Hectare)

1.77

1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85

TABLE 4 - WHEAT RECEIVALS BY THE AWBt (000 T o n n e s )

Season^ New South Victoria§ South Western Queensland Tasmania Australia Wales* Australia Australia

1975-76 3,907 1,615 1,041 3,897 798 1 11,258

1976-77 4,619 1,784 725 3,052 752 2 10,933

1977-78 3,309 1,535 417 2,747 532 1 8,540

1978-79 5,909 3,464 1,976 4,174 1,932 1 17,457

1979-80 5,052 3,721 2,232 3,518 803 2 15,328

1980-81 2,157 2,853 1,533 3,087 428 1 10,059

1981-82 5,281 2,733 1,581 4,523 1,428 1 15,547

1982-83 1,029 335 588 5,220 758 1 7,931

1983-84 8,049 4,482 2,716 3,985 1,833 2 21,067

1984-85 4,971 2,927 1,921 6,297 1,427 1 17,544

Ten Season Average 4,428 2,545 1,473 4,050 1,069 1 13,566

Source: A u stralian W h ea t Board. t T h e q u a n tity o f w h e at delivered to, a n d accepted by, th e A u th o rised Receivers o f th e AWB. φ 1 O c to b er to 30 Septem ber.

* Including A CT.

§ T h e V ic to rian receivals include w heat grow n in N ew S o u th Wales, b u t delivered to the G ra in Elevators B oard o f V ictoria.

WHEAT RECEIVALS BY THE AWB. (000 Tonnes)

21,067

17,457 17,544

15,328 15,547

11,258 10,933

10,059

8,540

7,931

1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85

TABLE 5 - PERCENTAGE OF RECEIVALS BY CLASS

Ten

Season! 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 Season ___________________________________________________________________________ ____________ Average

STATE New South Walesi APH (a) AH (b) ASW(c) AGP (d)

19.5 29.5 36.7 14.3

19.4 30.9 38.8 11.0

28.6 33.5 32.9 5.0

10.8 27.5 46.1

15.6

10.3 35.2 48.6 5.9

12.9 19.5 64.3 2.9

10.9 35.0 48.4 5.7

28.6 25.8 43.1 2.5

8.2 21.1 28.4 42.3

20.4 18.5 57.0 4.1

17.0 27.7 44.4 10.9

Victoria AH 0.1 0.3 4.3 1.1 3.1 4.1 5.2 5.2 2.3 5.6 3.1

ASW 63.7 97.8 92.9 94.6 93.7 94.1 94.0 93.2 76.7 93.6 89.4

AGP 36.2 1.9 2.8 4.3 3.2 1.8 0.8 1.6 21.0 0.8 7.5

South Australia AH 26.2 39.9 24.8 18.7 12.8 24.8 28.6 40.1 13.7 22.2 25.2

ASW 66.7 58.7 73.0 79.4 82.1 71.6 70.1 58.4 80.4 74.5 71.5

AGP 7.1 1.4 2.2 1.9 5.1 3.4 1.3 1.5 5.9 3.3 3.3

Western Australia AH 1.0 0.9 2.2 2.6 2.3 10.8 6.9 8.7 2.5 3.2 4.1

ASW 93.9 94.2 88.5 94.7 93.8 83.4 91.4 87.0 63.7 95.4 88.6

AGP 5.1 4.9 9.3 2.7 3.9 5.9 1.7 4.3 39.8 1.4 7.3

Queensland APH 20.4 7.1 49.5 6.0 25.2 24.1 43.4 70.0 39.6 7.5 29.3

AH 43.2 35.5 24.9 29.9 26.0 48.0 24.1 16.7 17.8 39.4 30.5

ASW 20.4 29.1 21.3 28.8 38.5 13.6 14.5 8.5 22.1 41.0 23.8

AGP 16.0 28.3 4.3 35.3 10.3 14.3 18.0 4.8 20.5 12.1 16.4

Tasmania ASW 68.0 80.0 87.0 100.0 42.0 84.0 50.2 100.0 72.1 70.0 75.3

AGP 32.0 20.0 13.0 - 58.0 16.0 49.8 - 27.9 30.0 24.7

Australia APH 8.2 8.7 14.2 4.3 4.7 3.8 7.7 10.1 6.6 6.4 7.5

AH 16.2 18.4 17.2 15.6 16.1 14.5 19.9 13.8 12.4 13.0 15.7

ASW 61.9 64.5 62.8 69.2 74.3 77.6 68.1 72.3 51.5 77.5 68.0

AGP 13.7 8.4 5.8 10.9 4.9 4.1 4.3 3.8 29.5 3.1 8.8

Source: Australian Wheat Board, t 1 October to 30 September. $ Includes ACT.

