Winney comment brews up malt producer selling speculation

30 Mar, 2012 02:00 AM
Comments
1
 
Although a Glencore spokesperson denied the claims, Emerald Group chairman Alan Winney sparked speculation that Australia's largest malt producer, Joe White Malting could soon be on the market after it's parent company Viterra was purchased by the Swiss giant, Glencore.
Although a Glencore spokesperson denied the claims, Emerald Group chairman Alan Winney sparked speculation that Australia's largest malt producer, Joe White Malting could soon be on the market after it's parent company Viterra was purchased by the Swiss giant, Glencore.

EMERALD chairman Alan Winney has set tongues wagging after suggesting Australia's largest malt producer, Joe White Maltings, could soon be up for sale.

Mr Winney made the off-the-cuff remark at a breakfast held to celebrate 100 years of WAFarmers last Thursday where he discussed globalisation and its impact on the Australian agricultural industry.

Mr Winney said the rapid consolidation and globalisation of the world's agricultural industries meant free trade, the break down of tariffs and a reduction of trade barriers would soon start to impact more heavily on iconic businesses like Viterra's Joe White Maltings.

He said now that Swiss giant Glencore International had secured its hold on the Canadian company Viterra, smaller companies like Viterra's Joe White Maltings might not survive in Glencore's portfolio.

Although Glencore later denied the claim, Mr Winney said he didn't think the Joe White Maltings business really fitted with what Glencore had done in other parts of the world.

"I think Joe White Maltings could potentially be something which comes onto the market," he said.

Producing close to 60 per cent of Australia's malt, Joe White Maltings was also a significant player on the world market.

"Of course it's not the first time the industry has seen grain companies merge together and then go international," Mr Winney said.

"Big moves like this provide grain processing concentration and reach."

But he said it would remain to be seen what might come of some of Viterra's "smaller" business arms.

He said large global companies like Glencore would become even bigger players in the next 20-30 years due to globalisation.

But further industry whispers also suggested there might already be a prospective buyer waiting in the wings.

One grain marketer tipped CBH to be the front runner if Joe White came onto the market but CBH also denied the claims.

In a statement to Farm Weekly CBH said it was always investigating potential investment opportunities to create and return value to WA growers but it would never comment on specific assets, whether they were under consideration or not.

Viterra was the largest malt producer in Australia with its seven plants including its specialty malting facility in Ballarat that produced more than 550,000 tonnes a year.

Malt produced by Viterra is sold under the Joe White Maltings brand name and supplied to brewers in Singapore, Japan, Thailand, Vietnam, Korea, Indonesia, Cambodia, Papua New Guinea, Philippines and Malaysia as well as Australia.

Before Glencore's purchase of Viterra, Viterra's integrated barley sourcing, combined with its superior technology made Joe White Maltings Australia's number one export malster.

Page:
1
Date: Newest first | Oldest first

READER COMMENTS

Jock Munro
2/04/2012 6:08:45 PM, on Farm Weekly

Allan Winney played a key role in the removal of Grower's marketing rights across Australia. He was particularly active in NSW when growers lost their coarse grains and oilseeds vesting rights.

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