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Wheat Marketing Act - Australian Wheat Board - Report - 1 October 1993 to 30 September 1994


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9 9 3

C O R P O R A T E P R O F I L E

The AWB is a national and international grain marketer, financing and marketing wheat and other grains for growers. Through the Wheat Industry Fund (WIF) we make strategic and commercial investments that further increase grower profitability.

Although our borrowings are government underwritten, we are grower-financed and all profits are distributed to growers. While not formally constituted as a grower-owned organisation, our operating principles are similar. The AWB is a statutory marketing authority, with federal government legislation and enabling State government legislation providing us with the sole licence to export wheat. We employ about 400 staff, yet the AWB is one of Australia’s largest organisations in terms of both the value of export sales and the extent of international funding.

F U N C T I O N S

The Wheat Marketing Act 1989 spells out these objectives for the AWB:

S To maximise the net returns to Australian wheatgrowers who sell pool return wheat to the AWB by securing, developing and maintaining markets for wheat and wheat products and by minimising costs as far as possible; • By participating in a commercial manner in the market for grain and grain products,

to provide Australian graingrowers, and especially wheatgrowers, with a choice of marketing options.

A C C O U N T A B I L I T Y

The AWB reports to, and is accountable to, the Minister for Primary Industries and Energy, to whom we submit a five-year Corporate Plan and an Annual Operating Plan. The AWB is also formally accountable to graingrowers through consultative meetings with the Grains Council of Australia (GCA). The GCA also approves our Corporate Plan.

A P P E N D I X II · A N N U A L S T A T I S T I C S

E R R A T A

This leaf is to replace page 26 o f th e B5 A ustralian W h e a t Board Annual R eport.

K H R R f n n K e m

Year® 1991-1992 1992-93 1993-94

Prim ary destination Abu Dhabi 1 2 5 ,3 9 9 1 0 3 ,803 107,396

Afghanistan - 7,695 7 ,3 0 0

Bahrain - 1 8 ,030 -

Bangladesh 111,181 6 1 ,2 3 2 9 6 ,2 0 2

Botswana - - 14,862

Cambodia 5 ,4 3 9 - 10,595

China 1 0 4 ,9 8 2 5 8 3 ,3 0 0 1,3 3 8 ,2 1 6

Columbia - - 2 0 7 ,8 1 9

DPR Korea 6 3 ,0 0 0 -

Dubai 4 3 ,5 8 1 1 2 5 ,602 124,519

Ecuador - - 136,771

Egypt 1,6 4 0 ,6 1 6 1,3 2 0 ,3 1 8 1,3 5 8 ,0 4 3

Ethiopia 3 0 ,0 0 0 18,600 2 3 ,8 0 0

Fiji 5 4 ,9 2 3 5 8 ,2 4 3 8 9 ,0 2 0

France - - 67

India - 1,0 4 9 ,9 0 2 -

Indonesia 8 5 0 ,4 3 0 9 7 4 ,0 1 0 1, 187,478

Iran - 1, 1 1 8 ,9 9 6 2 ,5 9 2 ,5 0 0

Iraq 8 7 9 ,1 2 9 1 0 5 ,0 0 0 334,701

Italy - - 8 3 ,9 5 0

Japan 1,0 3 2 ,5 8 3 1, 1 1 4 ,126 1, 178,963

Korea, Rep Of 4 9 7 ,3 4 9 9 7 5 ,1 7 9 1,2 4 5 ,5 2 6

Malaysia 4 1 2 ,1 8 5 6 4 6 ,6 0 4 687,191

Mauritius 1 6 ,3 3 2 3 0 ,6 1 3 2 3 ,058

Morocco - - 19,573

Mozambique - 5 ,8 0 0 2 4 ,0 0 0

New Caledonia 1 4 ,748 14,761 19,595

New Zealand 9 4 ,9 1 4 193,535 2 2 1 .0 8 4

Oman 1 1 3 ,100 150,617 186,501

Pakistan 3 4 3 ,8 4 1 2 1 6 ,5 2 7 4 3 ,4 5 0

Papua New Guinea 8 9 ,5 4 8 115,882 115,683

Philippines 3 2 ,8 0 8 134,612 201,811

Qatar 4 1 ,2 7 5 4 4 ,0 0 4 4 3 ,7 9 0

Singapore 8 1 ,4 9 2 143,918 149,269

Solomon Islands 6 ,9 5 0 8 ,4 9 6 6 ,3 9 0

Somalia 4 ,0 0 0 - -

South Africa 6 7 ,8 0 0 3 1 ,6 6 3 -

Sri Lanka 5 ,001 8,661 6 0 ,7 2 0

Tahiti 165 90 109

Taiwan 1 6 ,308 3 3 ,0 4 2 109,309

Tanzania - 5 ,3 5 0 -

Thailand 7 6 ,1 4 9 8 1 ,6 1 5 175,716

Turkey - - 4 4 ,0 0 0

United Kingdom 8 - 62

Vietnam 4 9 ,3 0 5 3 7 ,7 4 2 6 3 ,987

West Samoa 7 2 32 36

The Yemens 2 7 3 ,5 9 8 2 3 3 ,1 9 9 3 2 2 ,1 4 2

Commonwealth Of Independent States (CIS) - 4 1 7 ,2 0 8 1,0 1 8 ,6 5 4

Total 7,115,211 10,251,007 13,673,858

Source: AWB.

Φ Commercial and food-aid shipments; excludes unsold stock held off shore.

© 1 October to 30 September.

26

C O N T E N T S

Corporate profile in s id e c o v e r

Chairman's letter

Highlights for the year 1993-94

AWB Goals φ

Managing Director's report

Board profiles

Organisational structure and senior management directory

Five-year summary φ

T H E A W B I N P A R T N E R S H I P . . .

with growers

with the international market

with the domestic market

with service providers - storage handling and transport ^

The Academy of Grain Technology

The Wheat Industry Fund ... working for the future

Treasury and Finance

A P P E N D I X E S φ

I: Human resources and Freedom of Information

II: Annual statistics

III: Pool statistics

F I N A N C I A L S T A T E M E N T S φ

I N D E X O F R E P O R T A B L E E N T R I E S φ

AWB Office addresses b a c k c o v e r

I

C H A I R M A N ’ S L E T T E R

Senator the Hon. Bob Collins Minister for Primary Industries and Energy Canberra ACT 2600

Dear Minister.

Over the past 12 months several significant issues have arisen in relation to the Australian grain industry. These include the need to market the largest wheat crop since 1984-85, the continuing adverse impact of export subsidies, the changes occurring in the AWB’s operations as we move to broaden our grain agribusiness base, and the continuation of the industry’s strategic planning process.

On the international market, the GATT agreement provided a firm platform for a reduction in export subsidies over the next six years. However, the Australian grain industry remains concerned to ensure that the agreement is adhered to and that negotiations are resumed as soon as possible on further reforms.

In terms of specific activities, wheat exports totalled 13.7 million tonnes in 1993-94, the highest level since 1986-87. The Trading Division continued to operate successfully in the domestic market and WIF investments in various strategic and value-adding projects were considered and progressed during the year. These include a joint-venture flour mill in Vietnam and proposed arrangements involving several of the State marketing and storage and handling authorities.

I recognise that these proposed investments, as well as the general broadening of the AWB's grain-related activities, have not always been fully understood by all growers. This is an issue of concern and we are taking steps, in liaison with industry representative bodies, to ensure there is a general industry understanding of why the AWB is moving in this direction. In this regard, we see the industry’s strategic planning process as an important basis for determining the industry’s future and reviewing the appropriateness of current industry policy, including the structure, role and effectiveness of the AWB.

Unfortunately, the current drought will drastically reduce the 1994-95 wheat crop. Much of our focus will be on doing what we can to relieve the situation for growers by minimising the AWB's operating costs and ensuring that our customers' needs are met as far as possible. The challenge for the AWB will be to minimise the damage caused to our international reputation as a reliable long-term supplier of grain and to ensure that we regain any lost market share next year.

I appreciate the support we have received from you and the Government during the past year. 1 would also like to thank AWB staff and fellow Board members for their efforts, particularly as we enter this current very difficult season. It is my privilege to present the Annual Report and Financial Statements of the AWB for the 1993-94 year, in accordance with Section 89 of the Wheat Marketing Act 1989.

Clinton Condon Chairman

29 November 1994

2

H I G H L I G H T S F O R T H E Y E A R 1 9 9 3 - 1 9 9 4

Major highlights during the year which contributed

towards achievem ent of the m ission, included:

• Participation in a strategic planning process which will

determine the direction of the milling wheat industry —

and shape the role of the AWB — well into the next

century. · The first commercial paper-raising

program undertaken by the AWB in

its own right and not backed by

governm ent underw riting: a

$A200m Domestic Commercial

Paper - S e rie s 2, w hich

secured an A1+, PI rating

• Further commercialisation

of the W heat Industry Fund

(WIF). reflecting its ownership by

growers while ensuring its critical role

as a capital base for the industry is maintained,

including the successful completion of the first ‘Buyback'

offer of grow er equity. · Introduction of an

information program, the Two by Ten by 2000 initiative,

to encourage improved growing techniques so that

greater crop yields and protein levels are produced

in response to the requirements of end consumers.

• Opening of a marketing office in Hong Kong

to further develop business in China, North and South

Korea, Hong Kong and Taiwan, by establishing close ties

with these markets and ensuring the AWB is aware of, and

responsive to, their needs. · The granting of a licence

to a partnership of the AWB, Goodman Fielder and

Vietnam Food Industries Company (VIFON) for the

establishment of the first new flour mill in Vietnam in

30 years. · Laying the foundations for a continuing

‘The

AWB’s Mission is t o m axim ise lon g­ te r m retu rn s t o A u stralian grow ers by

sk ilfu lly ta ilo rin g th e a ttr ib u te s o f its p ro d u cts and serv ic es t o b e st m e e t th e n eed s o f its

c u sto m ers and grow ers’

feed-grain business in Asia. · Selling four million

tonnes of weather-damaged crop from the 1992-93

harvest. · Securing by the AWB of around 20 per cent of

the rapidly expanding domestic stockfeed market —

exceeding targeted sales and positioning itself to

capitalise on the significant expansion expected

in coming years. · Continued strong

performance as market leader for

all wheat sold for human con­

sumption in Australia, despite a

difficult trading environment.

• Approval by the Board of a

proposal to form a joint-venture

company with Grain Corp for the

marketing of grain in New South

Wales (NSW), bringing growers and

marketers closer together. · Capturing more than

50 per cent of the growth of wheat imports in core Asian

markets, capitalising on years of intense work and

negotiations aimed at developing partnerships and

valuable trading relationships. · Projects and reviews to

strengthen and enhance relationships between growers,

the AWB and storage, handling and transport operators;

and bench-marks for internationally competitive service

provision and disaggregation of charges. · An Enter­

prise Agreement to make the AWB more effective,

customer focused and performance driven by ensuring

staff have the skills, knowledge and motivation to

anticipate and respond to changing business, technical

and organisational needs. · Agreement by the Board to

a proposal to proceed with a joint venture with Grainco

merging with the AWB's Queensland operations.

3

.

A W B G O A L S

I . To be a world class strategic marketer of Australian grains and value added grain products, by understanding

and responding to our customers’ needs and by forming key strategic alliances.

2 . To be the driving, commercial force in the grains industry, servicing growers, tailoring products, influencing

handling and distribution and marketing arrangements.

3. Encourage the profitable growth of the grains industry, to a sustainable average minimum of 30 million tonnes

per annum by 1999.

4 . Develop and maintain world class competencies in trading, risk management, finance and information

technology. Develop skills which will give us a sustainable advantage in product acquisition, product

attributes, product quality and customer service.

5 . Build a minimum permanent capital base of $500 million by 1999 and profitably deploy it to maintain the

advance payments system beyond 1999 and gain maximum leverage in achieving the above goals.

6 . To ensure the AWB has a highly motivated, trained and productive staff able to anticipate and respond to

changing business, technology and organisational needs.

M A N A G I N G D I R E C T O R ’ S R E P O R T

The past year has marked an unprecedented level of partnership and co-operation between all industry participants and a continued diversification of the role of the AWB as we have responded to the changing circumstances and demands of our domestic and overseas customers.

Activities and developments in which we have been involved highlight our continuing commitment to an increasingly independent commercial focus and a willingness to embrace and adapt to the current and future challenges of a dynamic and competitive world market.

Greater commercialisation of borrowing arrangements, including a $A200m commercial paper­ raising in our own right without government guarantee, reviewing of the AWB’s offshore investment activities, and further commercialising of the WIF and the AWB's research laboratories, are prime examples of this commitment.

The AWB’s receptiveness to changing market demands and circumstances has been evident in our strong support for a strategic planning process which will determine the direction of the milling wheat industry — and shape our role — well into the next century.

The AWB welcomes this industry initiative with its scrutiny and evaluation of past and present performance and consultation and negotiation between major industry players. The result will be the most comprehensive review of the industry undertaken and the development of a strategy which will provide direction for the future.

Changes to legislative arrangements for the WIF. developed by the AWB, the Grains Council of Australia

A W B

O P E R A T I N G E X P E N S E S

90-91 91-92 92-93 93-94

DOLLARS PER TO NNE

(GCA) and government, have led to its further commercialisation. The WIF now better reflects its ownership by growers while ensuring the WIF's critical role as a capital base for the AWB is maintained in preparation for the possible removal of the government borrowing guarantee in 1999.

Unitisation and the introduction of Buyback and Cashout options give growers greater flexibility over their equity investments while protecting the WIF’s role as a strategic and value-adding investment vehicle for the industry.

4

M A N A G I N G D I R E C T O R ’ S R E P O R T

Conclusion of the Uruguay Round of GATT in December 1993, and an agreement reached by the USA and the European Union to reduce production and export subsidies progressively by the year 2000, provides justifiable confidence that Australia’s ability to compete in the world trading environment will be significantly enhanced in coming years.

The agreement represents the first breakthrough in a trading war which has had a major impact on the Australian grain industry. The importance of exports is well recognised, and any moves to restrain subsidies or boost trade can only assist our efforts when marketing the Australian crop overseas.

In the area of international trade, the largest crop for more than a decade created marketing opportunities but also brought significant challenges. We were able to capitalise on both the yield and quality spread of Australian wheat produced to satisfy, and in many cases exceed, customer expectations in core and target markets.

Australia's reputation as a reliable, premium supplier was enhanced as significant inroads were made into core, quality-driven markets, due to the availability of all wheat grades. Relationships with major bulk customers were also maintained.

We captured more than 50 per cent of wheat import growth recorded in our core Asian markets. New feed grains business was established in Asia, particularly South Korea, and expanded domestically by selling the remaining four million tonnes of weather-damaged crop from the 1992-93 harvest.

In the national market, we increased our share of all wheat sold for human consumption and maintained our position as market leader, despite a difficult trading environment characterised by significant price competition and drought-affected regions.

The national stock-feed market provided the major trading success for the year. Projected sales were exceeded and around 20 per cent of this rapidly expanding market was secured. In achieving both these results, we remained the largest supplier of feed grain and positioned ourselves to capitalise on the significant expansion expected in coming years.

A range of projects and reviews was undertaken which will serve to strengthen and enhance the relationships between growers, the AWB and the State-

based storage, handling and transport operators. Establishment of relevant bench-marks for internationally competitive service provision and the disaggregation of charges to more clearly identify which costs apply to specific services, will help the organisation continue to work with these service providers to reduce costs, to the benefit of the national grain industry, and Australian industry generally.

From an internal perspective, we are taking significant steps to become a more effective, customer-focused and performance-driven organisation. A major initiative in this area has been the introduction of an Enterprise Agreement incorporating a total commitment to ensuring our staff have the skills, knowledge and motivation to anticipate and respond to changing business, technical and organisational needs.

The Enterprise Agreement, the first to be signed between management and staff of the AWB. reflects a recognition that future security and success will be achieved through continuous improvement and by working together to achieve a competitive and profitable company.

In line with this process, an agreed Vision and Values Statement, designed to guide the organisation’s activities, was established and introduced, and a major staff survey to identify issues requiring attention was conducted by independent consultants.

