World Grain - May 2008 - 10

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Ukraine cancels grain export quotas
KIEV, UKRAINE - The Cabinet of Ministers of Ukraine cancelled
the country's quotas for grain export at their April 23 meeting, according to Ukraine Prime Minister Yulia Tymoshenko. Tymoshenko noted that in 2008 the Ukrainian government is forecasting a
good grain yield, so it is not necessary to enact further grain export
restrictions.
The Ukrainian Cabinet passed a decree on March 28 extending
export quotas on wheat, barley and rye until April 30, 2008 and
annulling quotas on the export of corn. In September, the Cabinet
decided to set a quota on grain exports totaling 1.2 million tonnes
from Nov. 1, 2007 until March 31, 2008: 600,000 tonnes of corn,
400,000 tonnes of barley, 200,000 tonnes of sixth-class coarse
wheat and 3,000 tonnes of rye. The quotas were distributed among
44 companies.

Grain traders repeatedly asked the government to cancel quotas on coarse grain exports
since there is more than enough of this crop in
the country to meet domestic demand. In addition, excessive storing of grain reduces its quality, they said.
The Ukranian State Statistics Committee
said grain stocks at Ukrainian agricultural enterprises and companies that handle its storTymoshenko
age and processing (except small enterprises)
stood at 12 million tonnes on March 1, 2008, up 21% from the
same date of 2007. Ukraine harvested 29.3 million tonnes of grain
(including maize) in weight after processing in 2007, down 14.5%
from 2006.

Australian court set to hear case on former AWB executives
MELBOURNE, AUSTRALIA - Australia's Victorian Supreme
Court announced on April 18 that it has set aside three days beginning July 28 to hear the case against six former top executives of
AWB over their alleged roles in the $118 million (A$126 million)
Iraqi kickback scandal.
In November last year, Commissioner Terence Cole recommended 11 former AWB executives face possible criminal charges.
The Australian Securities and Investments Commission (ASIC)
has launched civil proceedings against six of the executives who
face a fine of up to $187,300 (A$200,000) for each breach and a
possible ban from running any corporation.
AWB former chairman Trevor Flugge and former managing director Andrew Lindberg - against whom Commissioner Cole made no
adverse finding - are among the executives charged with breaching
the Corporations Act.
ASIC alleges the executives failed to act with care and due

diligence in relation to five contracts between the wheat exporter
and the Iraq Grain Board operating under the Saddam Hussein
regime.
The contracts allegedly involved the payment of $118.28 million
(A$126.3 million) in breach of United Nations sanctions between
Dec. 20, 2001 and Dec. 11, 2002.
AWB group general manager-trading Peter Geary, former general
manager of international sales and marketing Michael Long, and former general manager of international sales and marketing (Middle
East) Charles Stott are alleged to have implemented the contracts,
which included illegal "inland transportation fees."
Flugge, Lindberg and former chief financial officer Paul Ingleby
are alleged to have either known about the kickbacks, or ought to
have known about them. Lindberg and Geary are each charged with
10 breaches of the Corporations Act. Flugge is charged with seven
breaches, Long with 17, Ingleby 16 and Stott 12.

Cargill income up sharply in third quarter
MINNEAPOLIS, MINNESOTA, U.S. - Cargill, Inc., announced
on April 14 that it had net earnings for the quarter ended Feb. 29 of
$1.03 billion, up 86% from $553 million in the
same period last year. Earnings in the first nine
months totaled $2.9 billion, a 69% increase from
$1.71 billion last year.
Cargill said increased global demand for agricultural goods contributed to strong third-quarter results.
"Demand for food in developing economies
and for energy worldwide is boosting demand
Page
for agricultural goods, at the same time that in-

vestment monies have streamed into commodity markets," said Greg
Page, chairman and chief executive officer. "Prices are setting new
highs and markets are extraordinarily volatile. In this environment,
Cargill's team has done an exceptional job measuring and assessing
price risk and managing the large volume of grains, oilseeds and
other commodities moving through our supply chains for customers
globally."
Four of Cargill's five business segments increased earnings from
the third quarter of the previous year. The largest earnings came from
the origination and processing segment, which sources, processes
and distributes agricultural commodities and provides supply chain
and risk management services.

May 2008 / World Grain / www.World-Grain.com

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World Grain - May 2008

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