Australian Grain Storage NIP 37 Avenue Leeton | NSW 2705 Locked Bag 2 Leeton | NSW 2705 T. 02 6953 0411

22nd January 2018

Dear Grower

HARVEST RECEIVAL ARRANGEMENTS

AGS are in the process of finalising harvest planning for C18. At this stage there will be only minimal changes to the harvest receival plan issued in August 2017.

As with previous years it is important that growers keep in contact with their receival depot to ensure we manage opening hours, service and costs as efficiently as possible. Our depot supervisors will always aim, where possible, to be flexible with opening hours if they know your intentions and a reasonable amount of paddy will be delivered.

Whilst it is not always possible, we hope that growers will be able to complete their harvest within a reasonable timeframe. Loads that are received several weeks after the bulk of harvest has been completed represent an increased cost to the business and often result in poor paddy quality to the mill. It is important that we finalise the harvest as quickly as possible to maintain quality and minimise labour and aeration costs.

HARVEST PLANNING

The harvest receival plan as outlined in the seed circular is included below. Areas highlighted in green are additions to the original plan aimed at improving grower service. Those highlighted in red are varieties which have been removed from the plan (please read the document fully to understand alternative measures which have been put in place).

RECEIVAL PLAN

Depot Sherpa Reiziq YRM70 Doongara Topaz Langi Illabong Koshi Opus YRK5 Gogeldrie P P P Murrami CLOSED Whitton S S S S S Benerembah P P Willbriggie P P P P P P Hay CLOSED Walsh CLOSED CLOSED Emery P P P P P P Hogan P P P Finley P P P P P Blighty CLOSED P&S P&S P P&S P&S P&S P&S Caldwell CLOSED P P S P P P P P P

Addition to the seed circular Alteration to the seed circular. Variety no longer received

The efficient operation of each depot relies heavily on growers and AGS staff working together. With improvements in transport it is common for growers to move to other depots when suitable. In many cases this can assist in balancing queues, or alternatively it can negate movements that AGS may have completed to free up capacity for other growers.

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Redirection payment is generally only available when a depot nominated as ‘open’ in the seed circular has been closed. It may also be offered in targeted areas to address the capacity issues at some depots. It is a tool used to compensate growers for ‘additional’ costs when traveling to an alternative depot. Please note redirection payment is available on nominated routes only. The use of redirection payment is at AGS discretion and may cease at any time during harvest as grower delivery patterns and crop yields become known.

The rate for redirection payment for C18 is as follows.

Flagfall (first 10km) = $7.43per tonne Additional km’s = $0.10 per tonne per km

The Redirection payment rate is based on total km travelled minus the distance from farm gate to your nearest depot. As an example, if you are 30km from your closest depot and you are traveling to another depot located 55km from your farm the calculation would be as follows:

Qualifying distance (55-30km) = 25km Flagfall (payment for first 10km) = $7.43 per tonne Additional kms ($0.10 per tonne x 15km) = $1.50 per tonne Total redirection payment = $8.93 per tonne

So you are aware of what may impact your depot and others, a list of proposed actions is included below:

Yenda In the Yenda and Widgelli area it is expected the crop size will be around 65,000t, which will exceed the capacity of the site. As per the seed circular the Yenda depot will receive Reiziq, YRM70, Topaz and organic only. The Willbriggie depot will have spare capacity and this is an option for growers who may wish to deliver their Reiziq to this depot. Redirection payment is not available for these movements.

Benerembah In the Benerembah area it is expected the crop size will match the capacity of the site. As per the seed circular, the Benerembah depot will receive Reiziq and YRM70 only. Growers are asked to not deliver Reiziq to Willbriggie as this will leave Yenda growers with no alternative delivery point.

Hay The Hay depot will remain closed for the 2018 harvest. Due to no other nearby depots being available, redirection payment will be provided for growers to deliver to Deniliquin.

Walsh / Coleambally As per the seed circular, only Emery depot will operate in the CIA region. This will provide the most efficient and cost effective receival and drying option for the region. Redirection payment is not available for this movement.

Caldwell / Blighty As per the seed circular both depots will remain closed for the season. Growers are asked to deliver their paddy to Deniliquin. Redirection payment is not available for this movement.

Burraboi In the Burraboi area it is expected the crop size will match the capacity of the site. There is considerable tonnage of all 3 varieties on the site which may limit the flexibility of the receival plan. AGS staff will work with growers throughout harvest to ensure the harvest runs as smoothly as possible. Redirection payment to Deniliquin is not available at this stage.

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Moulamein Prior to the issue of the seed circular AGS was asked to include 5 varieties for receival on the Moulamein site with agreement to redirect the variety with the lowest tonnage to Deniliquin. In considering overall tonnage, intake speed and admixture risk, Sherpa growers will be paid redirection payment to deliver their paddy to Deniliquin. With Reiziq being the dominant variety it will be received into shed 1 and 4 with the 3 short grains being received into shed 3. Shed 2 will be used to store carryover short grain paddy and for an alternate pit for short grain.

The entire team at AGS and SunRice Grower Services wishes you a very smooth and efficient harvest. If there is anything that we can help with at any stage during the harvest period, please do not hesitate to contact your local AGS depot or SunRice Grower Services on 1800 654 557

Regards,

Matt Bailey Tom Howard AGS Manager GM AGS, Grower Services and Agronomic Development