CBH breaks multiple records in 2014

28 Jan, 2015 01:00 AM
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IT was a year of records for CBH in 2014, with growers delivering a record harvest of 15.9 million tonnes in record time and collecting record rebates of $53.6 million.

The co-operative itself recorded a profit of $149.2m after the rebates, which increased by $48.8m on the 2013 result.

In its latest annual report sent out last week, CBH said the marked increase in rebates collected by the 4200 growers can be attributed to new rebates through the continuing Grower Patronage Rebate Program.

CBH chairman Wally Newman said the program, which consists of an operations, marketing and trading and investment rebate, equated to a "particularly pleasing" $4.55 a tonne.

"With a record harvest and CBH implementing a number of initiatives to drive value within the business, it is only fitting that this is returned to our growers in recognition of their patronage," Mr Newman said.

He said a focus was also made on network investments which in turn benefits growers and $153m was spent on capital works and maintenance.

Mr Newman said this meant CBH had invested close to a billion dollars on the network in the past decade, with a focus on improving site turnaround times and asset maintenance.

CBH chief executive officer Andrew Crane noted the more significant projects undertaken included a six-year effort to refurbish the Geraldton silos worth $35m and $41.6m in refurbishments at Kwinana port in the past 12 months.

Throughput works were also completed at a number of sites including Narrakine, Doodlakine, Pingrup and Miling.

He said annual fees were set to ensure capital works would continue every year despite seasonal changes.

"Hence, in record seasons you will see a large surplus," Dr Crane said.

"You can be assured that the co-operative business model ensures all of this is returned to you via the network, low storage and handling fees and grower rebates."

During 2014, CBH established an office in the US to connect with the US and Canadian wheat customers locally and established an independent trading and distribution company in Vietnam, adding to offices in Japan and Hong Kong.

The 50 per cent interest in Interflour Group returned $12.1m to CBH and there are plans for further expansions by this entity with CBH committing up to US$17.5m during the next three years.

Dr Crane said the success of CBH as the largest co-operative in Australia was enabling long-term plans for growth.

"We have the unique advantage of being able to create value through our storage, handling and freight services, our marketing and trading expertise and our investments," he said.

"The co-operative today remains strong and is committed to delivering the best financial and social outcomes for growers and the industry in the long term."

In the 2013/14 financial year, CBH traded more than 10mt of grain, equating to more than $3.9 billion.

This accounts for approximately 35 per cent of the Australian grain export industry across all major grains and oilseeds and ranks CBH as the country's largest grain exporter, exporting to more than 30 countries and in excess of 250 customers.

In the second year of publishing CBH executive salaries, the report outlined that on top of his $819,000 salary base, Dr Crane also received a retention bonus of $527,000.

Mr Newman received $105,000 in directors fees while holding deputy chairman, chair elect and chairman positions throughout the year, former chairman Neil Wandel received $158,000 in directors fees and deputy chairman Vern Dempster, $101,000.

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READER COMMENTS

X Ag Socialist
28/01/2015 12:08:43 PM, on Farm Weekly

D8 ?
Deregul8
31/01/2015 9:37:18 AM, on Farm Weekly

They should be breaking records, they have some of the highest storage and handling charges of all the major exporters.

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