In 2008 this part of a CBH document claimed that WA growers had access to the cheapest storage and handling in Australia.

The time line of this graph is worth noting. By 2008 it is already 3 years old.

The truth; by the time the document was distributed to growers CBH charges had already escalated to be comparable with other companies.

CBH Historic Charges

It clearly shows a rapid increase in base CBH charges after the period of the previous graph.

2005/06

Previous Graph Period

Costs increase while grain prices have decreased $200/tonne

1st ofMonth

2008Warehousing

Fees

2009Warehousing

Fees

Increase

Feb 80c / tonne $1.30 / tonne 62%March 80c / tonne $1.30 / tonne 62%April 80c / tonne $1.30 / tonne 62%May 90c / tonne $1.30 / tonne 45%June $1.00 / tonne $1.30 / tonne 30%July $1.10 / tonne $1.30 / tonne 18%August $1.10 / tonne $1.30 / tonne 18%September $1.70 / tonne $1.70 / tonne 0%October $3.00 ? ?November 1.90 ? ?December 1.80 ? ?

. The domestic feed barley scenario shows CBH having the highest costs in 2008 with further increases in 2009.

Further increases in 2009/10.

The domestic feed barley scenario shows CBH having the highest costs in 2008 with further increases in 2009.

.

CBH has the greatest increase in charges for export wheat & barley between 07/08 & 08/09.

An increase in revenue direct from the farm, an added cost of production.

Domestic outturn charges have increased by 43.5% in the last 2 years.

Export Charges increase by 54% since 2006/07.

CBH FOB COSTSCBH FOB COSTS

$21 - $25$21 - $25NoteNote: This cost includes all stevedores, harbour : This cost includes all stevedores, harbour dues, security, receivals fees into the port, dues, security, receivals fees into the port, shipment slot booking fees, port loading fees, shipment slot booking fees, port loading fees, rebates, certificates, agents, WEArebates, certificates, agents, WEA

Peter McBridePeter McBride General Manager - Corporate Affairs General Manager - Corporate Affairs AWB Ltd AWB Ltd

AustraliaAustraliaFOBFOB

Peter McBride General Manager - Corporate Affairs AWB Ltd

Ukraine$19.10 - $22.47

FOBFOBIn Australian Dollars based on an A$ exchange In Australian Dollars based on an A$ exchange

rate of 89centsrate of 89cents

Comparative Export Costs for Comparative Export Costs for Handling Grain:Handling Grain:

Canadian ‘Mandatory’ Tariffs Canadian ‘Mandatory’ Tariffs

Average “mandatory” Canadian Export FOBBING Costs charged to the Canadian wheat producer:

Approximately US$ 9.00 per MT

2009/10 CANADIAN GRAIN COMMISSION SUMMARY LICENSED (EXPORT) TERMINAL ELEVATOR TARIFFS

Vancouver Tariff charges range from Can $ 8.08 to Can $ 10.00

Source: http://www.grainscanada.gc.ca/statistics-statistiques/tariff-tarif/tt/terminal10-01-22.pdf

Peter McBride General Manager - Corporate Affairs AWB Ltd

Germany / France$6.06 - $7.57

FOBFOBIn Australian Dollars based on an A$ In Australian Dollars based on an A$

exchange rate of 89centsexchange rate of 89cents

$4.12 - $6.19$4.12 - $6.19

NoteNote: US ports are cheaper for the following reasons: US ports are cheaper for the following reasons1. Through put volume1. Through put volume2. River system (a more natural port system with significantly less 2. River system (a more natural port system with significantly less set up cost and capitalisation) set up cost and capitalisation) 3. Ports pay demurrage - dispatch. ie the port earns dispatch, thus 3. Ports pay demurrage - dispatch. ie the port earns dispatch, thus they attract contestable tonnes with lower fobbing rates and make it they attract contestable tonnes with lower fobbing rates and make it back on the dispatch)back on the dispatch)4. Ports treat/view fobbing as a tradable commodity and adjust price 4. Ports treat/view fobbing as a tradable commodity and adjust price with supply and demand (linked to point one and revenue from with supply and demand (linked to point one and revenue from volume through put)volume through put)    

Peter McBride General Manager - Corporate

Affairs AWB Ltd

USAUSAFOBFOB

In Australian Dollars based on an A$ exchange rate of 89centsIn Australian Dollars based on an A$ exchange rate of 89cents