In the area of Information Technology (IT), significant initiatives were aimed at re-focusing our information resource on its customer base and ensuring more value was derived from the organisation’s IT investment. Substantial progress was achieved in reviewing and enhancing the effectiveness of internal partnerships and, externally, we worked with the Bulk

Handling Authorities (BHAs) on the improvement of stock management systems. During the past year, the Australian grain industry has enhanced its competitiveness in the international market and prepared for the future. The AWB has provided an increased commercial focus and immediate responses to changing market demands. The gains

achieved are a tribute to the dedication, support and contributions of all our staff and our partners throughout the industry.

$

B O A R D M E M B E R S

Board members, other than the Chairman, government member and Managing Direetor, were appointed under the Wheat Marketing Act by the Minister for Primary Industries and Energy, for a three-year term beginning November 1992.

M R C L I N T O N C O N D O N A M

Mr Clinton Condon has been an AWB Board member since 1979, and was appointed Chairman in April 1986. A wheatgrower from Dalby. Queensland, Mr Condon has been involved in grain marketing and grains industry administration for more than 20 years. He was a member of the Queensland Grain Growers’ Association from 1983 to 1986 and Vice-President from

1972 to 1983. He was a Queensland delegate to the Australian Wheatgrowers’ Federation (now GCA) for nine years to 1983, and a member of Queensland’s State Wheat Board from 1974 to 1986. He also acted as Deputy Chairman of both the State Wheat Board Queensland and Bulk Grains Queensland from 1984 to 1986. Mr. Condon was awarded the Member of the Order of Australia in January 1991 for his service to primary industry, and the

Miles Burke Award from the Australian Grain Institute in September 1993.

M R T R E V O R F L U G G E Mr Trevor Flugge, a grower from Katanning, Western Australia, is a partner in an extensive grain and sheep enterprise and a director of Southern Agronomy Services. Mr Flugge has been an AWB Board member since 1984 and was appointed Deputy Chairman in February 1990. He is a former President of the Australian Wheat Growers’ Federation from 1983-84 (now GCA), and was Chairman of the State Wheat

Industry Research Committee from 1980 to 1984. Mr Flugge was a former Director of the Grains Research and Development Corporation and is currently Chairman of CASAC, an agricultural advisory group

to CSIRO.

MR R O B E R T B A R R Y Mr Robert Barry from NSW has extensive financial experience in domestic and international capital markets and has business management expertise. He is currently a director of SBC Australia Group (formerly SBC Dominguez Barry) of which he was co-founder in

1976. He has been Head of Capital Markets and a senior executive for the Midland Bank Group (UK), as well as a director of Samuel Montagu Ltd., a British merchant bank, and Midland Montagu Ltd., the wholesale and investment banking arm of Midland Bank. Mr Barry's other current directorships are: Holyman Limited, Queen’s Trust Australia, St Lukes Hospital Complex and St Lukes Hospital Foundation. He also has a cropping enterprise at Willow Tree in NSW. Mr Barry was appointed to the AWB Board

in 1992.

MR M A U R I C E C R O T T I Mr Maurice Crotti from South Australia is the Managing Director of the San Remo Macaroni Company and has marketing, promotion and business management expertise. Initially he was a business analyst in Italy and the USA before joining San Remo Macaroni in 1977 as National Sales Manager. San Remo Macaroni is a privately-owned Australian company and the largest manufacturer of pasta products in the country. Mr Crotti was appointed to the AWB Board in 1992. Mr Crotti is also a Board member of the South Australian State Opera.

M R I A N D I C K E R

Mr Ian Dicker had a 30-year career with Pacific Dunlop Limited. In 1974, he became Managing Director of Ansell International. Since 1990 he has been Chairman of Steritech Pty Ltd, which operates gamma irradiation plants in Sydney and Melbourne. Mr Dicker is also Chairman of Hastings Deering Ltd and Sirne Darby Ltd,

is a director of PM Corporation, a Philadelphia-based company, a director of Sigma Company Ltd, Mackay Consolidated Industries Pty Ltd, Consolidated Paper Industries, National Consolidated Ltd, Indorayon. an Indonesian-based company and is a Senior Associate of the Melbourne University Business School. He was appointed to the AWB Board in 1992.

B O A R D M E M B E R S

MR E U G E N E H E R B E R T Mr Gene Herbert has been an AWB Board member since 1989 and has business management, marketing and finance experience. He retired as Deputy Managing Director of CSR in 1989, a position he held since 1987. He joined CSR in 1962 and worked in many areas of the organisation’s management, including positions as General Manager of the Energy, and Mineral and Chemical Divisions. He was appointed to the CSR Board in 1986 as Executive Director Finance and was later appointed Executive Director Operations. Mr Herbert is currently Chairman of Powercoal Pty Ltd and of the State Forests of NSW. He is a director of AGE, National Foods Ltd. Equiti Link Ltd. Australian Medical Enterprises Limited and the Asthma Foundation of NSW. He is a councillor of the Sydney Institute. Mr Herbert was appointed Chairman of the Board of Governance of the Forestry Commission of NSW in August 1993.

MR A N D R E W I N G L I S Mr Andrew Inglis, a grower from South Australia, is Chairman of the GRDC. Mr Inglis was formerly President of the GCA. after holding a number of senior industry positions in the grain industry at both State and federal level.

He operates a mixed farming property and a grazing property in South Australia. Mr Inglis is the Vice­ Chairman Group on Grains, International Federation of Agricultural Producers and has been the Australian delegate to the group since 1986. Mr Inglis was appointed to the AWB Board in 1992. He has recently held the positions of Chairman, National Grain Exchange and Chairman, National Farmers’ Federation Trade Committee.

MR G E O F F R E Y J O H N S O N Mr Geoffrey Johnson, a grower from Queensland, was appointed to the AWB Board in 1992. Prior to his appointment to the Board, Mr Johnson was Vice­

President and Treasurer of the Queensland Graingrowers Association and a member of the Wheat

Committee of the GCA. Mr Johnson operates a mixed farming enterprise in central Queensland and holds other industry positions serving as a Board member of the GRDC, a Director of the Bread Research Institute (BRI) and as a member of the Industry Advisory Committee of the Corporate Research Centre for Tropical Plant Pathology.

MR T I M O T H Y M A C K E Y Mr Timothy Mackey was appointed government member to the AWB Board in 1991. Mr Mackey is the First Assistant Secretary for the Corporate Policy Division of the Department of Primary Industries and Energy. Mr Mackey is Director of the Australian Horticultural Corporation and a former Chairman of the

International Wheat Council.

MR N O R M A N M A R R A N Mr Norman Marran is a grower from NSW and an agribusiness management consultant. He was first appointed to the AWB Board in 1984. Mr Marran has

extensive experience in business management, marketing (including international commodity marketing and processing) and finance from a previous position as Chief Executive of Auscott Ltd and director of Cargill Oil-seeds Ltd. Mr Marran is currently chairman of the Northern Region of the GRDC, a Director of the BRI. United Grain Ltd., Vietnam Flour Mills Ltd. and General Councillor of the NSW Farmers Association and was a previous member of the Australian Wheat Research Council.

MR J O H N L A W R E N S O N Mr John Lawrenson has been a Board member and the Managing Director of the AWB since 1990 and is a Director of Vietnam Flour Mills Ltd. Mr Lawrenson

was previously Managing Director of Griffin Holdings Ltd. an international company whose activities included mining, manufacture, distribution and agriculture. Mr Lawrenson is a member of the Advisory Board.

Agribusiness Research Unit, Monash University.

O R G A N I S A T I O N A L S T R U C T U R E A N D S E N I O R M A N A G E M E N T D I R E C T O R !

GENERAL MANAGER MARKETING

Marketing Services

Marketing Analysis Development International Marketing

Overseas

NATIONAL OPERATIONS MANAGER Shipping Operations

SENIOR MANAGER FINANCIAL CONTROL

& ADMIN.

Accounting and Financial Control

Accounting

Procedures & Systems

Financial Services

Risk

Management Management Administration Services

TREASURER

Capital Markets

T reasury Dealing

SENIOR MANAGER STRATEGIC DEVELOPMENT

Human Resources

Legal and Secretariat

Strategic

MANAGING DIRECTOR

MANAGER

MANAGER INTERNAL Internal

MANAGER TRADING

Domestic

Marketing

MANAGER PROJECT INVESTMENT Investment

DIRECTOR ACADEMY OF GRAIN TECHNOLOGY

Quality Assurance

Analytical Services

Research

Development

Testing

MANAGER INFORMATION TECHNOLOGY

Information Technology

8

S E N I O R M A N A G E M E N T D I R E C T O R Y

MANAGI NG DI RECTOR

Mr John Lawrenson

GENERAL MANAGER MARKETING

Mr Ron Storey

NATIONAL OPERATI ONS MANAGER

Mr Tom Pile

SENIOR MANAGER

FINANCIAL C O N T R O L

AND ADMI NISTRATION

Mr Tony Connon

TREASURER

Mr Michael Doyle

SENIOR MANAGER

STRATEGIC DEVELOPMENT

Dr Timothy J. Ryan

SENIOR MANAGER

INTERNAL AUDIT

Mr Richard Norris

SENIOR MANAGER TRADING

Mr Alan Winney

SENIOR MANAGER

PROJECT INVESTMENT

Mr Tim Edgecombe

DIRECTOR ACADEMY OF

GRAIN T E C H N O L O G Y

Dr Ron Wills

SENIOR MANAGER

INFORMATION T E C H N O L O G Y

Mr Gary Bruce

SENIOR MANAGER

STATE OFFICES

Mr John Crosbie

9

F I V E - Y E A R S U M M A R Y

Y E A R ©

P H Y S I C A L

1989-90 1990-91 1991-92 1992-93 1993-94

Area of wheat ® (Ό00 hectares) 9.004 9,218 7,183 8,275 8.448

Yield ® (tonnes per hectare) 1.57 1.63 1.49 1.78 1.92

Production (’000 tonnes) 14,214 15,006 10,557 14,739 16,249

Wheat availability (tonnes)

Acquisitions ® 13.057 13.382 8,075 13.584 15,123

Carry-in ® 2,380 3,203 3,039 2,379 4.032

TOTAL AVAILABILITY ® 15,437 16,585 11,114 15,963 19,155

Wheat sales (’000 tonnes)

Exports 10,664 11,772 7,115 10,251 13,673

Domestic 1,570 1,774 1.620 1.680 1.981

TOTAL SALES 12,234 13,546 8,735 11,931 15,654

1989-90 1990-91 1991-92 1992-93 1993-94

($'000) ($'000) ($’000) ($'000) ($’000)

Revenue

Sales 2.684.759 1.919,223 1,791,703 2.415.953 2.738.019

Interest income 162,064 103,653 59,450 46.695 27.752

Expenditure 458.772 486,763 256,150 395.570 514.790

Direct costs

Interest expense 185,044 97.929 78.845 58.923 62,055

Export credit insurance 23,316 7,783 4.729 8.919 12.387

AWB operating expenses 48.154 41,620 43,233 47.924 55.198

Debtors 1,245.019 589.498 282,280 423.426 427.729

Borrowings 1,432,783 1.246.327 863.087 1.352.124 1.155.622

© I October to 30 September. Preliminary figures for 1993-94.

© Source: Australian Bureau o f Statistics.

© Includes acquisitions by Trading Division.

® Includes carryover.

1 0

I N P A R T N E R S H I P . . . W I T H G R O W E R S

G C A From a new era of co-operation and partnership between the AWB, the GCA and other stakeholders, there has evolved a strategic planning process which will include the most comprehensive review of the Australian grain

industry and development of a strategy to take the industry into the next century. The process began early in 1993 after being identified at the GCA’s Grains 2000 conference of 1991. A Strategic Planning Unit (SPU) to review and set in place strategies for the milling wheat sector was established and followed on from those formed to

investigate the malt, barley and pulse industries. International consultants Booz, Allen and Hamilton were engaged to present a blueprint of the major issues facing the milling wheat industry. An additional series of specific issues related to customers and markets, and

supply and production capacity, was identified and required further investigation. This research was due to be completed by the end of November 1994. Based on the findings, the milling wheat SPU, made up of representatives of a wide range of relevant industry and government organisations, will work with the consultants to develop long-range strategic and implementation plans for the industry.

The research, planning and consultation process will generate an agreed and unparalleled strategy to drive the industry and the AWB into the next century. The AWB is accountable for its performance, both to the Minister for Primary Industries and Energy and to

the industry, through formal consultative meetings with representatives of the GCA. This consultative process continued throughout 1993-94, with four meetings held. The AWB met the GCA’s expenses amounting

to $247 298.

P a y m e n t s t o g r o w e r s

The AWB again improved on its performance of prompt settlement with growers. Its objective of ensuring payment within 21 days of delivery was close to fully realised and 99 per cent of growers received payment within this timeframe. Around 75 per cent of growers

were paid within seven days. Pool update reports were improved by being more closely aligned with the grain calendar and issued more frequently during the harvest period, keeping growers

better informed and enabling them to make more effective marketing decisions. The payment advice and pool performance form was redesigned so that data supplied to growers was clearer

and more informative. A $5 a tonne bonus scheme for deliveries of segregated Australian Standard White (ASW) grade of 10 per cent protein and above was introduced during the year and proved highly successful with the grower

response exceeding expectations. Co-operation between growers, the five State BHAs and the AWB was integral to the success of this scheme. A total of 3.756 million tonnes were segregrated in this first year.

C o m m u n i c a t i o n s A significant development was the introduction of the Two by Ten by 2000 program — two tonnes a hectare at

protein levels of 10 per cent or above by the year 2000 — to encourage improved growing techniques so that greater crop yields and protein levels are produced to

meet the requirements of consumers. Buyers have put Australia on notice that ASW wheat at less than 10 per cent protein is no longer considered a premium milling wheat.

The AWB expects that, in future, two distinct categories of wheat will be produced in Australia. The first will be above 10 per cent protein and aimed at the premium milling wheat market, and the other below this protein level and directed to the lower end of the milling market or to the feed-grain market. The AWB has challenged growers, through increased payments, to lift the national average of ASW wheat, both in terms of protein levels and yields per hectare.

Consultation between the AWB. State and federal departments of primary industry and various other agricultural groups, helped identify processes for securing yield and protein improvements. The Two by Ten by 2000 initiative has involved supplying growers

with detailed technical and support information to help them achieve this objective. While the bonus scheme for segregated ASW 10 per cent protein wheat was an incentive for growers to participate in the program, there has certainly been increased awareness of the need for Australia to better address the needs of its customers. Co-operation between growers, the GCA, BHAs and the AWB to improve data systems, and the segregation of wheat

prior to shipment, in order to meet specific customer demands, has reflected this. Establishment during the 1993-94 harvest of a ‘Grower Hotline’ which operated over extended hours during weekdays, weekends and public holidays, was a resounding success and more than 26000 calls were received. AWB staff were available through the free- call 008 "hotline" to provide information on pricing,

payments and available services. Analysis of the information requested and comments received will help the AWB shape future communications with growers, based on a better understanding of their needs.

Following completion of a major review of all State- based services, action to improve support available to growers was initiated. Staff training, aimed at ensuring service excellence, was implemented and Public Affairs officers were appointed in each State to further improve

communication between the AWB and its stakeholders. The AWB's traditional communication vehicles continued and reflected a strategy of promoting the organisation increasingly as a commercially-driven,

professional agribusiness. Contributions to the monthly audio tape Triple A, which provides growers with agricultural and financial information, were maintained, as was production of the AWB’s own tape. Ear Ear.

I N P A R T N E R S H I P . . . W I T H G R O W E R S

The CashCrop newsletter providing information on pool performance and expected returns was continued, with more frequent updates during the harvest season. AWB information was also made available through Telecom’s ‘Discovery' network, which is readily accessible to home computers by telephone, by polling the AWB’s facsimile service and by calling the AWB's 0055 recorded information line.

The national weekly rural television program Cross Country continued to receive support from the AWB and editorial contributions were made to the quarterly newsletter of Triticale Growers and

Marketers Incorporated, and publications of the Australian Lot Feeders Association and the WA Noodle Wheat Growers’ Association Newsletter. Noodle News.

P o o l c l o s u r e s

In line with its announced intention of returning equity to growers within 18-24 months of receiving pooled crops, the AWB closed three outstanding pools — the 1989-90, 1990-91 and 1991-92 during the year.

