CBH decides against east coast investment

06 Aug, 2014 02:00 AM
Comments
14
 
It is a fast changing environment...there are a number of lines of inquiry that need to be explored

THE CBH Group has put plans to invest in the Eastern States supply chain on hold for now.

For some time speculation has been rife in the WA grain industry that the co-operative was moving to establish a foothold on the east coast.

While CBH members have been divided on the merits of an Eastern States investment, many have been frustrated with a perceived lack of consultation over plans for the proposed move.

But last night, following a meeting of the board, CBH released a statement saying it was not going ahead with the project as it stood.

“The CBH Group has been investigating the potential of investing in supply chain assets in northern New South Wales,” the statement said.

“Given the increased competitor activity in the region, the CBH Group Board has decided not to proceed with the current project as it stands but resolved to continue monitoring the opportunities across the eastern seaboard”.

CBH Group CEO Dr Andy Crane said there were many opportunities in the agribusiness sector currently.

“We have seen an increase in competitor activity both here in WA and in the Eastern States,” Dr Crane said.

“There has been significant activity particularly in the northern New South Wales region over the past 12 months with regards to investment in logistics assets and the supply chain.

“It is a fast changing environment and there are a number of lines of inquiry that need to be explored before any one project is approved.

“The CBH Group considers its investments thoroughly to ensure we make the right decisions at the right time on behalf of our growers.

“Sometimes this takes time but it is important to assess all of the risks and rewards.”

FarmWeekly
Date: Newest first | Oldest first

READER COMMENTS

Deregul8
6/08/2014 7:16:02 AM, on Farm Weekly

A win for common sense. The very fact this board was considering this investment highlights their naivity and the lack of respect for the challenge they have ahead in dealing with competitive forces. Unfortunately they still have an investment in a port whose catchment is now suffering from its second drought year. If their eye was on the ball they may have spotted the opportunity at Bunbury that Bunge did.
beacon boy
6/08/2014 7:27:29 AM, on Farm Weekly

"We have seen an increase in competitor activity both here in WA and in the Eastern States,” Dr Crane said." ding ding mr crane! it appears the lights may have come on in the cbh boardroom. dust your gloves off. there is a fight on your hands. these multinational boys mean business and our cbh equity is on the line!!!!!
NSW Farmer
6/08/2014 8:07:53 AM, on Farm Weekly

disappointing for NSW, we sure could have done with equity in a world class co-op, one big debt mess unfolding over here now the droughts have returned
she told me to sell
6/08/2014 10:02:35 AM, on Farm Weekly

good! twas a silly idea indeed. focus on the backyard and get that right. I wonder how much was wasted on this idea?
Gerry Atric
6/08/2014 10:47:56 AM, on Farm Weekly

Would have been easy to go ahead given the success of the investment in flour mills in Asia, but it appears the correct decision has been made for CBH shareholders.
Jock Munro
6/08/2014 12:48:47 PM, on The Land

Deregular, Why does 'competition' lower our wheat prices yet raise our logistics costs in the East?
Deregul8
6/08/2014 1:09:14 PM, on Farm Weekly

You have no competition for your wheat Jock because you will not have any to export AGAIN this year. The bidders have all moved to SA and WA to chase our grain. You could always go back into sheep I guess.
halfcocked
6/08/2014 9:34:15 PM, on Farm Weekly

How about cbh investing in getting albany zone grain quicker to port. Our prices for all milling grades are about $25 atonne less than the other 3 zones. Bunge are giving us a chance to export out of Bunbury
Jock Munro
10/08/2014 7:05:59 PM, on The Land

Answer the question deregula.
CBH Shareholder
11/08/2014 11:27:57 AM, on Farm Weekly

Thats easy to answer Jock because under the single desk WA and SA growers were effectively subsidising the east coast with the national pooling of freight.
1 | 2  |  next >

POST A COMMENT


Screen name *
Email address *
Remember me?
Comment *
 

COMMENTS

light grey arrow
I'm one of the people who want marijuana to be legalized, some city have been approved it but
light grey arrow
#blueysmegacarshowandcruise2019 10 years on Daniels Ute will be apart of another massive cause.
light grey arrow
Australia's live animal trade is nothing but a blood stained industry that suits those who