(a) Australian Prime Hard wheat. (b) Australian Hard wheat. (c) Australian Standard White, including Australian Durum and Soft wheat. (d) Australian General Purpose, including Australian Feed wheat.

TABLE 6 - DOMESTIC SALES OF WHEAT (000 T o n n e s )

Yeari Human Consumption* Industrial Stockfeed# Total

1975-76 1,344 2,648 1,992

1976-77 1,288 408 1,696

1977-78 1,297 453 1,750

1978-79 1,342 624 1,966

1979-80 1,105 248 1,075 2,428

1980-81 1,108 268 1,179 2,555

1981-82 (i) 867 248 590 1,705

1982-83 (ii) 1,303 311 1,503 3,117

1983-84 (ii) 986 340 301 1,627

1984-85 (ii) 1,168 336 295 1,799

By Statef New South Wales 674 155 829

Victoria 321 57 378

South Australia 122 22 144

Queensland 219 24 243

Western Australia ) 15

) 168 205

Tasmania ) 22

Source: A u stralian W h eat Board. (i) 1 D ecem ber 1981 to 30 Septem ber 1982.

φ 1 D ecem ber to 30 N ovem ber. (ii) 1 O c to b er to 30 Septem ber.

* Includes b reakfast foods. t Separate records o f S ta te sales o f h u m an

$ Separate records o f sales o f w h e at for c o n su m p tio n w h e at a n d in d u stria l

in d u stria l use were n o t k ept p rio r w h e at are n o t available for publication.

to 1979-80.

# Includes insurance w heat, seed and

sundries.

3,117

DOMESTIC SALES OF WHEAT | (000 Tonnes) |

™e le e l™l l l l ™ l l l — l , l ^ ^ e l l e e ™ 2,555

2,428 —

!·992 1,966

1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85

TABLE 7 - EXPORTS OF COMMERCIAL AND FOOD AID WHEAT AND FLOUR (000 Tonnes)

Y e a r t C o m m e r c ia l F o o d A id C o m m e r c ia l F o o d A id T otal

W h e a t W h e a t F lo u r t F lo u r t

1975-76 7,808 154 256 15 8,233

1976-77 9,355 147 224 37 9,763

1977-78 7,726 192 129 51 8,098

1978-79 11,199 327 134 33 11,693

1979-80 12,828 221 124 24 13,197

1980-81 9,123 328 110 53 9,614

1981-82 (i) 10,445 445 118 60 11,068

1982-83 (ii) 7,057 100 73 50 7,280

1983-84(11) 13,741 328 49 34 14,152

1984-85 (ii) 14,263 307 84 25 14,679

Source: A u stra lia n W h ea t Board.

1 D ecem ber to 30 N ovem ber.

:· W h ea t equivalent. C o n v ersio n factor ( 4 · 1.29) p rio r to 1984-85; in 1984-85 it was (4-1.27). W heat products are included in com m ercial flour.

(i) 1 D ecem ber 1981 to 30 S e p te m b e r 1982.

(n) 1 O c to b e r to 30 S eptem ber.

TABLES- EXPORTS OF BULK AND BAGGED WHEAI S ta te N u m b e r S h ip m e n ts T o ta l T o ta l T o ta l

a n d o f a s % o f B u lk W h e a t B a g g e d W h e a t W h e a t

P o rt V e s s e ls ! A v a ila b ility * S h ip m e n t s S h ip m e n ts S h ip m e n ts

(000 T) (000 T) (000 T)

