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CBH direct-to-vessel service returns $730,000 in rebates to growers

Henry Wells, January 25, 2017
CBH Bolero Esperance direct to vessel 201617 harvest (small)

Vessel ‘Bolero’ loaded direct-to-vessel in Esperance during harvest 2016/17, saving costs for growers and marketers, photo CBH Group.

Cooperative Bulk Handling Ltd (CBH Group) has reported that its new Direct-to-Vessel service has returned around A$730,000 to growers through receivals-fee rebates, and around A$675,000 to marketers.

The service was introduced, for the first time, in the 2016/17 harvest, as a lower-cost storage and handling service.

It enables growers to sell grain for export on specific vessels (identified and communicated to growers by grain marketers) and deliver grain direct-to-port within a 14-day window preceding the ship’s arrival.

Managing volumes while providing rebates

“Participating growers would receive a rebate of $3.80 per tonne (mt) on the receival fee charged while marketers would receive a rebate of $3.50 per tonne – making the total supply chain cost almost 25 per cent lower than CBH Group’s standard storage and handling services,” CBH Group general manager of operations, David Capper, said in a statement.

Five grain marketers, including CBH Marketing and Trading, and 358 growers, used the service to export grain from Western Australia during the 2016/17 harvest.

The volume shipped was 193,000mt loaded aboard 22 vessels.

Benefit to growers and marketers

Mr Capper said CBH is committed to continuing to look for opportunities to improve services to growers.

“We have shown the benefit of this service for growers and marketers, but there’s also a benefit for CBH in terms of managing the increasing volume of grain coming into the CBH storage and handling network,” he said.

The result of Direct to Vessel rebates was a combined total of around $1.4 million returned to growers and marketers (around $730,000 to growers and around $675,000 to marketers).

CBH Group receivals were a record in 2016/17 (link to story here) rising well beyond 16 million tonnes (Mt), and exceeding the 15.8 Mt received from the 2013/14 crop.

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