THE value of its Asian flour mills and boardroom behaviour were the big ticket items on CBH's annual general meeting (AGM) agenda last week.
During question time North Yelbeni grower and recently appointed CBH board member Derek Clauson took to the floor, telling CBH management he and a large proportion of grower shareholders were worried about the declining profits of the co-operative's flour mills, which took a turn for the worse in 2012 and dropped from $14 million to just $7m in three years.
It represented a 53 per cent drop on the 2011 figures which CBH chief financial officer David Moroney attributed to market conditions caused by the ongoing US drought.
"Since 2010 US$30m has been returned to CBH from the group's flour mills," Mr Moroney said.
"And we're aware of the concern which has arisen because growers don't necessarily see a tangible benefit.
"But the financial benefit is most certainly there.
"We paid $70m for half a share and the mills are now valued at about $500m."
CBH chief executive officer Dr Andrew Crane also weighed in on the issue and told growers CBH's investment in Asian flour mills would continue to be an important part of diversifying the co-operative's portfolio.
"It's about making sure the business is viable through feast and famine," he said.
"You can be assured value will be returned to growers in one way or another."
In a change of pace it was Coorow grower Rod Birch who declared his distaste for what he called "worrying board behaviour" at the AGM.
When he took to the microphone he questioned CBH's executive as to whether or not CBH directors had signed a code of ethics which prevented individuals from airing the board's dirty laundry to the media rather than dealing with it in a unified manner around the boardroom table.
"I think I speak for a number of growers when I say it's very concerning," Mr Birch told CBH chairman Neil Wandel.
"And not only that, as a grower it's very confusing, who are we supposed to be listening to and trusting to make the right decisions in the boardroom on our behalf?"
Mr Wandel told Mr Birch the executive was well aware of the issue and vowed to work towards a solution to the problem.
But despite the questions and criticisms there was no doubt the record 2011/12 crop provided the backdrop for the AGM with CBH outlining how its record profit had enabled a boost to its capital reinvestment program.
CBH chairman Neil Wandel reiterated to shareholders how the co-op had kept storage and handling fees flat and reduced rail freight rates this year while committing an additional $40m during the next three years for network upgrades.
"The record breaking harvest in 2011/12 allowed CBH to absorb many of the cost increases in our business and avoid passing them onto growers," he said.
"In 2013 we will keep our storage and handling fees flat.
"It's currently estimated growers in WA pay $14 a tonne less than growers in eastern Australia, who at the moment pay about $40/t in storage and handling fees which doesn't include freight to port."
Mr Wandel also re-affirmed the co-op's recent rail investment which had helped to reduce rail freight rates by an average of seven per cent.
"One of the main ways we can return value to growers is by investing in their supply chain to ensure it remains the most efficient and low cost in the country," he said.
He also confirmed CBH's commitment to the Tier 3 rail network in the Wheatbelt, telling growers CBH would do everything it could to ensure the viability of the lines.
At last year's AGM growers were told the record volume of the 2011/12 crop was expected to result in a significant turn around in CBH's financial performance from 2010/11 and a $100m profit was forecast.
Last week CBH confirmed a net profit after tax of $162m for 2012.
The co-op's marketing and trading division also recorded the strong result by amassing more than 6.3 million tonnes of grain throughout Australia including more than 40pc of the WA harvest.
It also shipped more than $2.6b in grain during 2012, up from $1.5b in 2011.