Q u e e n s la n d 7 0 6 7 1 ,0 9 4 .7 0 .1 1 ,0 9 4 .8

G l a d s t o n e 11 127.4 127.4

B r is b a n e 59 967.3 967.4

N e w S o u th W a le s 1 4 9 5 8 4 ,4 6 7 .4 0 .1 4 ,4 6 7 .5

N e w c a s tle 80 2,168.3 2,168.3

S y d n e y 69 2,299.1 2,299.1

V ic t o r ia 1 3 3 7 4 2 ,9 5 7 .4 1.0 2 ,9 5 8 .4

G e e lo n g 72 1,843.1 1.0 1,844.1

P o r tla n d 61 1,114.3 - 1,114.3

S o u th A u str a lia 1 0 8 71 1 ,4 5 2 .8 2 2 6 .8 1 ,6 7 9 .6

A d e la id e 23 331.3 123.4 454.7

A r d r o s s a n 5 74.4 - 74.4

P o r t G ile s 1 9.1 - 9.1

P o r t L i n c o ln 31 456.3 27.7 484.0

P o r t P irie 24 282.4 - 282.4

T h e v e n a r d 15 178.2 - 178.2

W a lla ro o 9 121.1 75.7 196.8

W e s te r n A u str a lia 2 2 5 6 9 4 ,3 6 9 .3 0 .1 4 ,3 6 9 .4

A lb a n y 47 915.6 - 915.6

B u n b u r y 5 57.3 - 57.3

E s p e r a n c e 23 443.2 - 443.2

G e r a l d t o n 55 946.7 - 946.7

F r e m a n tle 95 2,006.5 0.1 2,006.6

T o ta l 6 8 5 6 6 1 4 ,3 4 1 .6 2 2 8 .1 1 4 ,5 6 9 .7

Source: A u stra lia n W h ea t Board.

1 O c to b e r 1984 to 30 S eptem ber 1985.

:: Includes tw o p o rt loadings; applies o nly to b u lk w h e at shipm ents.

: Includes carryover stocks from 1983-84.

TABLE 9 - EXPORTS OF WHEAT BY CLASS!

(000 T o n n e s )

S tate N ew S o u th

W ales

V ic to ria S o u th

A u stra lia

W e s te rn A u stra lia

Q u e e n s la n d A ustralia

C lass:

A u stra lia n P rim e H a rd Y eart:

1975-76 321 359 680

1976-77 926 - _ 7 933

1977-78 912 - - 256 1,168

1978-79 375 - - 77 452

1979-80 397 - 160 557

1980-81 296 - - 111 407

1981-82 (i) 371 - - 478 849

1982-83 (ii) 290 - _ 471 761

1983-84 (ii) 332 - _ 348 679

1984-85 (ii) 703 - - - 170 873

A u stra lia n H a rd 1975-76 837 181 24 118 1,160

1976-77 717 - 245 4 208 1,174

1977-78 825 32 105 44 11 1,017

1978-79 398 - 225 183 431 1,237

1979-80 1,090 43 253 58 95 1,539

1980-81 270 - 323 308 9 910

1981-82 (i) 1,147 34 393 343 68 1,985

1982-83 (ii) 306 1 219 368 73 967

1983-84 (ii) 1,071 - 300 210 474 2,055

1984-85 (ii) 490 40 391 135 470 1,526

A u stra lia n S ta n d a rd W h ite (a) 1975-76 815 916 492 3,303 77 5,603

1976-77 1,795 1,371 317 2,940 102 6,525

1977-78 972 1,424 320 2,729 96 5,541

1978-79 1,221 2,703 1,477 3,265 451 9,117

1979-80 1,926 3,359 1,709 3,179 229 10,402

1980-81 1,842 2,429 1,098 2,552 17 7,938

1981-82 (i) 1,318 2,262 926 3,351 114 7,971

1982-83 (ii) 225 203 239 4,506 54 5,227

1983-84 (ii) 1,228 2,503 1,790 2,924 332 8,778

1984-85 (ii) 1,636 2,420 1,288 3,920 336 9,600

A u stra lia n G e n e ra l P u rp o s e (b) 1975-76 95 269 74 56 25 519

1976-77 277 274 15 133 171 870

1977-78 46 15 5 124 2 192

1978-79 287 - - 103 330 720

1979-80 129 - 30 89 303 551

1980-81 7 9 - 180 - 196

1981-82 (i) 12 1 - 19 53 85

1982-83 (ii) - - - 133 69 202

1983-84 (ii) 789 313 46 1,198 210 2,557

1984-85 (ii) 1,639 498 - 316 118 2.571

S ource: A u s tra lia n W h e a t B oard, t E x cludes flo u r a n d w h e a t p ro d u c ts.