The organisation has made a commitment that in future years, pools will, if at all possible, be closed within this timeframe so that administrative costs are minimised and outstanding payments to growers are delivered more promptly.

On the Iraqi debt, no progress has been made in the continuing attempts to obtain payment of the amounts due, as Iraqi assets are still frozen. The AWB does continue to trade with Iraq (on a cash basis only) in accordance with the UN decision which allows the sale of foodstuffs to Iraq by UN member countries.

I N P A R T N E R S H I P . . . W I T H T H E I N T E R N A T I O N A L M A R K E T

T h e i n t e r n a t i o n a l e n v i r o n m e n t

Market opportunities for Australian premium milling wheat were created when weather damage and disease reduced the volume of quality crop produced by the USA and Canada. The result was an increase in world demand and prices for quality wheat.

At the same time, payments for most other grades delivered to the 1993-94 pools fell, due to the absence of some of the world's largest buyers. Faced with slow export programs, Europe and the USA dropped their prices on already heavily subsidised wheat in attempts to attract business.

The USA announced its intention to offer almost 25 million tonnes of subsidised wheat in the coming year, representing about 75 per cent of its anticipated export crop. While there has been no substantial increase in the number of countries targeted by the Export Enhancement Program (EEP), the allocation includes some of Australia’s regular customers, such as Pakistan, Egypt and Yemen.

The Uruguay Round of GATT was concluded in December 1993, and an agreement reached by the USA and the European Union to progressively reduce production and export subsidies by the year 2000. The impact of this agreement is not expected to be felt until towards the end of the six-year reform period.

Globally, the number of individual customers that the AWB now services is increasing. This increase is a result of the rapid expansion in buyer fragmentation and deregulation around the world and is expected to be a continuing trend in 1995.

This fragmentation of central buying agencies is a significant change. In order to respond to this, the AWB

is continuing to re-focus its marketing resources closer to its customer base. This has led to the opening of an office in Hong Kong in April 1994 and will mean the redeployment of the resources of our London/European operations to Cairo in early 1995.

E x p o r t i n g w h e a t

Australia’s best crop for almost a decade enabled the AWB to make significant inroads into a growing number of quality-driven markets, and at the same time maintain partnerships with major bulk customers by meeting — and, in most cases, exceeding — supply targets. Availability of stock across the entire quality range meant that our market penetration was increased and Australia’s reputation as a reliable, premium supplier was significantly enhanced.

The AWB’s major export achievement in 1993-94 was to capture more than 50 per cent of the wheat import growth recorded in core Asian markets. This was the culmination of years of intense work and negotiations to build relationships and secure customers’ confidence.

The quality and spread of the Australian crop meant the AWB could fill the void created by damaged US and Canadian wheat and capture further market share by addressing the complete needs of its customers. As a result, we were able to make further inroads and strengthen our trading position in these markets.

In Taiwan, for example, eight years of negotiation has seen Australian wheat exports rise from nil in 1990­ 91 to 109 308 tonnes in 1993-94. This result was far in excess of the AWB’s target and included a combination of a range of all wheat grades.

I N P A R T N E R S H I P . . . W I T H T H E I N T E R N A T I O N A L M A R K E T

9

Indonesia’s position as one of Australia’s largest and best customers was further strengthened with the purchase, for the first time, of more than one million tonnes of wheat in a single calendar year. Apart from geographical considerations, consistent attention to quality and customer service has played a major role in this expanding and dynamic market.

Japan bought substantial tonnages of Australian Prime Hard and ASW. This signified a renewed confidence in Australia’s ability to ensure continuity of supply and meet Japan’s stringent import and food safety requirements. Total sales for the year of all grades exceeded one million tonnes, including 260 000 tonnes of Australian Prime Hard wheat in addition to

870000 tonnes of ASW After re-entry to the Philippines market during 1992­ 93, following an absence of more than 14 years, sales increased a further 90 per cent in 1993-94.

Relationships with the world's major grain customers were also maintained. Targets were met in China and Russia, and Iran emerged as an increasingly important destination, with supply almost double the objective set. Due to increased volumes of subsidised US wheat to Egypt, Australian tonnage to that market was slightly below target.

A s i a n f o c u s

The AWB has identified the Asian region as a key strategic plank for the future of the Australian grain industry, offering both quality and volume opportunities.

A strategic research program has been established to assess both current and potential opportunities in Asian markets and enable the AWB to prioritise its allocation of resources. A model to identify each individual customer and their end-use requirements is being used

to develop an overall picture of industry growth trends. Results of this work will be used to direct the AWB’s research and development programs and determine the commitment of resources to specific projects and activities.

The AWB has been able to create a significant business opportunity by completing the feed-wheat program from the 1992-93 weather-damaged harvest — turning what was perceived to be a disaster into a major export success. Not only has almost four million tonnes of weather-damaged crop been sold, but the AWB has laid the foundations for an ongoing feed-grain business. New feed-wheat business in Asia, particularly South Korea, has been established and will result in future sales to these markets.

The opening of a regional marketing office in Hong Kong is an indication of the growing importance of markets in the Asian region to the Australian grain industry. The role of the office is to develop business in China. North and South Korea, Hong Kong and Taiwan, by establishing close ties with these markets

and ensuring the AWB is aware of, and responsive to, their needs. The Hong Kong office should also result in closer relationships with customers in the region and

act as a precursor to further investment and market development throughout Asia. The new office will be responsible for ensuring Australian graingrowers have

an accurate understanding of the type of grain customers want, and for promoting Australian grain in north and east Asia. The AWB played a key role in bringing together

an Australian consortium to bid for construction of a US$1 billion storage and handling facility in China. In conjunction with Transfield and Baulderstone Homibrook, and 50 subcontractors, the AWB has committed significant resources to tendering for this project.

The objectives of AWB involvement are threefold. In the lead-up to deregulation and decentralisation of Chinese buying arrangements, the AWB aims to strengthen its relations with individual provinces. The project is viewed as a marketing exercise in this regard.

In addition, the AWB saw an opportunity to bring the Australian grain storage industry together and enhance the Australian bid with its 30 years of experience and contacts in the Chinese grain industry. The project is also expected to generate a small profit which would be returned to the WIF.

We continue to provide an international customer- focused marketing team by training and recruiting staff with a broad range of cultural and language skills. During the year, two staff have completed work and training in Asia.

P a c i f i c f o c u s The AWB exceeded targets for wheat sales into New Zealand, Papua New Guinea, the Solomon Islands and other Pacific Islands. In the New Zealand market, it was able to displace Canadian and US milling wheat with an aggressive marketing program due to the availability of quality Australian crop.

Growth in the Pacific market has resulted from increased demand for feed grain, particularly wheat and barley. The AWB has helped stimulate this demand by working closely with its customers, providing technical

support and data and undertaking small trial runs to enhance understanding of the favourable characteristics of Australian feed grain.

E x p o r t i n g o t h e r g r a i n s

Trade in sorghum increased during the past year and the achievement of target sales to Japan contributed to the strengthening of a significant continuing relationship. The AWB continues to be the market leader in the

export of pulses from Australia. Its strong acquisition base in field-peas, chick-peas and faba beans throughout Australia, along with lupin and canola

programs in eastern and southern Australia, has ensured that the AWB has improved returns to growers during the past year. Pulse and oil-seed trade was strengthened, with faba

beans and chick-peas sold to the Middle East and lupins and field-peas traded with Spain, Japan, Malaysia and

13

I N P A R T N E R S H I P . . . W I T H T H E I N T E R N A T I O N A L M A R K E T

Fiji: Markets for grains and pulses were maintained in New Zealand, South Korea, Europe and Japan.

M a r k e t d e v e l o p m e n t

Understanding and servicing the needs of its customers by developing and strengthening relationships was an ongoing marketing objective of the AWB during 1993-94. A series of technical training programs, industry orientation visits and overseas promotional activities, contributed to this process.

Enhancement of the baking and milling capabilities of AWB customers through technical training with Australian wheat was undertaken, and 40 people representing the major markets of South-East Asia, Korea, Iran, the Gulf States and Pacific Islands, took part.

A major sponsor of the Prima-NPB Bakery Industry Training Centre (B1TC) in Singapore, the AWB took part in an Asian baked products international training course during May and June, the first major offshore program the AWB has conducted using BITC staff and facilities. The AWB plans to use the centre as a venue for future training programs in order to gather technical information on a range of Asian foods not commonly made in Australia, but for which Australian wheat is well suited.

Earlier in the year, two young Australians participated in the inaugural Bake Skills Asia competition in Singapore, overcoming environmental and taste considerations to finish first among a field of seven teams from five countries.

I N P A R T N E R S H I P . . . W I T H T H E D O M E S T I C M A R K E T

The strong AWB performance in the sale of wheat for human consumption in Australia continues to improve, maintaining its position as market leader despite a difficult trading environment, characterised by significant price competition and drought in major growing regions. It continues as market leader in the human consumption wheat and pulse markets and has a growing presence in the feed-grain market.

The national stock-feed market provided the major domestic trading success for the year. Projected sales were exceeded and around 20 per cent of this rapidly expanding market was secured. The AWB emerged as the largest supplier of feed grain to the Australian market and positioned itself to capitalise on the significant expansion expected in coming years. The domestic feed-grain market currently consumes around 5.5 million tonnes of grain annually and is expected to grow to 7.5 million tonnes by the year 2000.

The organisation has strengthened its relationship with the stock-feed market by appointing a national feed-grain manager and dedicated merchants in each State. It has built on strong links with industry umbrella bodies and established a seed credit scheme to encourage

further production. The strength of these relationships, backed by deregulation of the domestic market for barley in some States and the anticipated changes which will allow access in other State markets and grains, will enable the AWB to capture a significant share of the major growth expected in this sector during the next decade. Its commitment to customers and national coverage provide good growth opportunities.

Sales targets were achieved, and contracts for around two-thirds of the Australian demand for industrial and human consumption wheat were successfully delivered. This represented an increase in tonnes sold from 1992-93,

with growth occurring primarily in the area of industrial usage. The main growth in this area is in the supply of grain for the production of ethanol as an alternative automotive fuel and, as the technology is refined, there is potential for significant future growth.

A focus on expanding domestic sales of pulses and oil­ seeds resulted in significant growth, from 15 000 tonnes in 1992-93 to around 55 000 tonnes this year. A seed credit scheme for faba beans, chick-peas and albus lupins was extended beyond the east coast to Western Australia during the past year.

Segregations for first and second grade faba beans and field-peas were established in conjunction with the BHAs as part of an AWB strategy to develop a world reputation for quality Australian product and, as a result, attract premium prices.

The AWB continued to positively reflect the industry trend towards increased demand for flexibility in marketing decisions. Regional pools were established for milling and hard wheat in the Fremantle zone of Western Australia and in Victoria, Queensland. NSW and South Australia, and have increased returns for growers in those regions. Growers were also offered higher cash prices, forward and minimum price contracts, deferred delivery contracts, seed credit schemes and hectare contracts.

Around 10 per cent of AWB-acquired grain was purchased for cash and the AWB expects this to increase significantly by the end of the decade. A rise in cash purchases resulted from the appointment of new agents, enhanced training and information given to those agents and continuing co-operation from BHAs.

Industry bodies which represent AWB customers continued to receive strong support from the organisation. These include the Australian Lot Feeders’ Association, the Flour Millers' Council of Australia and the Stockfeed Manufacturers Association. The AWB further

I N P A R T N E R S H I P . . . W I T H T H E D O M E S T I C M A R K E T

consolidated its relationship with the poultry, pig and dairy industries to allow Australian graingrowers greater access into these rapidly developing industries. Internal crop forecasting procedures including

meteorological monitoring and econometric analysis to provide better information on domestic crop production were introduced from July 1994. Improved data and accuracy will assist the AWB with marketing decisions which will result in better returns for its supplier growers.

There were a number of developments in grain transport during the year. The amount of grain moved by road exceeded one million tonnes and the AWB acted to reduce transport costs and better manage the movement of grain around the country by establishing a Transport Trading Unit.

The AWB has looked to exploit niche market opportunities for container exports of grain by channelling resources into a container trading

section and working with the BHAs to develop processes for further segmentation. Changes to export procedures for trade in containerised products is expected to provide exciting new opportunities for the AWB during the next year.

The next season will see a significant change in the marketing of grain in NSW. The AWB and GrainCorp have agreed to a proposal, subject to ministerial approval and consideration by the Trade Practices Commission, to form a joint-venture company aimed at boosting grain marketing efficiency and bringing growers and marketers closer together. Under the proposal, the AWB will not run independent trading activities in the State, but would retain its quality control, grower payments and other

functions concerned with the export of grain from NSW. It remains an important priority to continue to work closely with BHAs and State marketing boards to improve efficiency in marketing Australian grain.

I N P A R T N E R S Η I P . . . W I T H S E R V I C E P R O V I D E R S -

S T O R A G E , H A N D L I N G A N D T R A N S P O R T

The AWB was involved in a range of projects and reviews designed to strengthen and enhance the relationships between growers, the AWB and the State- based storage, handling and transport operators. Activities were aimed at establishing relevant bench­ marks for internationally competitive service provision and disaggregation of charges to more clearly identify those which apply to specific services, particularly in the area of value-adding.

The AWB continued negotiations with the BHAs in NSW, Victoria and Queensland over refinement of cost- based disaggregation of charges aimed at achieving a more price sensitive storage and handling system. The east-coast BHAs, which have already disaggregated their pricing, will introduce further refinements, and South Australia has agreed to disaggregate its pricing from next year. Negotiations are continuing with the Western

Australian BHA. The most comprehensive bench-marking study ever undertaken of Australian rail transport was conducted during the year. The study contrasted the relative efficiency of rail transport in each Australian State and

specific rail networks in Canada and the USA. With the co-operation of each participant, every cost-related factor in the transport system was assessed and areas

performing well, together with those requiring improvement, were identified. In the area of storage and handling, studies were

completed into the performance over the past two years of Australia’s ports and terminals, compared to those of Canada and the USA. These studies are the most comprehensive of their type ever conducted in Australia.

A V E R A G E G R O W E R D E D U C T I O N S

C O N S T A N T ( 1 9 9 3 - 9 4 ) D O L L A R S

10-YEAR STATE-WEIGHTED AVERAGE TO 1993-94

$ p e r t o n n e

.* · / / / / / / / / / /

F reig h t

Each AWB State Office will use the reports from these studies as a basis for working with the respective rail transport, storage and handling authorities, to bring about further efficiencies. Prior to these studies, there has been no real evidence upon which to base negotiations for change and the AWB looks forward to

Ι Ϊ

I N P A R T N E R S H I P . . . W I T H S E R V I C E P R O V I D E R S -

S T O R A G E , H A N D L I N G A N D T R A N S P O R T

working together with the relevant authorities to achieve benefits for all parties. Network reviews to investigate changes at the interface between storage, handling and transport, to eliminate operating inefficiencies and bring about benefits to the system as a whole, were completed in each State and a range of issues to be addressed has been identified.

In NSW. a performance-based agreement is being negotiated with the State Rail Authority. This will be the first agreement in NSW to encompass the AWB, the State Rail Authority and GrainCorp. It will address issues such as service, price and the obligations of all parties, together with penalties for non-compliance in relation to performance criteria. Negotiations are also addressing the issue of a rationalised approach to capital

investment in the overall storage, handling and transport infrastructure. An agreement was signed between the AWB and the Victorian Government’s V/Line to reduce grain freight costs to Victorian growers and help build a more internationally competitive grain industry. The customer-driven agreement incorporates performance

measures which will lead to further efficiencies and more direct savings for growers. An existing five-year rail freight agreement in Western Australia was extended for a further five years and incorporates very favourable terms for growers.

Due to the complexity and ever-changing nature of each State system, reviews will continue to be made at regular intervals.

Significant inroads into stock management resulted from joint projects between the AWB and the BHAs aimed at maximising the value of stock held. Through practices such as blending, re-grading and segregation, the AWB has been able to service the requirements of its customers more accurately. Greater integration between the management systems of the AWB and the BHAs was crucial to this achievement.

Increased segregation of higher quality wheat prior to storage and export was an important achievement. Introduction of the bonus scheme for deliveries of segregated ASW grade of 10 per cent protein played a vital role in this and could not have been achieved without co-operation between growers, the five State

BHAs and the AWB.

