hotbmw Technicially speaking AWB is a middle man. I think the borrowing you refer to is the money AWB pays the growers for there grain. This is in the form of a harvest loan it works like this AWB borrows money to pay the grower within 30 days of grain being delivered this is usually about 80% of the value of the grain , it then charges the grower interest plus a margin on the harvest loan until the grain is sold, this can take up to 18mths. The remaining 20% is then paid but if there is price fluctuations and extra costs it is taken from this. So all in all the more money AWB borrows to lend the growers the more charges ( profit ) AWB makes. AWB do'es not loss. Further to this it buy's and sell's grain for cash. Hope this helps.
AWB Price at posting:
$1.30 Sentiment: LT Buy Disclosure: Held