+ 1 D e c e m b e r to 30 N o v em b er.

(i) 1 D e c e m b e r 1981 to 30 S e p te m b e r 1982.

(ii) 1 O c to b e r to 30 S e p te m b e r.

(a) A u stra lia n S ta n d a rd W h ite , in c lu d in g A u s tra lia n D u ru m a n d S o ft w heat.

(b) A u stra lia n G e n e ra l P u rp o se , in c lu d in g A u stra lia n Feed w h e at.

TABLE 10 - EXPORTS OF WHEAT AND FLOUR BY PRIMARY DESTINATION*

(T o n n es)

W h e a t F lour#

Y eart 1 9 8 2 -8 3 1 9 8 3 -8 4 198 4 -8 5 1 9 8 2 -8 3 1 9 8 3 -8 4 1 9 8 4 -8 5

P rim a ry D e stin a tio n : A b u D h a b i 81,055 74,705 130,070

B ahrain 36,199 42,411 46,356 - - -

B angladesh - 645,685 126,267 - - -

B urm a - - - 9,417 5,650 -

C h ile 31,500 - - - - -

C h in a 759,484 2,215,556 1,365,324 12,544 - -

D ubai 67,419 93,748 109,243 62 119 76

Egypt 1,507,121 1,904,069 2,430,354 - - -

E thiopia - 17,000 97,692 - - 2,434

Fiji 54,983 57,879 61,118 179 1,295 -

G e rm a n y East - 35,750 - - - -

G h a n a - - - - 5,160 -

G reece - - - 130 23 23

H o llan d 34 37 - - - -

H o n g K ong 297 - - 788 1,205 1,377

Indonesia 316,912 439,841 553,601 126 129 107

Iran 570,870 1,873,425 1,368,447 - - -

Iraq 555,561 959,853 1,170,249 - - -

Japan 933,380 1,070,054 1,100,450 88 117 140

Jo rd a n - 26,250 65,810 - - -

Kenya - 10,000 129,659 18,834 - -

Korea PD R - 21,000 12,600 - - -

Korea, Rep. o f - 520,720 1,023,740 - - -

K uw ait 233,068 143,243 194,039 - - -

M adagascar 5,000 3,000 3,000 - - -

M alaysia 296,595 465,655 314,128 - - -

M auritius 18 93 63 22,144 13,902 16,868

M exico - 216,463 320,538 - - -

M orrocco - - - - 7,727 -

N epal - 868 - 356 529 2,540

N ew Zealand 81,393 115,445 63,375 209 1,086 800

N orw ay - - 61 - - -

O m a n 81,134 80,819 92,429 - - -

Pacific Islands (NES) 1,516 4,999 2,632 34,251 34,357 29,947

P akistan - 25,000 947,854 - - -

P apua N ew G u in e a 52,978 51,349 67,819 243 - -

PD R Yemen 100,185 167,338 222,816 3 4,631 -

Philippines 13,826 - - 10,547 1,929 6,661

Q a ta r 28,350 28,350 26,245 - - -

Saudi A rab ia 72,879 72,107 - - 31 -

Seychelle Islands - - 364 44 -

S ingapore 64,302 79,700 116,947 49 38 46

Som alia 1,015 1,000 3,955 3,870 7,262

S o u th A frica 313,381 95,958 30 - 164

Sri L anka 31,000 55,190 208,474 487 477 15

Sw itzerland - 19 - - - -

Syria - 24,550 - - - -

Tanzania - 28,000 - - - 8,390

I h ailan d 42,800 57,773 39,787 278 606 552

U g a n d a - 10,000 - - - . -

U n ite d K ingdom - 117 236 - - -

U S S R 1,003,824 1,804,583 1,783,917 - - . -

West Indies - - - - - 40

Yemen A R 84,231 292,982 267,402 - - "

Z am bia 23,168 10,000 4,000 - - -

Zim babw e 26,250 9,000 6,000 - - -

S h ip ’s Stores - - 79 - -

Total 7 , 157,332 14 ,069,022 14 ,569,700 115,163 82,925 77,442

Source: A u stra lia n W h ea t Board. t: C om m ercial an d fo o d aid shipm ents.

