Charges to rise 5pc: CBH

20 Oct, 2005 07:00 PM
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CO-OPERATIVE Bulk Handling (CBH) Group has refuted claims its storage and handling charges will rise by more than 5pc for harvest.

Farm Weekly reported last week AWB said with new and increased charges the total rise would be 7.4pc, with Brooks Grain expressing particular concern about a new export accumulation fee.

CBH chief executive officer Imre Mencshelyi said the group increased storage and handling charges for this harvest - the first increase in 15 years - in response to rising operational costs.

Mr Mencshelyi said the claim CBH Group charges had risen 7.4pc was incorrect.

"The average increase across charges is 5pc but growers who pay their account within 30 days will receive a 3pc discount on their receival and quality assessment fees," he said.

"Growers who have participated in the Better Farm IQ program will receive their risk-reduction payment of 50c/t for grain delivered to CBH and a further 25c/t for grain delivered to Grain Pool or AgraCorp.

"Taking these factors into account, the actual charging increase to growers ranges from 0-2pc, a reasonable situation when the accumulated CPI had increased by 14.4pc since 2001."

Mr Mencshelyi said even with the 5pc increase, CBH storage and handling charges were still the most competitive in Australia.

It was incorrectly reported in Farm Weekly last week that Brooks grain marketer Kate Smith said farmers would be differentiated by where they bought their grain in WA.

She had said it was marketers who would be differentiated because the new export accumulation fee imposed penalties on them, taking less than 1200t out of category three and four receival sites, while grower delivery charges were the same for all sites.

Mr Menschelyi said marketers paid the cost of CBH providing the service.

"CBH Group's charging structure reflects the true cost of managing the logistics of storing, handling and out-turning grain and is principally focused in promoting efficient use of the supply chain by marketers," he said.

"Marketers wishing to acquire grain outside the most efficient supply chain will be charged for the additional services activated.

"The growers of WA should and will not be penalised."

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