Australia
July 19, 2007
• Five-year feed barley supply
agreement valued at $1 billion
• Supports Australian barley growers into the future
• ABB secures continuity with major international barley buyer
Leading Australian agribusiness
ABB Grain has signed a
landmark $1 billion agreement with Saudi Arabia’s United Feed
Company to supply feed barley.
The memorandum of understanding (MOU) struck between the two
companies extends long-standing supply arrangements, resulting
in the key Australian agribusiness supplying one of the world’s
largest food companies for a further five years.
ABB’s relationship with the United Feed Company began in 1998.
Since then, ABB has supplied more than eight million tonnes of
barley to the firm, shipping up to two million tonnes of grain a
year.
ABB chairman, Perry Gunner, said the long-term agreement
demonstrated ABB’s continued progress at an international level.
“This agreement provides a solid, long-term support base for
Australian barley growers and their grain which is highly
regarded by customers in the Middle East,” he said.
“It is a significant coup for Australian barley growers and our
company. It’s also testimony to the value of developing close,
trusting relationships with international customers and their
confidence in our ability to supply very large volumes of
grain.”
Mr Gunner said that Saudi Arabia (with more than 27 million
people) was experiencing rapid growth. As the world’s largest
feed barley buyer, Saudi Arabia annually imported around 7.5
million tonnes, with United Feed accounting for the “lion’s
share” of the grain tonnage.
Chairman of the United Feed Company, Mr Emad Al-Muhaidib, said
his company’s long-standing relationship with ABB was a valuable
one.
“The agreement highlights the strong relationship we have with
ABB as a reliable supplier of barley,” Mr Al-Muhaidib said. “It
allows us to add value to our business and end customers.”
The barley delivered to United Feed Company will be bagged and
branded with the ABB logo and supplied to Saudi Arabia’s Bedouin
community.
Mr Gunner said ABB Grain and the United Feed Company had agreed
to also explore other business ventures. |
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