1 O c to b e r to 30 Septem ber. _

# W h ea t equivalent. C o n v ersio n factor ( 4 - 1.29) p rio r to 1984-85; in 1984-85 it was (-5- 1.27). F lour includes sh arp s, sem olina a n d m eal b u t excludes w h e at p roducts.

TABLE 11 - LONG TERM AGREEMENTS

(As at 30 September 1985)

Country Annual Quantity

Abu Dhabi Minimum 70,000 tonnes

Egypt Minimum 1.5 million tonnes

(Minimum 10 million tonnes over 5 years)

Iraq Minimum 800,000 tonnes

(Minimum 6 million tonnes over 5 years)

Supply Period Jan. 1985-D ec. 1987

Jan. 1985 - Dec. 1989

Jan. 1986 - Dec. 1990

Source: Australian Wheat Board.

TABLE 12 - EXPORT AND DOMESTIC WHEAT PRICES

($/Tonne)

Yeart Export!

(FOB)

Human Consumption* (FOR)

Stockfeed* (FOR) Industrial (FOR)

1975-76 106.39 99.32 -

1976-77 96.54 105.40 -

1977-78 116.48 111.16 -

1978-79 137.63 116.61 -

1979-80 153.18 130.78 140.50 133.08

1980-81 152.03 156.12 151.37 151.67

1981-82 (i) 152.50 187.20 149.78 151.15

1982-83 (ii) 179.92 203.46 184.11 174.16

1983-84 (ii) 152.50# 219.41 175.24 170.34

1984-85 (ii) 145.32# 210.73 204.36 199.09

Source: Australian Wheat Board, t 1 December to 30 November, t Simple averages of daily asking prices for ASW.

* Prior to 1978-79 the Human Consumption Price and stockfeed price were equal. The 1979 Wheat Marketing Act separated the two prices from 1979-80. The Tasmanian shipping levy is included in the combined price prior to 1979-80. Since 1979-80 the Tasmanian shipping levy has been included only in the Human Consumption Price. # From early December 1983 prices have been quoted in US$. (i) 1 December 1981 to 30 September 1982. (ii) 1 October to 30 September.

TABLE 13 - PRINCIPAL GROWERS’ DEDUCTIONS FOR HANDLING, STORAGE AND FREIGHT ($/Tonne)

Season Deduction NSW* Vic* SA WA Old Tas Australia!

1979-80 Handling & Storage 12.00 7.00 7.00 11.90 10.50 10.24 9.96

Freight^: 15.71 12.38 5.09 9.23 11.98 - 11.67

Total 27.71 19.38 12.09 21.13 22.48 10.24 21.63

1980-81 Handling & Storage 12.00 8.00 10.00 12.63 16.00 11.23 10.92 Freight!: 15.86 14.08 5.62 9.31 11.90 - 11.62

Total 27.86 22.08 15.62 21.94 27.90 11.23 22.54

1981-82 Handling & Storage 14.40 10.35 11.35 11.67 16.00 12.44 12.73 Freight!: 19.38 16.21 6.27 12.18 12.87 - 14.80

Total 33.78 26.56 17.62 23.85 28.87 12.44 27.53

1982-83 Handling &t Storage 14.90 12.00 11.95 12.00 16.50 13.07 12.77 Freight!: 19.94 17.21 5.02 13.51 13.08 - 13.83

Total 34.84 29.21 16.97 25.51 29.58 13.07 26.60

1983-84 Handling & Storage 16.50 12.95 12.43 12.43 21.00 14.58 14.73 Freight!: 22.05 19.98 6.87 14.32 14.87 - 17.56

Total 38.55 32.93 19.30 26.75 35.87 14.58 32.29

1984-85 Handling & Storage 17.20 13.75 12.74 13.05 20.00 15.00 15.29 Freight!: 23.63 20.09 6.50 14.79 16.20 - 17.39

Total 40.83 33.84 19.24 27.84 36.20 15.00 32.68

Source: Australian Wheat Board. Calculated for indicative purposes only. Freight figures shown for each State have been calculated by dividing the total dollar amount deducted from growers for freight by the wheat receivals in the State system for the season. The principal deductions shown for NSW and Victoria are the standard charge deducted from growers at receival sites. In both States, growers are offered discounts to encourage deliveries at a particular site or during a specified period.

TABLE 14 - TOTAL STORAGE CAPACITY!

