co-op YOUR GRAIN MARKETING GUIDE 2017-18 Built by Growers For Growers www.aggcoop.com.au 1300 943 244 1
We know grain marketing is not a one size fits all solution so we ve developed managed programs that offer smart solutions whatever your choice of market exposure and cash flow needs. Our structured selling programs Harvest and Three take the stress out of selling grain into the cash market. We sell portions of your grain progressively, across a defined period of time, aiming to provide you with an above average return. Our premium marketing programs - Stars and Protect work strategically to protect your equity while capturing market upside, if and when it occurs. PAYMENT OPTIONS MANAGED PROGRAM PROGRAM OBJECTIVES GRAIN ACCEPTED MANAGEMENT FEE ADVANCE DISTRIBUTIONS DEFERRED LOANS STARS A tailored managed program that seeks to capture market opportunities pre, during and post-harvest. Uses commodity futures, options and foreign exchange and physical sales. Wheat all $6.95/t 18-May-18 50% 25-Jan-18 50% 18-May-18 HARVEST Aims to outperform the harvest cash average price. You benefit by fast cash flow around harvest without monitoring the market for the optimum time to sell. Wheat and barley all $3.95/t 16-Feb-18 40% 29-Dec-17 60% 16-Feb-18 THREE Aims to outperform the post-harvest cash average price. Take advantage of postharvest market exposure from January to April. Wheat and barley all $3.95/t 27-Apr-18 33% 23-Feb-18 33% 23-Mar-18 34% 27-Apr-18 PROTECT Spreading risk through a managed program that protects and enhances grain values. This program, which supersedes L5P50, still aims to protect against downside price risk, while offering participation in the market over a longer period. A tailored managed program for feed barley that seeks to outperform the market over a defined time period. Growers benefit by marketing strategies that steadily increase levels of price protection. Wheat all Feed barley all $6.95/t $5.95/t 40% 13-Apr-18 13-Jul-18 80% 13-Jul-18 HARVEST LOAN 80% Up to 80%* FLEXI LOAN offers a volume discount on management fees for members. See back page for more details. *Flexi Loan: A flexi loan allows participants to access up to 80% of the EPR, if cashflow is required. If a grower does not draw on their available funds, they will be paid on the distributions timeline. They will not be paid any money at harvest, unless they request it. Interest is only charged on the funds that have been drawn down. 2 3
Co-op programs offer choice and flexibility Key dates for each program show that we offer year-round, full season marketing opportunities to match your choice of market exposure. Full terms and conditions are available on our website www.aggcoop.com.au PROGRAM ACTIVITY AUG-17 SEP-17 OCT-17 NOV-17 DEC-17 JAN-18 FEB-18 MAR-18 APR-18 MAY-18 JUN-18 JUL-18 AUG-18 SEP-18 STARS Contracting period 21 Aug - 29 Sept 2017 1 Nov 17 Dec 2017 Market exposure 21 Aug 2017 27 Apr 2018 Contracting period 18 Sept 30 Nov 2017 HARVEST 1 Nov 17 Dec 2017 Market exposure 1 Dec 2017 31 Jan 2018 Contracting period 18 Sept 2017 12 Jan 2018 THREE 1 Nov 2017 14 Jan 2018 Market exposure 15 Jan 13 Apr 2018 Contracting period 18 Sept 2017-31 Jan 2018 PROTECT 1 Nov 2017-31 Jan 2018 Market exposure 1 Dec 2017-31 Aug 2018 Cash YOU ARE IN COMPLETE CONTROL PHYSICAL AND FORWARD SALES YEAR-ROUND 4 5
CHANGE YOUR CASH GAME! Clear is a service that helps you access a cash marketing option and gives you control by setting your OFFER price for your grain. It s as simple as Get Ready WE CAN SET UP A CGX ACCOUNT + LINK IT TO CO-OP Completing an Authorisation Agreement enables us to help you offer your grain at your price to all buyers, anonymously and securely. ITS FREE! The Australian Grain Growers Co-operative ( Co-op) appreciates the outstanding support it has received in the last two seasons. Your continued participation has enabled us to offer proven and new programs for growers. We encourage you to consider grain marketing programs, providing compelling alternatives that are effective, efficient and tailored to meet your market risk exposure and cash flow needs. Simply select an Co-op grain marketing program, read the details on the back page about