T H E A C A D E M Y O F G R A I N T E C H N O L O G Y

The Academy of Grain Technology (AGT) continued its important role of undertaking research and development which will establish and strengthen links between the Australian grain industry and its customers in markets throughout the world.

A processing and evaluation centre for Asian foods was established at AGT headquarters in Werribee, Victoria. The $750000 centre, will be able produce a range of noodle types using small volumes of wheat.

It will assess the performance of Australian wheat and the factors which contribute to premium-quality noodles. Establishment of the facility also serves to show overseas customers that Australia is taking significant steps to address their specific requirements, a fact which has enhanced the AWB's credibility and the respect with which it is held in many core markets.

A project began during the year to identify further means of evaluating perceptions of end consumers. Sensory analysis testing by consumers of Asian descent, both in Australia and Korea, was carried out to evaluate responses to noodles made from various varieties of Australian wheat. Information obtained was provided to other Australian research bodies to assist in the development of their sensory-testing capabilities.

The AGT continued its collaborative work with the State-based BHAs to ensure grain-testing systems were working to optimum efficiency. Regular testing of wheat residue levels was performed in response to changing standards in a number of countries and AGT services were employed to test Australian rice destined for Japanese markets.

A project to define factors which contribute to varying energy levels in feed wheat was begun. In addition, the first 12 months of research into a three- year study to quantify the environmental characteristics of Australian wheat, was completed.

A joint research and development project to investigate value adding opportunities for industrial wheat products was entered into with the Victorian University of Technology. A number of AGT staff hold formal positions or are undertaking higher degrees within the University’s Department of Food Technology.

For some time, the AWB has been investigating the adoption of IS09000, the International Organisation for Standardisation (ISO) quality assurance standard. All laboratories at the AGT will now pursue accreditation under IS09000, a further indication of the AWB’s drive to meet world best practice and to continually improve service to customers. Official accreditation will give customers greater surety in AWB grain attributes.

T H E W H E A T I N D U S T R Y F U N D ( W I F ) . . . W O R K I N G F O R T H E F U T U R E

The WIF is integral to the continued operation of the AWB and its ability to provide a complete marketing function on behalf of all growers. As the AWB’s capital base, the WIF underwrites the organisation’s domestic trading operations and enables it to make strategic and value-adding investments which support core business activities.

Its future importance is highlighted by the industry agreement in 1992-93 to build the WIF up to a level of $450-500m by the year 2000 so the AWB can finance harvest payments if the government guarantee is terminated in 1999.

In 1993-94. the grower levy realised $40m, increasing funds held in the WIF to $201 m. The rate of return to WIF investors was 4.6 per cent. While this rate of return is down significantly on the previous year, due to the falling bond and equity market, it compares very favourably with other capital stable funds.

Acknowledging the vital role the WIF plays, it has nevertheless been recognised for some time that there has been concern among growers about the issue of access to equity. In response to this, the GCA, the AWB and government have agreed upon and implemented changes to the structure and provisions of the WIF during 1993-94. These amendments reflect the ownership of the fund by growers and introduce provisions to access equity through the Buyback and Cashout options yet still ensuring the continued build-up

in funds to the agreed target by the year 2000. The reshaping of the WIF has provided an optimum balance between grower needs and the WIF’s critical role as an ongoing capital base for the industry.

This year's unitisation of equity in the WIF is an administratively simpler process which will result in cost savings and provide growers with units in the fund according to the level of equity held. The value of

individual units will be tied to the performance of the fund and growers will be able to more accurately gauge this by tracking unit prices. The Buyback option will be variable from year to

year, and growers will be offered the opportunity to sell a percentage of their equity holding in the fund to the AWB. In 1993-94, this rate was 5 per cent of equity in the fund representing an amount of $8.4m.

In addition to introducing the Buyback option, the WIF Regulations governing Cashout refunds to equity- holders who have left the industry were broadened. Two new criteria have been introduced in recognition of

the difficulties experienced by wheatgrowers in recent years. Those who have left the industry and have not been involved in wheat production for at least three years, and those who have left the industry and are in

difficult financial circumstances, are now eligible. Previously, the Cashout refund had been available only in the case of death or bankruptcy.

All WIF equity-holders received notification of the Buyback and Cashout arrangements during the year and a 'hotline’ facility was established to help equity- holders and their advisers with any queries. More than 2500 calls were received.

The overwhelming majority of equity-holders (89 per cent) elected to leave all their earnings in the WIF. An important AWB initiative during the year was the move to develop closer links with suppliers and customers, by negotiating to take equity-holdings and enter into joint-venture arrangements with some State-

based marketing and handling organisations. The AWB has been negotiating an agreement to take a 49 per cent stake in Grainco AWB. Grainco AWB would be formed by the merger of Grainco and the AWB’s Queensland trading operations. The investment

is scheduled to be completed in 1995, subject to the approval of the Minister and the views of the Trade Practices Commission. The proposal to form a joint- venture marketing arrangement with Graincorp

in NSW also involves WIF underwriting. As with Grainco AWB, this proposal is subject to ministerial approval and the consideration by the Trade

Practices Commission. The AWB's investment in the Shenzhen flour and feed mill in China was maintained and strengthened. In response to a capital call on shareholders, the AWB

subscribed an additional $280000 in 1993-94 to increase the capacity of the mill. The strategic value of this investment was reaffirmed by the purchase of a range of wheat grades by the mill, whereas China had previously been a single-grade buyer. This investment has underlined the importance of building relationships and understanding the needs of provincial buyers in this rapidly expanding market.

In September 1994, the Government of Vietnam announced that a consortium of the AWB. Goodman Fielder and VIFON had been granted a licence to establish a flour mill in Ho Chi Minh City. The new

mill, the first to be established in Vietnam in 30 years, will have an annual flour milling capacity of 90000 tonnes with provision for it to double in size as the market grows. The AWB will be the nominated supplier of wheat to the new company. Goodman Fielder will be the senior shareholder in this venture with a 52.5 per cent share of the company. The AWB will take up 17.5 per cent and VIFON will hold the remaining 30 per cent.

Following a decision of the Board of the Moora Pulp and Paper Co. to delay indefinitely the next stage of the straw mill project, agreement has been reached to sell the WIF equity in the company to the majority

shareholder for a consideration of $375 000. The AWB is also proposing, subject to ministerial approval, to enter into a joint-venture project in Egypt to develop a new flour mill with various downstream

T H E W H E A T I N D U S T R Y F U N D ( W I F ) . . . W O R K I N G F O R T H E F U T U R E

processes. Egypt has been a significant market for many years and the partial deregulation in buying arrangements will most likely result in different customer requirements. The AWB will use the investment to position itself to capitalise on opportunities which may emerge as the Egyptian market deregulates.

This and other proposed investments have been approved by the GCA as consistent with the WIF

investment criteria set out in the WIF Strategic Plan 1993-1999. The AWB’s Trading Division in 1993-94 made a record profit contribution to the WIF. The contribution made by the Trading Division to the WIF has grown strongly over the past five years and. today, provides a significant proportion of the WIF's income.

T R E A S U R Y A N D F I N A N C E

A major achievement was establishment of the first commercial paper-raising program undertaken by the AWB in its own right and not backed by government underwriting.

Rated A1+, PI. the $A200m Domestic Commercial Paper — Series 2, is used to fund the AWB’s commercial activities and replaced the $A150m CBA Multi Option Facility. The paper is backed by the net assets of the AWB’s commercial activities, which mainly comprise the Trading Division and the WIF.

The AWB’s total borrowings peaked at $2.033m during 1993-94 and. although this was below average, it represented a significant increase over the previous year and reflected the larger harvest.

Other programs to fund its borrowings were similar to the previous year, however, the following changes were made: Deutschmark and Yen were included as base issuing

currencies in the US Global Medium Note Program; and Swiss Franc and Dutch Guilder were included as base issuing currencies in the Euro Medium-term Note Program and the Multi-Currency Euro Commercial Paper Program. During the year, the AWB continued to keep its funding facilities up to date with market developments, which ensured maximum flexibility in funding and distribution of its securities.

The AWB Treasury became a member of a consultants panel providing expert advice on the many aspects of off-exchange and on-market derivatives to the

Companies and Securities Advisory Committee. The various recommendations of the panel will provide the basis for future changes to the Corporations Law covering derivatives.

The highest possible short-term ratings of PI and A1+ were affirmed by Moody’s Investor Service and the Standard and Poors Corporation for all AWB borrowing facilities. The AWB's longer-term ratings are the same as assigned to the Commonwealth of Australia, namely AA and Aa2.

The AWB's US dollar short-term borrowing costs continued to be below the London International Bank Offer Rate, which is the international bench-mark. Funding programs for the past year were:

$US800m Multi-Currency Eurocommercial Paper $A400m Eurocommercial Paper $US300m US Medium-term Note $US300m Euro Medium-term Note DFL200m Dutch Guilder Commercial Paper CHF200m Swiss Franc Payment Rights $A850m Domestic Commercial Paper $US750m Commercial Paper $A200m Domestic Commercial Paper - Series 2 (for funding the AWB's commercial activities) Major wheat importers continued to rely on credit. The AWB continued to insure credit sales through the Government's Export Finance and Insurance Corporation to the maximum cover available — usually 80 per cent. Additional cover aimed at bridging the remaining gap was effected by establishing facilities with a syndicate of international commercial insurers.

18

A P P E N D I X E S

A P P E N D I X I

Human Resources φ

Freedom of Information ( r j |

A P P E N D I X II

Table 1. Area of wheat

Table 2. Production of wheat

Table 3. Wheat yields

Table 4. Wheat receivals by the AWB

Table 5. Exports of bulk and non-bulk wheat

Table 6. Percentage of receivals by class

Table 7. Export wheat prices

Table 8. Exports of commercial and food aid wheat

Table 9. Exports of wheat by primary destination

Table 10. World wheat production, trade and carryover stocks

Table 11. Area, yield and production, selected other grains

A P P E N D I X I I I · P O O L S T A T I S T I C S

A pool opens when receival o f a new season i wheat commences and remains open until all o f that pool's wheat is sold and all sales proceeds are received.

Table 1. Pool payments - ASW national underwritten pools

Table 2. 1993-94 payments and 1994-95 Harvest Payments

Table 3. 1993-94 ASW pool Summary

Table 4. Other grain pools 1993-94

* For earlier statistics refer Jo previous AWB Annual Reports. All figures fo r 1993-94 are provisional. Totals may not add, due to rounding.

19

A P P E N D I X I # H U M A N R E S O U R C E S

A C H IE V IN G T H E V IS IO N

The AWB has embraced the need for change and embarked upon a

process called Achieving the Vision (ATV). A key part of this

process has been adopting an agreed Vision and Values Statement.

This is designed to guide and establish a framework for the AWB's

activities, both now and in the future. The ATV process began in

December 1993 and involved a series of meetings with all

members of staff, where they were introduced to, and invited to

comment on, the Vision and Values. This has been followed up by

staff and domestic customer surveys which are designed to identify

those issues which are impeding the AWB from achieving the

Vision. The results of these surveys have been used to assist in the

formulation of strategies to move the AWB forward as part of this

change process. Staff have also been involved with Workshop

sessions on how to best embrace the Values within their own

workplace. The ATV process is ongoing and is sponsored by the

Executive Committee and facilitated by a steering team,

comprising representatives from all Divisions across the AWB.

A W B V A L U ES

E x c e lle n c e

We strive for superior performance. We are commercial and set

clearly defined targets which are established to maximise the long­

term returns for our stakeholders. We are accountable for meeting

these targets and, indeed, for all our actions.

I n t e g r i t y

We have respect for our colleagues, our growers and customers

and for all those associated with our business. We pride ourselves

on being honest, trustworthy and completely reliable in all

our dealings.

C u s t o m e r f o c u s

We seek out and value the views of all our customers, both internal

and external. We strive to be pro-active in meeting their needs and

are creative and innovative in our dealings with them.

T e a m o r i e n t a t i o n

We support each other and thrive on open and honest

communication. We are committed to working together to seek

opportunities and find solutions that will assist us in meeting our

vision. We are a responsive organisation which embraces change

to achieve continuous improvement.

R e c o g n itio n

We encourage an environment in which access to opportunities is

determined only by aptitude and where skills and abilities are

identified and fully developed. Our contributions are measured

and rewarded in accordance with our performance.

E M P L O Y M E N T A N D T R A IN IN G

AWB staff are appointed in accordance with Section 44 of the

Wheat Marketing Act 1989. As at 30 September 1994 staff

numbers were 406, compared with 392 at the same time the

previous year. Training continues to be a priority, and this

commitment was strengthened with the appointment of a Manager

Training and Development during the year. Staff attended a wide

variety of skills and management-based training courses, both in­

house and external. Study assistance was extended to staff

undertaking job-related, graduate and postgraduate studies.

A W B E N T E R P R IS E A G R E E M E N T

During 1993-94, the first AWB Enterprise Agreement was

accepted and ratified by the Australian Industrial Relations

Commission. The Agreement followed detailed consultation with

staff, which focused on the AWB's Mission Statement and a

commitment to excellence and provides for improved productivity

and greater flexibility, both for staff and for the AWB as an

employer. The consultative process is continuing, with the

Enterprise Agreement Consultative Committee continuing to meet

to monitor the implementation of the Agreement and liaise

with staff.

E Q U A L O P P O R T U N IT Y PR O G R A M

The Equal Employment Opportunity (EEO) Committee met on a

monthly basis throughout the year. The Committee contributed to

the deliberations on the Enterprise Agreement, with a number of

issues relating to the flexibility of working arrangements accepted

and included in the Agreement.

Sexual harassment contact officers were appointed in Head Office

and all State Offices and all received appropriate training during

1993-94.

Discussions and in-house seminars are held throughout the year on

EEO-related issues and the minutes of the EEO Committee are

available to staff.

S T A F F N U M B E R S

A N D C O M P O S I T I O N

AS AT 30 SEPTEMBER

1992 1993 1994

Male Female

O C C U P A T IO N A L H E A L T H A N D S A F E T Y

During 1993-94, the AWB’s occupational health and safety policy

was extensively reviewed and updated, with new health and safety

representatives appointed and trained. As part of a commitment to

raise awareness of health and safety issues, minutes of the

meetings of the Health and Safety Committee are now circulated

to all staff. Similarly, all staff attended in-house training seminars

2 0

A P P E N D I X I · F R E E D O M O F I N F O R M A T I O N

to remind them of their responsibilities and rights under the

AWB’s Health and Safety Agreement.

Two dangerous occurrences and three accidents were reported

during the year, with none requiring further investigation or

resulting in serious injury.

Reviews have begun of seating and lighting arrangements in a

number of work areas, particularly where reconfiguration of floor

space has been undertaken since the original building design.

FREED O M O F IN F O R M A T IO N (F O I)

The AWB received one request for information under the Freedom

of Information Act during the year ended 30 September 1994. The

request, which related to documents held in a personal file, was

granted in full, and all fees were waived.

AWB documents and publications may be inspected and obtained

from the Head Office in Melbourne and from State Offices by

arrangement. All FOI inquiries, including requests for access to

documents, should be directed to the FOI Officer, between the

hours of 10.00 a.m. and 4.00 p.m. on weekdays, other than

Victorian public holidays, at 528 Lonsdale Street, Melbourne,

telephone (03) 209 2000, facsimile (03) 670 2782. Applicants are

encouraged to contact the FOI Officer with questions. Staff are

available to advise members of the public regarding the scope,

content, category, location and format of AWB information

sources, publications and documents.

Anyone intending to make a request is advised that fees are

payable for access to documents other than personal records.

C A T E G O R IE S O F D O C U M E N T S H ELD

F iles

The AWB maintains both general administrative files and others

dealing with specific activities. Files may contain working

documents, such as correspondence, or records such as

submissions and reports.

M a n u a ls

Manuals of AWB procedures have been produced in the areas of

administration, marketing, finance and accounting, human

resources and technical services.

D a t a b a s e s

A range of databases supporting the AWB’s work is maintained.

M a ilin g lis ts

Mailing lists are maintained for the dissemination of information

to the public and payments and information to graingrowers.