(000 Tonnes)

State Country Storages Seaboard Storages Total

New South Wales 5,900 309 6,209

Victoria 3,137 1,101 4,238

South Australia 2,362 1,842 4,204

Western Australia 5,576 1,915 7,491

Queensland 1,586 266 1,852

Tasmania 11 20 31

Total 18,572 5,453 24,025

Source: Australian Wheat Board. At 30 September 1985; excludes bunker and open bulkhead stores.

TABLE 15 - WORLD WHEAT PRODUCTION, TRADE AND CARRYOVER STOCKSt

(m. tonnes)

1981-82 1982-83 1983-84 1984-85(p) 1985-86(e)

1. PRODUCTION Producers (major) China 59.6 68.4 81.4 87.8 88.0

EEC-10 54.3 59.9 59.4 76.3 68.0

USSR 80.0 85.0 80.0 75.0 86.0

USA 76.2 75.3 65.9 70.6 65.3

India 36.3 37.5 42.8 45.1 46.0

E. Europe 26.3 29.4 29.9 34.8 32.0

Canada 24.8 26.8 26.6 21.2 21.6

Australia 16.4 8.9 21.9 18.6 16.3

Turkey 17.0 17.5 16.4 17.2 16.6

Argentina 8.3 15.0 12.3 13.2 11.5

Others 54.1 58.4 59.5 61.2 64.1

Total 453.3 482.1 496.1 521.0 517.0

2. TRADE (a) Net Exporters (major) USA 49.3 39.3 38.3 37.1 29.5

Canada 17.8 21.1 21.2 19.2 16.0

EEC-10 14.0 14.1 15.0 16.7 15.5

Australia 11.4 8.5 11.6 15.1 15.0

Argentina 4.3 7.5 9.6 7.9 8.0

(b) Net Importers (major) USSR 20.0 20.1 19.7 25.3 19.0

China 13.2 13.0 9.8 7.4 7.0

Egypt 6.1 6.2 7.3 6.2 7.0

Japan 5.6 5.6 5.9 5.8 5.9

Brazil 4.6 3.9 4.3 4.9 3.4

3. TOTAL GROSS EXPORTS 100.7 96.1 98.0 103.5 92.0

4. STOCKS (CARRYOVER) OF MAJOR NET EXPORTERS 54.2 65.6 64.0 72.0 75.8

Source: International Wheat Council. t July-June years. Includes flour and durum wheat. Countries are listed in order of magnitude as producers, exporters and importers in 1984-85. Calculated at 22/10/85. (p) Preliminary. (e) Estimated.

APPENDIX 2

TABLE 1 - POOL PAYMENTS & DATES OF PAYMENT!

($/Tonne)

79-80 Pool 80-81 Pool 81-82 Pool 82-83 Pool 83-84 Pool 84-85 Pool GMP 30/11/79 30/11/80 1/12/81 1/12/82 1/10/83 1/10/84

114.71 131.92 141.55 141.32 150.00 145.35

Subsequent Payments First 7/10/81 25/1/83 16/4/84 18/1/84

10.00 4.50 6.00 4.00

Second 15/12/81 31/3/83 7/6/84 30/3/84

10.00 2.50 2.37 2.50

Third 15/3/82 16/6/83 18/5/84

7.25 2.50 5.00

Fourth 28/7/82 27/9/83 10/7/84

6.50 2.50 5.00

Fifth 21/10/82 16/4/84 28/9/84

2.50 3.50 2.50

Sixth 26/1/83 29/3/85

2.50 2.50

Seventh 31/8/83 17/9/85

1.09 7.50

Pool Payments to Date* (a) 154.55 147.42 149.92 170.32 150.00 145.35

(b) 155.52 148.56 151.44 170.32 150.00 145.35

Refunds -Wheat Export 31/8/83 30/1/85 23/11/84 24/7/85 24/7/85

Charges^ 1.50 3.90 1.30 2.99 2.74

30/4/84 27/7/85

1.50 1.99

16/11/84 0.76

Source: Australian Wheat Board. t ASW basis; prior to deductions for bulk handling, freight, dockages, wheat tax and wheat levies. Wheat levies ceased after 1983-84. Payments for pools 1982-83, 1983-84 and 1984-85 not finalised at 30 September

1985.

t Refunds - Wheat Export Charges for all pools finalised at 30 September 1985. (a) All States except Western Australia. (b) Western Australia (This difference reflects a WA freight advantage to certain markets).

