AWB Limited facts for kids

Quick facts for kids
Formerly	Australian Wheat Board
Traded as	ASX: AWB
Industry	Grain
Founded	1939
Founder	Government of Australia
Defunct	2010
Headquarters	Melbourne , Australia
Revenue	$5.5 billion (2010)
Operating income	$407 million (2010)
Net income	$13 million (2010)
Number of employees	2,200

AWB Limited was a big company in Australia. It helped farmers sell their grain, especially wheat. The company started in 1939. The Australian Government created it back then. It was first called the Australian Wheat Board. Later, in 1999, the government sold it. Wheat farmers first owned parts of it. In 2010, another company called Agrium bought AWB.

A Brief History of AWB

Starting as the Australian Wheat Board

AWB began in 1939. Its main job was to manage the wheat market. This was important after the Great Depression. That was a time when many people lost their jobs and money. The company had a special role. It was the only group allowed to sell Australian wheat overseas. This was called the "single desk" system. Other countries, like Canada, had similar systems.

Becoming a Private Company

For many years, the government owned AWB. But in 1999, the government changed it. AWB became a private company. At first, wheat farmers could own special shares. These shares let them choose most of the company's leaders. Later, in 2001, other shares were sold. Anyone could buy these shares on the Australian Securities Exchange.

In 2008, the company changed its rules again. All shares became the same type. This meant farmers no longer had special ownership. The company wanted to make its business simpler.

Growing with New Businesses

After AWB became private, it grew. It started or bought other businesses. This helped it earn money in different ways. For example, one part of AWB was called GrainFlow. It helped move grain from farms to ports. Other parts of AWB helped ship grain overseas. Another business, Landmark, offered services to farmers. These services included finance and real estate.

How AWB Was Organized

AWB Limited was like a parent company. It owned many smaller companies. These smaller companies were called subsidiaries. AWB's shares could be bought and sold. This happened on the Australian Securities Exchange.

Key Subsidiary Companies

AWB had several important subsidiaries. Each one had a different job:

• AWB (International) Limited was the company that exported wheat.
• AWB (Australia) Limited handled wheat sales within Australia. It also exported other grains.
• AWB Services Limited helped the other AWB companies. It provided things like financial help and computer services.
• AWB GrainFlow Pty Ltd managed grain storage and transport. It moved large amounts of grain.
• Landmark was a big part of AWB. It helped Australian farmers with many things. This included money, insurance, and selling farm equipment.

In 2009, AWB decided to make its business simpler. It sold off some of its financial services. For example, it sold its loan business to the ANZ Bank.

Challenges and Changes

After some difficult times, AWB worked to improve. A new team took charge in 2006. They made changes to the company's structure. They also tried to make the business stronger.

However, the company still faced challenges. In 2009, AWB had financial losses. This happened when it tried to expand its trading in Brazil. In 2010, the company announced more losses. These were due to various business costs.

The Sale of AWB

In 2010, AWB decided to merge with another company. This company was called GrainCorp. But this merger did not happen. Instead, Agrium made an offer to buy AWB. Agrium successfully bought AWB in December 2010. After this, AWB's shares were no longer traded.

In 2011, another company called Cargill bought part of AWB. This part was the Commodity Management business.