P U B L IC A T IO N S P R O D U C E D

D U R IN G T H E YEAR

N e w s l e t t e r s • CashCrop

9 Noodle News

9 Triticale News

9 Ingrained

9 Ear Ear (audio tape) 9 Pulse Points

B r o c h u r e s

9 King of the Bakers 9 Feed grains (various) 9 White Wheat (five languages) 9 Two by Ten by 2000

1992-93 Annual Report Pool realisation statements Enjoy Breads and Cereals (produced in conjunction with the BRI)

Varietal Control Circular (one issue for each State) Crop Report 1993-94 Season Wheat Industry Fund Prospectus AWB Enterprise Agreement

A B B R E V IA T IO N S

AGL Australian Gas and Light AGT Academy of Grain Technology ASW Australian Standard White

ATV Achieving the Vision AWB Australian Wheat Board BHAs Bulk Handling Authorities BITC Baking Industry Training Institute BRI Bread Research Institute CBA Commonwealth Bank of Australia CIS Commonwealth of Independent States CSIRO Commonwealth Scientific and Industrial

Research Organisations

CSR Colonial Sugar Refining Co. Ltd EEO Equal Employment Opportunity EEP Export Enhancement Program ESR Estimated Silo Return FOI Freedom of Information FSU Former Soviet Union GATT General Agreement on Tariffs and Trade GCA Grains Council of Australia GRDC Grains Research and Development Corporation IT Information Technology NSW New South Wales

SPU Strategic Planning Unit UN United Nations USA United States of America VIFON Vietnam Food Industries Company WIF Wheat Industry Fund

A W B IN T E L L E C T U A L P R O P E R T Y AWB Trade Marks AWB Logo Talent 2000 Two by Ten by 2000 Ear Ear Austwheat Ingrained CashCrop

A W B C o p y r ig h t S t r a p L in e s ( S lo g a n s )

‘Your One Stop Grain Shop’

‘Exporting Your Grain Not Your Profits’

A W B p a t e n t s / r e g i s t e r e d d e s ig n

Petty patent in Agitating device (Agtator )

Registered design for Agtator

21

A P P E N D I X II · A N N U A L S T A T I S T I C S

r r r r r w m * , 5 I P ® · ·

New South W estern

Season ® South W ales ® Victoria A ustralia A ustralia Q ueensland Tasmania Australia

1 9 8 4 -8 5 3 ,6 0 3 1,523 1,378 4 ,6 5 2 921 2 12,078

1 9 8 5 - 8 6 ® 3 ,648 1,488 1,432 4 .1 4 3 9 7 0 2 11.683

1 9 8 6 -8 7 ® 3 .0 9 9 1,364 1.616 4 ,2 6 0 795 2 11,135

1 9 8 7 -8 8 ® 2 ,4 6 4 1,026 1,556 3 ,3 1 2 6 4 6 1 9,005

1 9 8 8 - 8 9 ® 2 ,3 0 9 931 1,520 3 ,2 9 7 768 1 8 ,827

1 9 8 9 -9 0 ® 2 ,1 2 3 9 5 2 1,557 3 ,4 9 9 8 9 4 1 9 ,0 0 4

1 990-91 ® 2 ,1 6 6 911 1,448 3 .6 3 2 1.060 1 9 .2 1 8

1 9 9 1 - 9 2 ® 1,499 6 6 4 1,297 3 ,2 3 0 4 9 2 1 7 ,1 8 3

1 9 9 2 - 9 3 ® 1,694 821 1,419 3 .6 6 9 6 6 9 1 8 .275

1 9 9 3 - 9 4 ® 2 ,0 5 3 7 9 0 1,209 3 ,8 5 9 5 3 6 1 8 ,4 4 8

10-season average 2 ,4 6 6 1,047 1,288 3 ,7 5 3 773 1 9 ,4 8 6

Source: Australian Bureau o f Statistics.

Φ Year ended 31 March.

© Including ACT. © Excludes establishments with an estimated value o f agricultural operations less than $20,000.

© Excludes establishments with an estimated value o f agricultural operations less than $22,500.

T a b l e 2 . P r o d u c t i o n o f w h e a t ( * 0 0 0 t o n n e s )

N e w South W estern

Season ® South W ales ® Victoria A ustralia A ustralia Q ueensland Tasmania Australia

1 9 8 4 -8 5 5 ,8 0 5 2 ,6 6 6 2,031 6 ,5 8 0 1,579 4 18.666

1 9 8 5 -8 6 5 ,8 9 8 2 ,3 1 6 1,737 4 ,3 5 9 1,686 3 15,999

1 9 8 6 -8 7 ® 4 ,8 5 5 2 ,7 9 5 2 ,2 2 5 5 ,3 7 7 833 5 16,119

1 9 8 7 -8 8 ® 3 ,9 9 7 1,882 1,803 3 ,8 8 2 718 4 12,287

1 9 8 8 - 8 9 ® 4 ,1 0 5 1,691 1,361 5 ,2 2 5 1,550 2 13,935

1 9 8 9 - 9 0 ® 3 ,4 2 3 1,961 2 ,6 0 7 4 ,8 0 0 1,420 2 14,216

1990-91 ® 4 ,1 2 8 1,493 2,021 5 ,4 4 9 1,973 2 15,066

1 9 9 1 - 9 2 ® 2 ,1 8 3 1,150 2 ,141 4 ,7 3 6 3 4 4 3 10,557

1 9 9 2 -9 3 ® 3 ,5 8 3 2 ,0 1 5 2,421 5 ,9 7 9 735 5 14,739

1 9 9 3 -9 4 ® 4 ,7 7 3 2,011 2,201 6 ,7 0 2 5 5 8 4 16,249

10-season average 4 ,2 7 5 1,998 2 ,0 5 8 5 ,3 0 9 1 ,140 3 14,783

Source: Australian Bureau o f Statistics.

© Year ended 31 March.

© Including ACT.

® Excludes establishments with an estimated value o f agricultural operations less than $20,000.

© Excludes establishments with an estimated value o f agricultural operations less than $22,500.

New South W estern

Season ® South W ales ® Victoria A ustralia A ustralia Q ueensland Tasmania Australia

1 9 84-85 1.61 1.75 1.47 1.41 1.71 1.79 1.55

1 9 8 5 - 8 6 ® 1.62 1.56 1.36 1.05 1.74 2 .2 4 1.37

1986 - 8 7 ® 1.57 2.05 1.40 1.26 1.05 2 .7 4 1.45

1 9 8 7 -8 8 ® 1.62 1.84 1.16 1.17 1.11 3 .2 4 1.36

1 9 8 8 - 8 9 ® 1.78 1.82 0 .9 0 1.58 2 .0 2 2.85 1.58

1 9 8 9 - 9 0 ® 1.61 2 .0 6 1.70 1.38 1.59 3 .3 9 1.57

1990-91 ® 1.90 1.64 1.40 1.50 1.86 4 .1 0 1.63

1 9 9 1 -9 2 ® 1.45 1.73 1.65 1.47 0 .7 0 2 .8 0 1.49

1 9 9 2 -9 3 ® 2 .0 7 3 .4 6 1.71 1.63 1.10 3 .8 0 1.78

1 9 9 3 - 9 4 ® 2 .3 2 2.55 1.82 1.74 1.04 3 .6 0 1.92

10-season average 1.76 2.05 1.48 1.42 1.39 3.05 1.57

Source: Australian Bureau o f Statistics. © Year ended 31 March.

© Including ACT.

3 Excludes establishments with an estimated value o f agricultural operations less than $20,000.

4 Excludes establishments with an estimated value o f agricultural operations less than $22,500.

2 2

A P P E N D I X II · A N N U A L S T A T I S T I C S

New South W estern

Season ® S outh W ales ® Victoria Australia A ustralia Queensland Tasmania Australia

1984-85 4 ,9 7 2 2 ,9 2 8 1,922 6 ,2 9 7 1,427 - 17.546

1985-86 5 ,0 8 8 2 ,4 1 9 1,773 4 ,091 1.728 - 15,099 '

1986-87 3 ,7 7 0 3 .009 2 ,377 5 ,2 9 3 861 - 15,310

1987-88 2 ,9 1 9 1,639 1,823 3 .6 4 3 7 1 6 - 10,740

1988-89 3 ,3 0 2 1,538 1,319 5 ,1 3 8 1,657 - 12,954

1989-9 0 ® 2 ,2 7 3 2 ,0 7 3 2,711 4 ,6 1 5 1,385 - 13,057

1990-91 ® 2 ,9 5 2 1,244 1,972 5 ,2 7 9 1,935 - 13.382

1991-92 ® 749 745 2 .0 4 0 4 ,4 1 6 125 - 8,075

1992-93 ® 2 ,4 9 8 2,061 2 ,4 5 0 5 ,8 5 5 720 - 13,584

1993- 9 4 ® 3 ,8 5 6 2,101 2 ,0 3 9 6 ,5 3 9 588 - 15,123

10-season a v e r a g e 3 ,2 3 8 1,976 2 ,043 5 ,1 1 7 1,114 - 13.487

Source: Australian Wheat Board.

Φ Deliveries accepted by Authorised Receivers for the AWB. State totals include deliveries o f wheat grown interstate.

Includes grower to buyer transactions prior to 1989-90.

© 1 October to 30 September. ® Including ACT.

© Including Trading Division receivals.

T a b l e 5 . E x p o r t s o f b u l k a n d n o n - b u l k w h e a t ®

N um ber Total of bulk Total of non-bulk Total

State and p o rt of vessels ® shipm ents shipm ents shipm ents

(’000 tonnes) (Ό00 tonnes) (Ό00 tonnes)

Queensland 35 508 - 508

Gladstone 2 10 - 10

Brisbane 33 498 - 498

Mackay - - - -

New South Wales 98 2,242 - 2,242

Newcastle 50 976 - 976

Port Kembla 48 1,266 - 1,266

Victoria 96 1,968 1 1.969

Geelong 56 1,166 1 1.167

Portland 40 802 - 802

South Australia 151 2,420 2 2,422

Adelaide 36 599 2 601

Port Giles 10 104 - 104

Port Lincoln 40 832 - 832

Port Pirie 34 440 - 440

Thevenard 7 68 - 68

Wallaroo 24 377 - 377

Western Australia 303 6.528 4 6.532

Albany 40 912 - 912

Bunbury - - - -

Esperance 16 442 - 442

Geraldton 67 1,313 - 1,313

Fremantle 180 3.861 4 3,865

Total 552 13,666 7 13,673

S o u r c e : AWB.

L I October 1993 to 30 Septem ber 1994: excludes unsold stock held off shore at Jebel Ali. © Includes two port loadings: applies only to bulk wheat shipments.

2 3

A P P E N D I X I I · A N N U A L S T A T I S T I C S

T a b l e 6 . P e r c e n t a g e o f

Season® 1984-85 1985-86 1986-87

S tate

New S outh W ales ®

APH ® 20.4 8.8 10.7

AH® 18.5 9.9 22.5

ASW ® 57.0 44.0 64.7

AGP® 4.1 37.3 2.1

V ictoria

AH 5.6 4.3 5.9

ASW 93.6 76.4 80.4

AGP 0.8 19.3 13.7

S outh A ustralia

AH 22.2 15.6 10.7

ASW 74.5 78.6 86.4

AGP 3.3 5.8 2.9

W estern A ustralia

AH 3.2 10.8 1.4

ASW 95.4 86.4 97.5

AGP 1.4 2.8 1.1

Q ueensland

APH 7.5 14.0 32.0

AH 39.4 36.2 48.0

ASW 41.0 42.8 15.7

AGP 12.1 7.0 4.3

Tasm ania

ASW 70.0 - -

AGP 30.0 - -

A ustralia

APH 6.4 4.5 4.4

AH 13.0 13.0 11.7

ASW 77.5 64.7 79.6

AGP 3.1 17.8 4.3

m i

1987-88 1988-89 1989-90 1990-91

16.3 15.6 16.6 5.2

20.9 22.9 26.6 13.3

61.7 54.8 55.1 81.5

1.1 6.7 1.7 -

10.6 17.4 6.5 18.6

89.1 72.8 93.3 81.10

0.3 9.8 0.2 0.4

14.5 23.2 7.8 22.9

83.7 73.9 90.3 73.3

1.8 2.9 1.9 3.8

6.3 2.1 1.9 3.4

87.6 85.7 93.4 88.0

6.1 12.2 4.7 8.6

43.8 19.0 21.9 9.9

37.2 40.8 40.5 35.8

17.6 35.8 23.5 50.6

1.4 4.4 14.1 3.7

7.3 6.4 5.3 2.6

14.4 16.3 12.2 14.6

75.5 68.7 78.7 78.3

2.8 8.6 3.8 4.5

1991-92 1992-93 1993-94 10-season average

12.6 10.7 11.3 12.82

28.4 16.6 11.2 19.03

56.4 39.3 73.2 58.77

2.6 33.9 4.3 9.38

20.9 1.6 9.7 10.11

78.8 21.4 83.0 76.98

0.3 77.0 7.3 12.91

13.4 1.5 21.1 15.29

83.3 90.1 68.9 72.86

3.3 82.8 10.0 11.85

3.7 1.4 3.8 3.83

88.3 90.1 86.6 89.89

8.0 8.5 9.6 6.28

6.4 61.7 65.9 34.23

12.9 28.9 10.4 33.06

19.2 8.0 9.0 26.29

1.5 1.4 14.7 6.42

- - - -

2.2 5.2 5.5 4.89

10.2 5.6 9.1 11.97

82.1 52.6 77.3 73.58

5.5 36.6 8.1 9.56

Source: Australian Wheat Board.

Φ I October to 30 September, includes grower-to-buyer sales prior to 1989-90. ® Includes ACT. ® Australian Prime Hard wheal.

© Australian Hard wheat.

© Australian Standard White, including Australian Durum and Soft wheat.

© Australian General Purpose, including Feed wheat.

2 4

A P P E N D I X I I · A N N U A L S T A T I S T I C S

b b ' g ■ g g g m m

Year ® Average price -

1 984-85 145.22

19 8 5 -8 6 127.15

1 986-87 111.62

19 8 7 -8 8 1 3 7 .7 2

19 8 8 -8 9 175.58

1 9 8 9 -9 0 156.45

1990-91 128.17

1 991-92 164.47

1992-93 1 5 4 .7 0

1 993-94 156.81

Source: AWB.

© 1 October to 30 September.

@ Simple averages of daily asking prices for ASW; free on board.

C om m ercial Food aid

Year’ w heat w heat Total

1984-85 14,263 3 0 7 14,570

1985-86 15,709 253 15,962

1986-87 15,336 248 15,584

1987-88 9 ,6 0 5 255 9 ,8 6 0

1988-89 11,010 2 7 7 11,287

1989-90 10,353 311 10.664

1990-91 11,628 144 11,772

1991-92 6 ,8 8 7 228 7,115

1992-93 10.079 172 10.251

1993-94 13,465 2 0 8 13.673

Source: AWB. Φ ] October to 30 September.

2 5

A P P E N D I X I I · A N N U A L S T A T I S T I C S

Year ® 1991-1992 1992-93 1993-94

P rim ary destination

Abu Dhabi 125,399 103,803 107,396

Afghanistan - 7,695 7.300

Bahrain - 18,030 "

Bangladesh 111,181 61,232 96,202

Botswana - - 14.862

Cambodia 5,439 - 10.595

China 104,982 583,300 1,338,216

Columbia - - 207,819

DPR Korea - 63,000 -

Dubai 43,581 125,602 124,519

Ecuador - - 136,771

Egypt 1,640,616 1,320,318 1,358.043

Ethiopia 30.000 18,600 23,800

Fiji 54,923 58,243 89,020

France - - 67

India 850,430 1,049,902 -

Indonesia - 974,010 1.187,478

Iran 879,129 1,118.996 2,592,500

Iraq - 105.000 334.701

Italy 1,032,583 - 83.950

Japan 497,349 1,114,126 1,178,963

Korea, Rep Of - 975.179 1,245,526

Malaysia 412,185 - 687,191

Mauritius 16,332 646.604 23.058

Morocco - 30,613 19,573

Mozambique - - 24,000

New Caledonia 14,748 5,800 19.595

New Zealand 94,914 193,535 221,084

Oman 113,100 150,617 186,501

Pakistan 343,841 216,527 43,450

Papua New Guinea 89.548 115,882 115,683

Philippines 32,808 134,612 201,811

Qatar 41,275 44,004 43,790

Singapore 81,492 143,918 149,269

Solomon Islands 6,950 8,496 6,390

Somalia 4,000 - -

South Africa 67,800 31,663 -

Sri Lanka 5,001 8,661 60,720

Tahiti 165 90 109

Taiwan 16,308 33,042 109,309

Tanzania - 5,350 -

Thailand 76,149 81.615 175,716

Turkey - - 44,000

United Kingdom 8 - 62

Vietnam 49,605 37,742 63.987

West Samoa 72 32 36

The Yemens 373,598 233,199 322,142

Commonwealth Of Independent States (CIS) - 417,208 1,018,654

Total 7,115,211 10,251,007 13,673,858

Source: AWB.

