Agribusiness

CBH sets sights on lowest-cost supply chain

Grain Central, June 22, 2018

CBH Group announced today it would cut storage and handling fees by $4/tonne effective from the commencement of the 2018-19 harvest.

CBH CEO Jimmy Wilson

CBH chief executive officer Jimmy Wilson said CBH Group was continuing its commitment to provide the lowest cost, most efficient grain supply chain for Western Australian growers.

“The fee reduction will support our growers to compete with lower cost grain from other international supply origins,” he said.

“We know that the international competitiveness of Western Australian grain is under threat from fierce competition from the Black Sea and reducing our supply chain fees and improving efficiency is essential to keep grain growing viable for generations to come.”

Mr Wilson said the CBH’s recently introduced efficiency measures, reduction of operating costs and strong balance sheet made the lower fees possible.

The $4/t reduction will be split evenly between grower and marketer fees.

In his address to the 2017 CBH Group annual general meeting Mr Wilson said the average crop size was growing.

“We have brought forward the planning and implementation of a number of key projects to better adapt to the changing needs of growers.

CBH’s $750 million, five-year network strategy first phase commenced early 2016, while the second phase commenced mid-2017.  The objective of the infrastructure expansion and upgrade is to further reduce growers’ paddock to port costs.

Source: CBH

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