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.”