1 Commercial and food-aid shipments; excludes unsold stock held off shore. © 1 October to 30 September.

2 6

A P P E N D I X I I I · P O O L S T A T I S T I C S

B i H l

State/Commodity

Date opened/ announced

Date of closure

1993-94 Proposed

Final Payment

Net Harvest Payments - delivered

Post­ harvest Payments (i)

Post­

Payments (2)

Subsequent Net grower payments payments to date (l) + (2) -a t port

• Remaining equity

payments

Final

net equity - delivered

New South Wales

Sorghum 24 Jan 94 31 July 94 TBA 125.00 — — - 125.00 20.00 145.00

Victoria

Australian Hard 1 15 Nov 93 31 July 94 TBA 135.00 25.00 10.00 35.00 170.00 5.00 175.00

Canola 15 Nov 93 14 Mar 94 11 Oct 94 260.00 50.00 — 50.00 310.00 21.00 331.00

Chick-peas 15 Nov 93 14 Mar 94 11 Oct 94 280.00 50.00 - 50.00 330.00 25.20 355.20

No. 2 Faba beans 15 Nov 93 14 Mar 94 11 Oct 94 150.00 20.00 — 20.00 170.00 14.75 184.75

No.l Field-peas — Pool A 15 Nov 93 09 Dec 93 11 Oct 94 168.00 22.00 22.00 190.00 15.10 205.10

No.2 Field-peas — Pool A 15 Nov 93 09 Dec 93 11 Oct 94 165.00 20.00 20.00 185.00 17.75 202.75

No.l Field-peas — Pool B 09 Dec 93 14 Mar 94 11 Oct 94 168.00 17.00 17.00 185.00 15.70 200.70

No.2 Field-peas — Pool B 09 Dec 93 14 Mar 94 11 Oct 94 165.00 15.00 15.00 180.00 17.50 197.50

Lupins 15 Nov 93 14 Mar 94 11 Oct 94 140.00 20.00 — 20.00 160.00 17.00 177.00

Oats 19 Oct 93 14 Mar 94 TBA 62.00 3.00 — 3.00 65.00 20.00 85.00

Queensland

Sorghum — Pool A 24 Jan 94 27 Apr 94 TBA 145.00 7.00 7.00 152.00 8.00 160.00

Sorghum — Pool B 27Apr 94 31 Jul 94 TBA 116.00 15.00 — 15.00 131.00 24.00 155.00

South Australia

Chick-peas 15 Nov 93 14 Mar 94 11 Oct 94 280.00 50.00 — 50.00 330.00 25.20 355.20

No. 1 Faba beans 15 Nov 93 14 Mar 94 11 Oct 94 155.00 25.00 — 25.00 180.00 10.00 190.00

No. 2 Faba beans 15 Nov 93 14 Mar 94 11 Oct 94 150.00 20.00 — 20.00 170.00 14.75 184.75

No. 1 Field-peas W/A — Pool A 15 Nov 93 09 Dec 93 11 Oct 94 168.00 22.00 22.00 190.00 15.10 205.10

No. 2 Field-peas E/P — Pool A 15 Nov 93 09 Dec 93 11 Oct 94 165.00 20.00 20.00 185.00 17.75 202.75

No. 2 Field-peas W/A — Pool A 15 Nov 93 09 Dec 93 11 Oct 94 165.00 20.00 20.00 185.00 17.75 202.75

No. 1 Field-peas W/A — Pool B 09 Dec 93 14 Mar 94 11 Oct 94 168.00 17.00 _ 17.00 185.00 15.70 200.70

No. 2 Field-peas E/P — Pool B 09 Dec 93 04 Feb 94 11 Oct 94 165.00 15.00 _ 15.00 180.00 17.50 197.50

No. 2 Field-peas W/A — Pool B 09 Dec 93 14 Mar 94 11 Oct 94 165.00 15.00 _ 15.00 180.00 17.50 197.50

Lupins W/A 15 Nov 93 14 Mar 94 II Oct 94 140.00 20.00 — 20.00 160.00 17.00 177.00

Lupins E/P 15 Nov 93 04 Feb 94 11 Oct 94 140.00 20.00 — 20.00 160.00 17.00 177.00

Triticale (ADL) — Pool A 15 Nov 93 14 Mar 94 TBA 88.00 7.00 5.00 12.00 100.00 10.00 110.00

Triticale (ADL) — Pool B 15 Nov 93 14 Mar 94 TBA 83.00 5.00 5.00 10.00 93.00 12.00 105.00

Triticale (E/P) 15 Nov 93 14 Mar 94 TBA 88.00 7.00 5.00 12.00 100.00 10.00 110.00

W estern Australia

Australian Hard 1 15 Nov 93 31 Jul 94 TBA 143.00 25.00 8.00 33.00 176.00 3.00 179.00

Net Harvest Payments represents gross Harvest Payments less receival fees but before deductions for levies and freight. The remaining final equity for all the pulses was paid on 11 October 1994.

The remaining final equity for the feed grains and the hard pools are an estimate only.

TBA — To be announced.

3 0

φ 11 INDEX

S E C T I O N I · I N T R O D U C T I O N

I . I S C O P E

The attached Financial Statements present the aggregated

financial results and status for all of the various activities of the

AWB for the financial year ended 30 September 1994.

The principal activity is operating grain pools whereby individual

growers deliver grain to the AWB, in accordance with certain

standards relating principally to quality and potential end use, for

sale on the domestic and international markets. The total

proceeds of the sales, less the actual costs of funding, storage,

handling, and the AWB’s own operating expenses are then

returned as quickly as possible to growers by way of initial

advances immediately after harvest and subsequent payments

in accordance with the cash flows from the realisation of the

total receivals. The pools of each season are treated as

separate businesses.

The other AWB businesses are:

• the domestic Trading Division which purchases grain outright

for cash and sells on normal commercial terms;

• the Academy of Grain Technology which acts as an analytical

and research laboratory for both the AWB and other clients;

• the Wheat Industry Fund (WIF) which is being accumulated

as a capital base for the industry and invests in an

appropriate portfolio of long-term project investments and

short-term marketable securities.

In Section 8 the total Income and Expenditure, Balance Sheet and

Cash Flow statements provided in Sections 4, 5 and 6 are

analysed into the various business activities. This section also

provides a breakdown of the activities of all the extant pools from

the time they were opened through to 30 September 1994. What

it does not do is to project what the final outcome from the pools

will be.

1 . 2 A C C O U N T I N G P O L I C I E S

The accounting policies of the AWB, which are set out in

Section 3, are similar to most other commercial organisations and

they comply with all of the relevant accounting standards laid

down by the professional accounting bodies.

1 . 3 F I N A N C I A L H I G H L I G H T S

• Sales Export tonnage increases 33 per cent from

10.228 million tonnes to 13.641 million tonnes. Domestic

tonnage increases 11 per cent from 1.853 million tonnes

to 2.048 million tonnes. Total value up 13 per cent from

$2,415m to $2,738m.

• Shipping revenue Net result up from $3.16m to $6.50m.

• Exports on credit terms up 75 per cent but cost of credit

insurance contained to a 38 per cent increase, and closing

balance on term debtors only increased marginally.

• Stocks on hand at year end down by 12 per cent in volume to

3.778 million tonnes but up in value by $82m (13 per cent).

• Investment in Moora Pulp and Paper Company Pty Ltd

(MPP) sold after year end. An amount of $888,000 was

written off prior to sale.

• Payments to growers from new pool up from $ 1,532m to

$ 1,680m.

• Three pools closed and old pools payments total $303m.

• Growers’ residual interests (GRI) in pools reduced from

$429m to $332m as a result of the increased payments with

borrowings down from $ 1,352m to $1,156m.

F U N D I N G A N D M A J O R

A S S E T S AT Y E A R E N D

1990 1991 1992 1993 1994

IGRI j ^ j B orrow ings

0^ Receivables

3 2

S E C T I O N 2 e S T A T E M E N T B Y B O A R D M E M B E R S

Before the financial statements were prepared steps were

taken to:

(i) cause all known bad debts to be written off and make

adequate provision 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 realise;

or

(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 to so 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 being misleading will be included.

At the time of completion of the Financial Statements:

(i) there does not exist any charge on assets securing the liability

of any other person or organisation which has arisen since

30 September 1994; (ii) no contingent or other liability has become enforceable or is

likely to become enforceable on or before 30 September 1994

which will or may substantially affect the ability of the AWB

to meet its obligations as and when they fall due;

(iii) no circumstances have arisen nor information become

available since the end of the financial year which would

render any amount stated in the Financial Statements

misleading;

(iv) there are reasonable grounds to believe that the AWB will be

able to pay its debts as and when they fall due.

In the opinion of the members of the AWB the accompanying:

• Statement of Income and Expenditure for the year ended

30 September 1994;

• Balance Sheet at 30 September 1994;

• Cash Flow Statement for the year ended 30 September 1994;

• Notes to and forming part of the Financial Statements for the

year ended 30 September 1994.

(a) show fairly the operating results of the Board for the year

ended 30 September 1994.

(b) show fairly the state of affairs as at 30 September 1994;

(c) show fairly the cash flows for the year ended

30 September 1994;

(d) have been made out in accordance with all Statements of

Accounting Concepts and applicable Accounting Standards;

and

(e) have been made out in accordance with the provisions of the

Wheat Marketing Act 1989 and the Guidelines for Financial

Statements of Public Authorities and Commercial Activities

(including approved variations) issued by the Minister

for Finance.

DATED AT MELBOURNE THIS 29th DAY OF NOVEMBER 1994

and SIGNED ON BEHALF OF THE AUSTRALIAN WHEAT BOARD IN ACCORDANCE

C E CONDON Chairman

T J FLUGGE Deputy Chairman Chairman Audit Committee

A V CONNON Senior Manager Finance

33

S E C T I O N 3 · S U M M A R Y O F P R I N C I P A L A C C O U N T I N G P O L I C I E S

This section comprises Note 1 of the notes to and forming part

of the Financial Statements and is presented here to explain the

bases for the ensuing statements.

(a) Activities covered

These financial statements present the consolidation of all

AWB activities including underwritten pools, Trading

Division cash and pool activities, reserves and the WIF.

Inter-divisional transactions and balances have been

eliminated. (The separate activities are disaggregated

in the statements in Section 8).

The principal area of activity is the operation of separate

pools for wheat of each season which involves the

aggregation of all the revenues and costs resulting from the

receival, storage, transport and sale of deliveries to the pool,

the making of advance payments to growers and a final

distribution of the growers’ residual interests once the net

proceeds have been collected. The life of each pool extends

over a number of years, so they are run in tandem and

accounted for as separate businesses, as are the other AWB

activities. A summary of the results to date for each extant

pool is also presented in Section 8.

(b) Basis of accounting

The Financial Statements have been prepared on a ‘going

concern’ basis using accrual accounting and the historical

cost convention, except for certain assets which are stated

at valuation.

The accounting policies adopted are consistent with those of

the previous year unless otherwise specified, however, the

presentation of the Financial Statements has been changed

from that of the previous year to clarify the information

provided and where appropriate comparative balances have

been reclassified accordingly.

In particular, the Financial Statements comply with the

provisions of:

(i) the Wheat Marketing Act 1989 (WMA);

(ii) the Guidelines for Financial Statements of Public

Authorities and Commercial Activities issued by the

Minister for Finance;

(iii) all applicable Statements of Accounting Concepts and

Accounting Standards issued by the Australian Society of

Certified Practising Accountants and the Institute of

Chartered Accountants in Australia.

The Minister for Finance has also issued an order varying the

requirements of his Guidelines to the extent that it enables the

separate disclosure in the equity section of the Balance Sheet

of ‘Growers’ residual interests’ and ‘WIF’.

(c) Cash

For the purpose of the Statement of Cash Flows, cash

includes cash on hand and in banks, net of outstanding bank overdrafts.

(d) Employees

In accordance with sections 44 and 45 of the WMA the terms

and conditions of employment of the Managing Director and

all staff are determined by the Board.

Provision is made for long-service leave and annual leave

estimated to be payable to employees on the basis of their

terms of employment and statutory requirements. Vested

employee entitlements are classified as current liabilities.

(e) International transactions

Translation of foreign currency transactions

Transactions in foreign currencies are converted to local

currency at the rate of exchange ruling at the date of

the transaction.

Amounts payable to and by the AWB that are outstanding at

balance date and are denominated in foreign currencies have

been converted to local currency using rates of exchange

ruling at the end of the financial year.

Except for certain specific hedges, all resulting exchange

differences arising on settlement or restatement are brought to

account in determining the profit or loss for the financial year.

Transaction costs, premiums and discounts on forward

currency contracts are deferred and amortised over the life of

the contract.

Specific hedges

Futures and option contracts are utilised to hedge exposures

on unpriced wheat and the interest rate on borrowings.

Exchange gains or losses on the hedging transactions arising

up to the date of purchase or sale, and costs, premiums and

discounts relative to the hedging transaction are included with

the purchase or sale. Exchange gains or losses arising from

the hedge transaction after that date are taken to the profit and

loss account.

As a further refinement of this policy, during 1993-94 any

gains or losses on borrowings which are specific hedges have

also been treated in this manner.

(f) Inventories

Inventories are valued at the lower of cost or net realisable

value. Pool grains are purchased on the basis that the net

surplus of sales revenue over expenses for the respective pool

will be remitted to the growers. Consequently, cost equates

as far as can be reasonably determined to net realisable value.

The AWB also holds inventories of grains purchased outright

for cash.

(g) Investments

Investments are made in accordance with guidelines approved

by the Minister for Primary Industries and Energy and in

accordance with Section 70 of the WMA.

Short-term investments held for resale are brought to account

on a market value basis. Negotiable securities which are

intended to be held until maturity and have a redemption value,

are stated at cost plus interest accrued on a straight-line basis.

3 4

S E C T I O N 3 · S U M M A R Y O F P R I N C I P A L A C C O U N T I N G P O L I C I E S

Long-term investments are stated at cost. Where the cost

exceeds the recoverable amount, the investment is written

down to this recoverable amount.

(h) Payments to growers

Advance payments to growers in respect of their entitlement

to the net surplus realisable from each pool into which they

have made deliveries are made in accordance with the WMA

and are shown as deductions from growers’ equity in the

Balance Sheet.

(i) Property, plant and equipm ent

Property, plant and equipment are carried at cost or at an

independent valuation except for items costing $1000 or less

which are expensed in the year of acquisition.

Depreciation is provided on a straight-line basis for all

property, plant and equipment other than freehold land from

the date at which the asset becomes available for use.

Depreciation charges are calculated to allocate cost or

valuation, less estimated residual value at the end of the

useful lives of the assets against revenue over those estimated

useful lives. Depreciation rates are reviewed annually, except

those for leasehold improvements, which are based on the

terms of the specific leases.

(j) Recoverable am ount

Non-current assets are not revalued to an amount above their

recoverable amount, and, where carrying values exceed this

recoverable amount, assets are written down. In determining

recoverable amount, the expected net cash flows have been

discounted to their present value using a market-determined

risk-adjusted discount rate.

(k) Research and development expenditure

Research and development expenditure incurred during the

year is charged against revenue, except where future benefits

directly recoverable are expected, beyond any reasonable

doubt, to exceed those costs.

(l) Sales revenue

Revenue from sales made on commercial terms is recognised

when title for the commodity transfers to the purchaser. In the

case of export sales, the bill of lading (shipment) date is taken

as transaction date unless title is to pass at a materially

different time.