TABLE 2 - POOL PAYMENTS BY STATE*

N S W V ic SA W A Q ld Tas

T onnes (000) 4,971 2,927 1,921 6,297 1,427 1

$ $ $ $ $ $

A SW U M P / to n n e 145.35 145.35 145.35 145.35 145.35 145.35

Less d e d u ctio n for freight (Av) 23.63 20.09 6.50 14.79 16.20 —

B H A C harges 17.08 13.51 12.74 13.05 20.00 15.00

C eres H ouse .10 .10 .10 .10 .10 .10

W h eat Tax .30 .30 .60 .30 .30 .30

Total 41.11 3 4 .0 0 19.94 2 8 .2 4 3 6 .6 0 15.40

Av. N e t G M P 104.24 111.35 125.41 117.11 108.75 129.95

Source: A ustralian W h ea t Board, t A t 30 S eptem ber 1985.

TABLE 3 - GROSS REALISATIONS FROM EXPORT SALES*

P ool E xport

Sales (000 T)

R eceipts P er T onne ($/T )

1975-76 9,236 110.13

1976-77 9,224 92.32

1977-78 6,768 103.22

1978-79 15,423 133.63

1979-80 12,851 161.97

1980-81 7,216 154.53

1981-82 11,876 157.65

1982-83 6,464 179.20

1983-84 (i) 17,837 163.23

1984-85 (i) 9,158 182.65

Source: A ustralian W h ea t Board. t A S W basis; includes w heat, flour a n d w h eat products.

(i) Incom plete, d u e to n o n -fin alisatio n o f pools as at 30 S eptem ber 1985.

TABLE 4 - PRINCIPAL OPERATING COSTS Pool Receivals Handling & Freight to FOR Interest & AWB Marketing

Storage Position Natural Bank Charges Administration &

Costs Terminal Ports & Depreciation Promotion

000 T $000 $000 $ / T $000 $ / T $000 $ / T $000 $ /T

1976-77 10,933 85,362 111,587 10.20 52,570 4.81 5,738 .52 1,144 .10

1977-78 8,540 93,008 91,198 10.68 29,148 3.42 4,399 .52 1,169 .14

1978-79 17,457 184,295 199,671 11.44 64,955 3.72 5,123 .29 1,675 .10

1979-80 15,327 158,624 183,174 11.95 100,917 6.58 8,100 .53 840 .05

1980-81 10,058 109,218 116,319 11.56 98,680 9.81 10,441 1.04 2,059 .20

1981-82 15,547 199,570 232,090 14.93 189,247 12.17 11,047 .71 2,747 .18

1982-83 7,931 102,321 110,207 13.90 54,904 6.92 14,544 1.83 2,891 .36

1983-84 (i) 21,067 325,513 361,790 17.17 219,876 10.44 17,156 .81 3,443 .16

1984-85 (i) 17,544 249,727 191,238 10.90 141,257 8.05 24,241 1.38 2,803 .16

Source: A ustralian W h ea t Board. (i) Incom plete, d u e to non-finalisation o f pools a n d non-availability o f charges, a t 30 Septem ber 1985.

APPENDIX 3

AUSTRALIA’S WHEAT CLASSES

Australian Wheat is marketed in seven general classes:

Australian Prime Hard A high quality class of wheat comprising selected hard grained wheat varieties with excellent milling characteristics and well balanced dough properties. This class is marketed at guaranteed minimum protein levels of 13%, 14% and 15%. Major uses

are for blending with lower protein wheats and for the production of high protein breads and noodles.

Australian Hard Wheat in this class contains specified hard grained varieties of proven bread making quality. It is marketed at guaranteed minimum protein levels of 11.5%, 12%, 13% and 14%. This wheat is used for the production of a wide range of volume

breads, Middle Eastern style flat breads and Chinese style noodles.

Australian Standard W hite This is a multi-purpose class of wheat of intermediate grain hardness with protein levels in the range of 9% to 11.5%. Australian Standard White (ASW) is suitable for a wide variety of flour products including European style loaf breads, Middle Eastern and Indian style flat breads, steamed bread and most types of noodles.