participating and we ll take care of the rest. We are working with experienced pool manager and exporter Plum Grove (PGSA) to deliver Australian growers some of the best programs for grains under management, with clearly defined strategies and performance mandates. supports safe work practices through the Safe Work SA Agriculture Action Plan, which identifies who, how and where people are being injured most and what we can do to contribute to the reduction of workplace injuries across the state. Full details are available on our website. Your support contributes to the continued success of this grower-owned business. We wish you all the best for this harvest in a challenging production season and look forward to doing business with you. Aim.. Trade! co-op SET THE PRICE YOU WANT FOR YOUR GRAIN - YOU RE IN CONTROL Aim at the market with an offer or shoot for the stars and monitor the moves - we will help you. More volume creates more value at the farm gate. Your offer can be edited or cancelled anytime before trading in a secure and transparent trading environment. IT S FREE TO OFFER, EDIT OR CANCEL! YOUR GRAIN IS SECURE AND PAYMENT IS MADE WITHIN 7 BUSINESS DAYS! You are automatically notified when a buyer s bid matches your offer and your grain is secure. If required, you then transfer the grain as instructed, but retain title until you are fully paid. A SUCCESSFUL TRADE COSTS JUST $1/T WHICH IS RE-DIRECTED TO IF AUTHORISED. Clear Grain Exchange Bruce McDonald, MANAGING DIRECTOR co-op Established in 2010 to meet demand for a transparent and trustworthy marketing service that returns profits back to Australian grain growers. Straightforward professionally managed programs designed to take the stress out of grain marketing Managed programs are independently reviewed annually www.aggcoop.com.au 1300 943 244 info@aggcoop.com.au Co-op supports the Australian Grain Industry Code of Practice and adheres to all protocols detailed in the GTA Operating Standards for Pool Providers. PLUM GROVE Plum Grove is contracted to provide specialised program management services and experienced grower service support. The business is built on professionalism, innovation and reliability with access to international markets to accumulate cargoes for major end users who represent significant consumptive demand for Australian grains in export markets. www.plumgrove.com.au 1300 411 155 growerservices@plumgrove.com.au Plum Grove supports the Australian Grain Industry Code of Practice and adheres to all protocols detailed in the GTA Operating Standards for Pool Providers. 6 7
How to participate Participating in s managed programs this harvest is easy. The Stars and Harvest programs will need a contract to participate. Go to www.aggcoop.com.au for more information and to complete an online Intention to Contract form. You can participate in Three and/or Protect by either: 1. Direct transfer - default distributions payment method applies 2. Contract providing alternative payment options such as Advance, Loans, Deferred Full transfer information will be available on our website. Benefits of membership The volume discount on management fees for members has increased between volume segments and extended to participation in ANY Co-op program. TONNES DELIVERED VOLUME FEE DISCOUNT ($/t) 0 to 500t 501 to 800t 801 to 1500t 1501 to 5000t More than 5000t $0.00 $0.30 $0.50 $0.70 $0.90 Disclaimer: The information and options within this brochure are of a general nature only and do not take into account the particular needs or individual circumstances of investors. The Material does not constitute any investment recommendation or advice nor does it constitute legal or taxation advice. Neither Co-op Ltd ABN 33 719 186 591, nor Asset Management Pty Ltd ABN 13 160 357 586, give any warranty, whether express or implied, as to the accuracy reliability or otherwise of the information and opinions contained herein and to the maximum extent permissible by law, accepts no liability in contract, tort (including negligence) or otherwise for any loss or damages suffered as a result of reliance on such information or opinions. Full details are contained in the Terms and Conditions. 8