Although the AWB enters into long-term contracts for the

supply of grain, it would be inappropriate to use the date of

contract as the relevant date for recognising sales because the

contracts provide for variations in volume and timing which

can generally only be clarified when the buyer and AWB

arrange shipment and title has not yet passed.

(m ) Taxation

The AWB is exempt from income tax in accordance with

Section 79 of WMA, but not from other Commonwealth

taxation. There are, therefore, no assets or liabilities created

by tax effect accounting.

The same section also exempts the AWB from State or

Territory taxation except as provided by the Regulations made

under the Act.

35

S E C T I O N 4 · I N C O M E A N D E X P E N D I T U R E S T A T E M E N T

F O R Y E A R E N D E D 3 0 S E P T E M B E R 1 9 9 4

1993

$’000 N ote

1 9 9 4

$’000

2,415,953

OPERATING REVENUE

2 2,738,019

47,709 Shipping revenue 3 66.185

46,695 Interest income 4 27,752

2,051 Other 5 7,897

2,512,408 TOTAL OPERATING REVENUE 2,839,853

(178.501)

OPERATING EXPENSE

Movement in pool grain inventories 12 (54,659)

355,015 Cost of sales 12 283,017

44.546 Shipping expense 3 59,689

395.570 Direct costs — storage, handling, freight, etc. 6 514,790

58,923 Interest expense 7 62,055

47,924 AWB operating expenses 8 55.198

(6,336) Other 9 33,163

717,141 TOTAL OPERATING EXPENSE 953,253

1,795,267 OPERATING SURPLUS 1,886,600

300,049

GROWERS’ RESIDUAL INTERESTS

at the beginning of the financial year 21 429,409

42,600

2,137,916

Prior period adjustment relating to AAS20 adoption

TOTAL AVAILABLE FOR APPROPRIATION 2,316,009

1,500,820

Pool payments to growers

— Current season initial 21 1.671,830

79,850 — Prior seasons subsequent 21 91,150

107,769 — Prior seasons final 21 220,631

5,578

Appropriated to / (from)

— Reserves 21 (8.491)

14,490 — WIF 20 8,426

429,409 — Growers’ residual interests 21 332.463

2,137,916 TOTAL APPROPRIATED 2,316,009

The above Income and Expenditure Statement should be read in conjunction with the accompanying notes.

36

S E C T I O N 5 · B A L A N C E S H E E T

A S A T 3 0 S E P T E M B E R 19 9 4

1993 1 9 9 4

$’000

CURRENT ASSETS

N ote $’000

523 Cash 2,713

397,988 Receivables 10 406,111

862,481 Investments 11 614,904

611.378 Inventories 12 693,322

38,666 Other 13 25,877

1,911,036 TOTAL CURRENT ASSETS 1,742,927

NON-CURRENT ASSETS

25,438 Receivables 10 21,618

2,774 Investments 11 2,119

36,285 Property, plant and equipment 14 38,403

64,497 TOTAL NON-CURRENT ASSETS 62,140

1,975.533 TOTAL ASSETS 1,805,067

CURRENT LIABILITIES

46.767 Creditors 15 73,377

1,034,886 Borrowings 16 1.155,622

3.255 Provisions 17 4.807

(44,245) Other 18 21.029

1,040,663 TOTAL CURRENT LIABILITIES 1,254,835

NON-CURRENT LIABILITIES

317,238 Borrowings 16

1.997 Provisions 17 753

319,235 TOTAL NON-CURRENT LIABILITIES 753

1,359,898 TOTAL LIABILITIES 1,255,588

615,635 NET ASSETS 549,479

EQUITY

24,595 Reserves 19 16.104

161,631 WIF 20 200,912

429.409 Growers’ residual interests 21 332.463

615.635 TOTAL EQUITY 549,479

The above Balance Sheet should be read in conjunction with the accompanying notes.

37

S E C T I O N 6 e S T A T E M E N T O F C A S H F L O W S

F O R Y E A R E N D E D 3 0 S E P T E M B E R 1 9 9 4

1993 1 9 9 4

A$ Total A$ Total

equivalent cash equivalent cash

of US$ flows of US$ flows

cash flows cash flows

$’000 $’000 N ote $'000 $’000

CASH FLOW S FROM OPERATING ACTIVITIES

1,853,025 2,279,950 Inflows — Receipts from customers 2,124.991 2.636.733

16,760 45,873 — Interest received 16.610 26.537

42,872 44,915 — Exchange variation 13.723 12.971

161 — Other

Outflows — Payments to suppliers and employees in respect of —

(9.817) (338.415) — grain purchases (5.275) (308.659)

(3,449) (406,466) — direct costs (3,985) (490,353)

(21,438) (60,403) — interest (35,201) (64.328)

(4,131) (8,919) — export credit insurance (5,856) (12.387)

(252) (40,074) — AWB operating expenses 664 (48.020)

(4,312) (1,016) — other (147)

1,869,258 1,515,606 Net cash provided by operating activities 22 2,105.671 1.752.347

CASH FLOW S FROM INVESTING ACTIVITIES 1.083 inflows — Sale of property, plant and equipment 193

— Proceeds from short-term deposits/

30,525,702 38.854,653 marketable securities 19,893,470 29.629.697

(8,169) Outflows — Acquisition of property, plant and equipment (9.650)

(63) — Purchase of equity investments (233)

— Placement of short-term deposits/purchase

(30,444,495) (39,157,965) of marketable securities (19,662,241) (29,560,004)

81,207 (310.461) Net cash provided/(used) by investing activities 231,229 60.003

CASH FLOW S FROM FINANCING ACTIVITIES 36.823 Inflows — WIF contributions 39.626

1,569,287 8,701,514 — Borrowings - non-related parties 3,411,472 15,342.293

(1,666.120) Outflows — Pool payments to growers (1,974,276)

— WIF Buyback and Cashout (8.770)

— Borrowing repayments to

(1.320,120) (8,277,999) non-related parties (3,518,340) (15.208.271)

(2,199,513) — US$ portion of foreign exch. transactions (2,230.064)

(1.950,346) (1,205,782) Net cash providedZ(used) by financing activities (2.336,932) (1.809.398)

119 (637) NET INCREASEZ(DECREASE) IN CASH HELD (32) 2,952

65 396 CASH AT 1 OCTOBER 1993 184 (241)

184 (241) CASH AT 30 SEPTEMBER 1994 23 152 2,711

The above Cash Flow Statement should be read in conjunction with the accompanying notes.

38

S E C T I O N 7 B · N O T E S T O T H E B A L A N C E S H E E T

©

1993 1 9 9 4

$’000

P ro p erty reserve

$’000

14,388 Opening balance 1 October 14,015

(373) Transfer of net earnings (1.533)

14,015 Closing balance 30 September 12,482

Early final paym ent reserve

4,629 Opening balance 1 October 10,580

5,951 Transfer of net earnings 512

Net transfers to underwritten pools (7,470)

10.580 Closing balance 30 September 3.622

24,595 Total reserves 16,104

Under Section 29 of the Wheat Marketing Act 1984, Early Final Payment (Cashout) is a facility whereby wheat growers can apply to have their estimated remaining equity in a wheat pool paid before the pool is wound up.

The Early Final Payment Reserve was established in the 1986-87 financial year, in accordance with Section 7 of the Wheat Marketing Act 1984 to account for differences between the estimated final payment(s) and actual final payment(s). The same facility is available under Section 64 of the WMA.

The Reserve was utilised in January 1994 to fund the shortfall of certain direct costs incurred in respect of the 1989-90 pool. Any future monies received from Iraq in respect of the credit sales by the 1989-90 pool will be similarly apportioned to repay the Early Final Payment Reserve.

©

1993 1 9 9 4

$’000 $’000

110,318 Opening balance 1 October 161,631

36,961 Growers’ contributions 39,774

(138) Under $50 refunds, other payments and revaluation (107)

Tradeable stock (represented by 5,658,713 units @ $1.557173) (8.812)

14,490 Net earnings appropriated 8.426

161,631 Closing balance 30 September 200,912

During the year, WIF equity-holders were given the opportunity to sell 5 per cent of their equity back to the AWB. This was known as the ‘Buyback’ offer which has resulted in payments to the value of $8.4m being made to equity-holders. During the year a further $0.4m was paid to growers in hardship and distress; this payment was referred to as ‘Cashout’.

4 7

S E C T I O N 7 B · N O T E S T O T H E B A L A N C E S H E E T

o

G R O W E R S ’ R E S I D U A L I N T E R E S T S

O pening balance Initial S ubsequent Final

A pprop­ riations

operating

A pprop­ riations (to)/from

Closing balance

1 O c t 1993 paym ents paym ents paym ents surplus reserve 30 S ept 94

$’000 $'000 $’000 $’000 $’000 $’000 $’000

Pool

1986-87 1989- 90

1990- 91

1991- 92

1992- 93

(5)

(980)

113,146 88,417 223,657 (82.796)

638

(118,617) (101.298) (132)

5

(7,409) 5,471 12,881 (49,882)

7,751

316 91.163

1993-94 5,174 (1.671,794) (8,354) (1,222) 1,916,684 424 240,912

1994-95 (36) 424 388

Total - 1993-94 financial year 429,409 (1,671,830) (91.150) (220,631) 1.878.174 8.491 332,463

Total - 1992-93 financial year 342,649 (1,500.820) (79,850) (107,769) 1,780,777 (5.578) 429,409

It should be noted that the closing balances record only the financial status of each pool as at 30 September resulting from transactions completed or in progress but not contracts entered into but unperformed. Consequently, the results for all pools are anticipated to produce positive equities prior to final realisation.

S E C T I O N 7 C · N O T E S T O T H E C A S H F L O W S T A T E M E N T

φ

R E C O N C I L I A T I O N O F O P E R A T I N G C A S H F L O W S T O O P E R A T I N G S U R P L U S

1993 $’000

1,795,267

37,212 5,026 270 235 (8,284)

732

35,191

(151,377) (189,394) (3,396) 1,464

27,851

(314,852)

1,515,606

Operating surplus per income and expenditure statement Add back / (deduct) Non-cash and investing items — Unrealised foreign exchange

— Depreciation of property plant and equipment — Provision for long-service leave — Provision for annual leave —- Provision for bad and doubtful debts — (Profit)/loss on sale of property plant and equipment

Movements in working capital — Receivables (gross) — Inventories — Other current and non-current assets — Creditors — Other current liabilities

Net cash provided by operating activities

1 9 9 4 $’000

1,886,600

(11.401) 6,936 101 208 (26.385)

281

(30.260)

(3,016) (82.131) 20,042 (3,171) (35,717)

(103,993)

1,752,347

4 8

S E C T I O N 8 · S T A T E M E N T S B Y B U S I N E S S A C T I V I T Y

©

1993 1 9 9 4

m arketing activities $’000 Reserves

$’000

W IF $’000

CURRENT ASSETS

m arketing activities $’000

Reserves $’000

WIF $’000

516 7 Cash 1,419 1,294

397,485 503 Receivables 401,008 3,959 1,144

693,437 10,580 158,464 Investments 414,550 3,622 196,732

611,378 Inventories 693,322

81,023 Other 25,877

1,783,839 10,580 158,974 TOTAL CURRENT ASSETS 1,536,176 7,581 199,170

NON-CURRENT ASSETS

25.438 Receivables 21,618

2,774 Investments 2,119

36,285 Property, plant and equipment

Other

38,403

25,438 36,285 2,774

TOTAL NON-CURRENT ASSETS 21,618 38,403 2,119

1,809,277 46,865 161,748 TOTAL ASSETS 1,557,794 45,984 201,289

CURRENT LIABILITIES

44,415 33 117 Creditors 71,866 1,134 377

1,012.689 22,197 Borrowings 1,126,947 28,675

3,215 40 Provisions 4,736 71

314 Other 21,029

1,060,633 22,270 117

TOTAL CURRENT LIABILITIES 1,224,578 29,880 377

NON-CURRENT LIABILITIES

317,238 Borrowings

1,997 Provisions 753

319,235

TOTAL NON-CURRENT LIABILITIES 753

1,379.868 22,270 117 TOTAL LIABILITIES 1,225,331 29,880 377

429,409 24,595 161,631 NET ASSETS 332,463 16,104 200,912

429,409

24,595

161,631

EQUITY Reserves WIF Growers’ residual interests 332,463

16.104

200,912

429,409 24,595 161,631 TOTAL EQUITY 332,463 16,104 200,912

51

S E C T I O N 8 · S T A T E M E N T S B Y B U S I N E S S A C T I V I T Y

©

H i ·

1993 1 9 9 4

m arketing activities $’000 Reserves

$’000

WIF $’000

m arketing activities $’000

Reserves $’000

WIF $’000

CASH FLOWS FROM OPERATING ACTIVITIES

2,279,950 35,142 44,915 (4.642)

242 10,489

4,803

Inflows — Receipts from customers — Interest received — Exchange variations — Other

2,628,757 26,273 12,715 (10,454)

7.976 137 256

127

10.454

(.338.415) (406,466) (59,236) (8,919)

(39,122) (1.016)

(1,167)

(59) (893)

Outflows — Payments to suppliers and employees in respect of — • grain purchases

• direct costs • interest • export credit insurance • AWB operating expenses • Other

(308,659) (490,353) (63,523) (12,387)

(46,372) 3,909

(805)

(4.056)

(1,648)

1,502.191 (984) 14,399

Net cash provided by operating activities 1,739,906 3.508 8.933

CASH FLOWS FROM INVESTING ACTIVITIES

78 1,005

Inflows — Sale of property, plant and equipment — Sale of equity investments

— Proceeds from short-term deposits/marketable securities 29,629,697

193

(246.188)

(8,169)

(5,951)

(63)

(51.173)

Outflows — Acquisition of property, plant and equipment — Purchase of equity

investments — Placement of short term deposits/purchase of marketable securities (29.521,736)

(9.650)

(233)

(38.268)

(246,110) (13.115) (51,236)

Net cash provided/!used) by investing activities 107.961 (9.457) (38,501)

CASH FLOWS FROM FINANCING ACTIVITIES

409.416 14,099

36,823

Inflows — WIF contributions — Borrowings from non- related parties 15.328.874 13,419

39.626

(1.666,120)

Outflows — WIF Buyback and Cashout — Pool payments to growers — Borrowing repayments to

non-related parties

(1.966.806)

(15,208,271)

(7.470)

(8.770)

(1.256.704) 14,099 36,823

Net cash provided/(used) by financing activities (1,846,203) 5.949 30,856

(623) (14)

NET INCREASED DECREASE) IN CASH HELD 1,664 1.288

375 21 CASH AT 1 OCT. 1993 (248) 7

(248) 7 CASH AT 30 SEPT. 1994 1.416 1.295

52

S E C T I O N 8 · S T A T E M E N T S B Y B U S I N E S S A C T I V I T Y

P O O L T O D A T E A C T I V I T Y

1 9 8 6 - 8 7 1 9 8 9 - 9 0 1 9 9 0 -9 1 1 9 9 1 -9 2 1 9 9 2 -9 3 1 9 9 3 -9 4 1 9 9 4 -9 5

$’000 $’000 $'000 $’000 $’000 $’000 $’000

Sales 2.123,413 2,575,247 1,840,880 1,336,034 2,214,165 1,841,680 (1.145)

Interest income 94.884 75,259 46,886 14,665 28.055 (1.408) (13)

Shipping services 5.054 5,457 (6,919) 2,271 (5,481) 2,212

Other (139) 857 5,839 7,152 4,822 741

Abnormal item 203.234

Total operating rev. 2,426,446 2,656,820 1,886,686 1,360,122 2,241,561 1.843,225 (1.158)

Movement in pool grain inventories (32,747) (585,725) (49)

Cost of sales 21,354 (3,114) 1,375 13,667 (196)

Direct costs 512,151 445,521 478,287 231,299 430.299 432,225

Interest expense 223.714 184,203 76,035 44,139 59,235 37.880 (419)

AWB operating exp. 37,879 56.795 46,718 34,467 36.653 39,501

Other 10.843 85.815 6,794 3,267 30.827 (3.411) (1.114)

Total operating exp. 784,587 793,688 604,720 314,547 537,934 (79,726) (1,582)

Operating surplus 1.641.859 1,863,132 1,281,966 1,045,575 1,703,627 1.922.951 424

Extraordinary item 29.561 229

Appropriation from reserve 7,751 1.307 (597)

Total available for appropriation 1.641.859 1.900.444 1,282,195 1,045,575 1.704.934 1.922.354 424

Payments to Growers — initial — subsequent — final

1,641.859 1,896.716

3.728

1,163,578

118,617

944,277

101,298

1,526,233 83,804 3,734

1,671,866 8,354

36

Total payments to growers 1,641,859 1,900,444 1.282,195 1,045,575 1,613,771 1,681,442 36

Growers' residual interests at 30 September 1994 91.163 240.912 388

Current projections for all pools indicate that there will be a surplus of growers' residual interest on final realisation as a result of the net effect of future cash flows from anticipated transactions and those already entered into which have not yet matured.