Australian Soft Australian Soft consists of low protein wheat of specified soft grained varieties, and is segregated in the southern part of Western Australia, Victoria and New South Wales. Australian Soft is suited to the production of sweet biscuits, cakes and pastry goods.

Australian General Purpose and Australian Feed These two wheat classes relate to wheat of the same varieties as the above classes but which fail to conform to the receival standards of any of the above classes,

usually in terms of test weight, weather damage, unmillable material or contamination with foreign matter or seeds. Depending on the degree of weather damage and the test weight, some General Purpose wheat may be suitable for

milling purposes. Severely sprouted wheat is marketed as Australian Feed wheat.

Australian Durum Wheat received into this class is limited to durum wheat varieties. Australian Durum is suited to the production of semolina for pasta products.

AUSTRALIAN WHEAT

C L A S S G R A D E

PR IM E H A R D

15% PR O T E IN 14% PR O T E IN 13% PR O T E IN

H A R D

14% PR O T E IN 13% PR O T E IN 12% PR O T E IN 11.5% PR O TE IN

N o 1 N o 2* N o 3*

A S W

S T A N D A R D W H IT E

S O F T 1 S O F T

D U R U M

N o 1 N o 2

Q L D N S W

Q L D * N S W * V IC S A W A

Q L D N S W V IC S A

WA

N S W V IC SA WA

N S W

Q L D N S W V IC

SA WA

QLD-QUEENSLAND NSW-NEW SOUTH WALES VIC-VICTOR1A SA-SOUTH AUSTRALIA WA-WESTERN AUSTRALIA

A U ST R A L IA N ^Ή ΕΑΤ jgO A R D Q FFIC E S

Head Office 179 Queen Street, Melbourne, 3000 Postal Address: GPO Box 4562,

Melbourne, 3001 Telephone: (03) 605 1555 Telex: AA30196

Facsimile: (03) 67 2782 Telegraph: Wheatboard Melbourne

Overseas Tokyo Australian Wheat Board, “Seifun Kaikan”

15-6, Kabuto-Cho, Nihonbashi, Chuo-Ku, Tokyo. 103. Japan Manager: N. C. Officer Telephone: 669 1786 Telex: J22839___________

London Australian Wheat Board, Queensland House, 392-393 Strand, London. WC2R 0LZ Manager: R. M. Coulson Telephone: (441) 240 6671 Telex: 885416

New York Australian Wheat Board, c/- Australian Consulate, Rockefeller Centre,

636 Fifth Avenue, New York. N.Y. 10111 Senior Manager (Vice President): T. J. Ryan Telephone: (212) 307 6090 Telex: 276854

State Offices New South Wales Town Hall House,

22nd Level, 456 Kent Street, Sydney. 2000 Postal Address:

GPO Box 4081, Sydney. 2001 Manager: T. A. Pile

Telephone: (02) 267 1333 Toll free no. for grower payments enquiries: (008) 112413__________

Victoria 14th Floor, Marl and House, 570 Bourke Street, Melbourne. 3000 GPO Box 4562 Melbourne. 3001 Manager (Acting): R. Fehlberg Telephone: (03) 67 6261 Toll free no. for grower payments enquiries: (008) 112413__________

South Australia 123-130 South Terrace, Adelaide. 5000 Postal Address: GPO Box 2218, Adelaide. 5001 Manager: K. G. Lyons Telephone: (08) 51 9281 Toll free no. for grower payments enquiries:

(008) 112413

Queensland 619 Ruthven Street, Toowoomba. 4350 Postal Address: PO Box 3035, Toowoomba Town Hall. 4350 Manager: E. J. Laskie Telephone: (076) 38 2433 Toll free no. for grower payments enquiries: (008) 112413___________

Tasmania 1 Castray Esplanade, Hobart. 7000 Postal Address: GPO Box 150B, Hobart. 7001 Manager: R. Pacey Telephone: (022) 23 1940 Toll free no. for grower payments enquiries: (008) 112413____________

Western Australia Ground Floor, Primary Industry Association House,

239 Adelaide Terrace, Perth. 6000 Postal Address: GPO Box 169D, Perth. 6001 Manager: G. M. Lawrence Telephone: (09) 325 7166 Toll free no. for grower payments enquiries: (008) 199094.

For further information contact the Manager, Marketing Services, AWB Head Office.