$3

S E C T I O N 9 e M I S C E L L A N E O U S I N F O R M A T I O N

©

COMMI TMENTS

At 30 September 1994 the AWB had contracted for but not provided in the financial statements:

1993

$’000

1,600

1,600

1,445 942 848 259

3,494

317 25

342

250 100

350

556,672

8,771

733,296

(i) Capital expenditure Not later than one year

(ii) Lease ag re e m e n ts — operating Not later than one year Later than one year and not later than two years Later than two years but not later than five years Later than five years

(iii) Hire and m aintenance com m itm ents Not later than one year Later than one year and not later than two years

(iv) Major e x p o rt m arketing projects Not later than one year Later than one year and not later than two years

(v) Grain sales (refer N ote I) Contracts for the sale of grain not later than one year but subject to variation of +/- 10 per cent outturn tolerance

(vi) Grain purchases Contracts for the purchase of grain not later than one year subject to variation for quality characteristics

In addition to these specific contracts, the AWB operates pools throughout the year into which any grower may deliver without prior notice, provided that the grain meets receival standards as to quality and hygiene.

(vii) Sales of foreign currency Net contracts maturing not later than one year revalued to market rates.

1994

$'000

240

240

1,888 749 509 1

3,147

1.529

1,529

645,402

17,237

294.990

In addition to the above contracts for the sales and purchases of grain and foreign currency, the AWB has entered into contracts of a generally non-executory nature as part of its normal hedging activities which have been recorded in the financial statements on a marked to market basis except where there is no certainty of settlement.

©

C O N T I N G E N T LIABILITIES

(i) Litigation claims $500,000

(ii) Other contingent liabilities The AWB has executed guarantees in favour of both Societe Generale and Credit Lyonnais up to a maximum of $US320,000 each (total — $A990,000). in relation to banking facilities provided to SSGI and its subsidiary Southseas Grains (Hong Kong) Ltd. to enable funding of working capital requirements.

5 4

S E C T I O N 9 · M I S C E L L A N E O U S I N F O R M A T I O N

Φ

S U P E R A N N U A T I O N

All AWB staff commencing on or after 1 July 1990, with the exception of Executive Staff employed on contract, are obliged to be members of the new Public Sector Scheme (PSS) in place of the former Commonwealth Superannuation Scheme (CSS).

The CSS provides a defined benefit indexed pensions and death and disability cover from employer contributions, currently made at a rate of 16 per cent of employees’ salaries. In addition an accumulated lump sum benefit is funded from employee contributions at a rate of 5 per cent of salaries. The supplementary superannuation

provides an accumulated lump sum benefit from employer contributions currently ranging from 2 per cent to 3 per cent of employees' salaries. The AWB is obliged to make the contributions under both arrangements.

The PSS is similar to the CSS in that it is also a defined scheme but with more flexibility as far as the form of the final benefit is concerned. The cost to the AWB of the new scheme is estimated to be 7.2 per cent of employees' salaries. This figure includes the supplementary scheme.

Actuarial assessments of the plans relating to AWB members were last made as follows :

PSS 30 June 1992 Surplus $1,776,000

CSS 30 June 1992 Surplus $2,213,000

R E L A T E D P A R T I E S

In accordance with AAS22 the following information is provided concerning those persons or entities which are understood to fall within that standard’s definition of related parties:

(a) E ntities having a significant influence over th e AWB • Minister for Primary Industries and Energy Section 8 of WMA provides that in certain circumstances the Minister may give directions to the AWB and the AWB shall obey the directions. Various other sections of WMA confer powers and discretions on the Minister the exercise of which have a material

effect on the operations of the AWB, including a power of veto over nominations for Board membership made by an AWB Selection Committee.

• GCA Sections 10 and 11 (inter alia) of WMA provide that consultations will take place with the GCA and that the Chairperson will make an annual report to a meeting of the GCA. The AWB reimbursed the GCA $247,000 (1993 — $274,000) for the cost of these consultations and other AWB-related expenses.

(b) AW B — Board M em bers Chairman Clinton E Condon

Deputy Chairman Trevor J Flugge Managing Director John A Lawrenson Robert H Barry Maurice A Crotti

Ian M Dicker Eugene F Herbert Andrew R Inglis Geoffrey E Johnson Timothy C Mackey

Norman C Marran

55

S E C T I O N 9 · M I S C E L L A N E O U S I N F O R M A T I O N

The following transactions were conducted with Board member-related entities under normal commercial terms with conditions no more favourable than those available to other suppliers and customers:

1993 Transaction

$’000 835 Purchases of grain

22 WIF contributions

WIF balances at

92 30 September 1994

Board m em bers/R elated entities 1 9 9 4

$’000

Messrs. Barry, Flugge, Inglis, Johnson and Marran 552

Messrs. Barry, Flugge, Inglis, Johnson and Marran 11

Messrs. Barry, Flugge, Inglis, Johnson and Marran 109

The remuneration of Board members is set out in Note 8.

No loans have been made to Board members or Board member-related entities.

Mr Flugge is a director, as a nominee of the AWB, of MPP, a company in which the AWB has a 30.5 per cent equity but which is not a related entity (refer Note 11).

Nil sales of grain (1993 — $6,170,000) were made to Harley Milling Pty Ltd, a wholly-owned subsidiary of San Remo Macaroni Co. Pty Ltd of which Mr Crotti is a director.

Fees of $316,000 (1993 — $370,000) were paid for services provided by the SBC Australia Ltd group of companies of which Mr Barry is a director.

(c) C ontrolled entities The AWB is a single statutory entity. It has no controlled entities or entities over which it has significant influence.

φ

S U B S E Q U E N T E V E N T S

An agreement has been reached to sell the WIF equity in the MPP for a consideration of $375,000 (refer Note 11).

Discussions are in progress on a proposed investment by the AWB in GRAINCO. The investment is likely to be made in 1995 and as such had no financial impact as at 30 September 1994.

The AWB has also agreed in principle subject to necessary approval to establish a joint venture with Graincorp to market wheat and other grains in NSW. The current domestic trading activities in that State will be transferred to the new entity.

5 6

S E C T I O N 1 0 e I N D E P E N D E N T A U D I T O R ’ S R E P O R T

29 November 1994 The Honorable Bob Collins MP Minister for Primary Industries and Energy

Parliament House Canberra ACT 2600

Dear Minister,

RE: Australian Wheat Board — Independent Audit Report on the Financial Statements

SCOPE We have audited the financial statements on pages 34 to 56, including the statement by Board members, of the Australian Wheat Board for the year ended 30 September 1994. The Board members are responsible for the preparation and presentation of the financial statements

and the information they contain. We have conducted an independent audit of these financial statements in order to express an opinion on them to you and the members of the Australian Wheat Board.

Our audit has been conducted in accordance with Australian Auditing Standards and the Australian National Audit Office Auditing Standards to provide reasonable assurance as to whether the financial statements are free of material misstatement.

Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion as to whether, in all material respects, the financial statements are presented fairly in accordance with Australian Accounting Standards so as to present a view of the Australian Wheat Board which is consistent with our understanding of its financial position and the results of

its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

AUDIT OPINION In our opinion, pursuant to Sub-section 89(2) of the Wheat Marketing Act 1989; (a) the financial statements of the Australian Wheat Board are

(i) based on proper accounts and records, and

(ii) in agreement with the accounts and records and present fairly the results of operations and cash flows of the Australian Wheat Board for the year ended 30 September 1994 and the state of affairs of the Board at that date in accordance with applicable Accounting Standards.

(b) the receipt, expenditure and investment of money, and the acquisition and disposal of assets by the Australian Wheat Board during the year ended 30 September 1994 have been in accordance with the Wheat Marketing Act 1989.

Yours faithfully,

2 /

Ernst & Young

Baard Solnordal Partner, Melbourne.

57

S E C T I O N I I · I N D E X

Note No.

ACCOUNTING POLICIES 1

AWB OPERATING EXPENSES 8

BALANCE SHEET BY BUSINESS ACTIVITY 26

BORROWINGS 16

CASH FLOW STATEMENT BY BUSINESS ACTIVITY 27

COMMITMENTS 29

COMPOSITION OF CASH BALANCE 23

CONTINGENT LIABILITIES 30

CREDITORS — CURRENT 15

CURRENT ASSETS — OTHER 13

CURRENT LIABILITIES — OTHER 18

DIRECT COSTS 6

GROWERS’ RESIDUAL INTERESTS 21

INCOME AND EXPENDITURE STATEMENT BY BUSINESS ACTIVITY 25

INTEREST EXPENSE 7

INTEREST AND INVESTMENT INCOME 4

INVENTORIES 12

INVESTMENTS 11

OTHER EXPENSE 9

OTHER REVENUE 5

POOL TO DATE ACTIVITY 28

PROPERTY PLANT AND EQUIPMENT 14

PROVISIONS 17

RECEIVABLES 10

RECONCILIATION OF OPERATING CASH FLOWS 22

RELATED PARTIES 32

RESERVES 19

SALES 2

SHIPPING SERVICES 3

STATEMENT OF ACCOUNTING POLICIES 1

SUBSEQUENT EVENTS 33

SUPERANNUATION 31

UNUSED FACILITIES 24

WHEAT INDUSTRY FUND 20

58

I N D E X O F R E P O R T A B L E E N T R I E S

The Wheat Marketing Act 1989, the Department of Primary Industries and Energy’s Duties and responsibilities o f directors o f

SMAs and portfolio R & D bodies, 1992, the Senate’s Guidelines fo r the contents, preparation and presentation o f annual reports

by statutory authorities, 1982, the Department of the Prime Minister and Cabinet’s document Requirements fo r departmental

annual reports, 1994 and the Freedom o f Information Act 1982 specify the reporting guidelines the AWB complies with as far as is appropriate.

The following is an index of applicable reportable entries in the AWB’s Annual Report. References are to page numbers.

Abbreviations...................................................................... 21

Auditor’s report..................................................................57

Board members...................................................................6-7

Categories of documents h eld .......................................... 21

Contact officers................................................................... 21, back cover

Corporate goals and achievements................................... inside cover, 4

Corporate overview............................................................6-9

Equal employment opportunity........................................ 20

Enabling legislation............................................................inside cover

Enterprise agreement..........................................................20

Financial statements...........................................................31-58

Freedom of information..................................................... 21

Information officer.............................................................21

Intellectual property............................................................21

Introduction.........................................................................inside cover

Letter of transmittal............................................................2

Minister to whom responsible...........................................2

M ission................................................................................ 4

Objectives/Goals................................................................. 4

Occupation Health and Safety........................................... 20-21

R & D .................................................................................. 17

Significant highlights towards achieving objectives....... 3

Social justice and equity.....................................................20-21

Staffing overview ............................................................... 20

Table of Contents................................................................ 1

Training................................................................................ 20

59

Printed January 1995

6 0

A U S T R A L I A N W H E A T B O A R D O F F I C E S

I HE AD O F F I C E

Ceres House 528 Lonsdale Street Melbourne, Vic 3000 Postal address: GPO Box 4562 i Melbourne. Vic 3001

Telephone: (03) 209 2000 i Facsimile: (03) 670 2782 Telex: AA130196 WHEAT

II >

HE A C A D E M Y

' F G R A I N

T E C H N O L O G Y

260 Princes Highway Werribee, Vic 3030 Telephone: (03) 742 0555 . facsimile: (03) 742 4228 Director: Dr Ron Wills

O V E R S E A S F F I C E S

New York

Suite 442, 630 Fifth Avenue }New York, NY 10111 Telephone: (1 212) 307 6090 Facsimile: (1 212) 399 6111

Manager: Mr John Woolfe

ong Kong

' Suite 1209, 12th Floor Asia Pacific Finance Tower - Citibank Plaza i 3 Garden Road

' Hong Kong Telephone: (852) 509 3318 Facsimile: (852) 509 3234 Manager: Mr Nigel Officer )

| r°kyo

i Seifun Kaikan 15-6 Kabuto-cho i Nihonbashi Chuo-Ku j fokyo 103 Japan 1 Telephone: (81 3) 3669 1786/7 I Facsimile: (81 3) 3667 5500

* Manager: Mr Steve Feletti 1

S T A T E O F F I C E S

Q u e e n s la n d Office

632 Ruthven Street Toowoomba, Qld 4350 Postal address: PO Box 3183 Toowoomba Village Fair

Qld 4350 Telephone: (076) 901 900 Facsimile: (076) 392 529 Manager: Mr Adrian Hunter

N ew S o u th W a le s O ffice

234 Sussex Street Sydney, NSW 2000 Postal address: GPO Box 4081 Sydney. NSW 2001 Telephone: (02) 265 1333

Facsimile: (02) 261 3493 Manager: Mr Ted Laskie

V icto rian O ffice

528 Lonsdale Street Melbourne, Vic 3000 Postal address: GPO Box 4562 Melbourne. Vic 3001

Telephone: (03) 209 2000 Facsimile: (03) 670 6048 Manager: Mr Mark Emons

S o u th A u stra lia n Office

123-130 South Terrace Adelaide, SA 5000 Postal address: GPO Box 2218 Adelaide, SA 5001 Telephone: (08)213 3333

Facsimile: (08) 231 4182 Manager: Mr David Thomas

W e s te rn A u stra lia n Office

239 Adelaide Terrace Perth, WA 6000 Postal address: PO Box 6129 East Perth. WA 6892 Telephone: (09) 224 6464

Facsimile: (09) 221 5552 Manager: Mr Bruce Watkins

R E G I O N A L

O F F I C E S

N ew S o u th W ales

Moree Office 161-165 Balo Street Moree, NSW 2400 Postal address: PO Box 908

Moree, NSW 2400 Telephone: (067) 511 799 Facsimile: (067) 511 710

Wagga Office Lot 7, Wentworth Street Wagga, NSW 2650 Postal address: PO Box 224

Wagga, NSW 2650 Telephone: (069) 217 499 Facsimile: (069) 214 674

Dubbo Office 77 River Street Dubbo. NSW 2830

Postal address: PO Box 433 Dubbo, NSW 2830 Telephone: (068) 820 888 Facsimile: (068) 826 405

V icto ria

Horsham Office Unit 4, 31 O ’Callaghan Parade Horsham, Vic 3400 Telephone: (053) 825 544 Facsimile: (053) 811 018

Swan Hill Office 259 Beveridge Street Swan Hill, Vic 3585 Telephone: (050) 331 370

Facsimile: (050) 331 626

S o u th A u stra lia

Port Lincoln Office 79 Liverpool Street Port Lincoln, SA 5606

Postal address: PO Box 37 Port Lincoln, SA 5606 Telephone: (086) 823 526 Facsimile: (086) 826 670

Loxton Office (Harvest time only) Telephone: (085) 84 5195 Facsimile: (085) 84 5141

W e s te rn A u stra lia

Katanning Office 8 Daping Street Katanning, WA 6317 Telephone: (098) 214 738

Facsimile: (098) 212 753

Geraldton Office 2 4 1B Lester Street Geraldton, WA 6530 Postal address: PO Box 824

Geraldton, WA 6530 Telephone: (099)641 051 Facsimile: (099) 211 012

Merredin Office 21 Bates Street Merredin, WA 6415 Postal address: PO Box 424 Merredin, WA 6415 Telephone: (090)411 462

Facsimile: (090)411 968

Toll-free Grower Hotline (for all grower payments and other inquiries): 1800 0544 33