Recent comments by: Interested Party
Deregul8 as I said stop bleating and do something about it or leave it to those who seem to care!
I've said this before but if farmers are not happy with their CBH Board they should put up or shut up after all it's the farmers who have the vote. Instead of bleating nominate for a position on the board and do your bit to make a change!
Very interesting. In looking at the CBH balance sheet I would suggest funding is not an issue. Listing is another matter as grower control is immediately lost. Ask the farmers over here on the east coast what they think about listing and where it has left a lot of them.
An interesting read however the statement made that "the CBH Board has no right to refuse to allow AGC into its books" is unbelievable. Why would any business in their right mind let a competitor view their confidential books? The other interesting comment was about growers not trusting the CBH Board to review the structure. If this is the case why did WA farmers vote their board members back in? It sounds like fun times ahead in the West.
Yet another interesting development in the west I see and who will foot the bill for the threatened legal action? - the very farmers who have suggested a fighting fund for Mr Tutt. If I were Mr Tutt I would be hitting the AGC to foot any legal bill he may have. You do not have to be blind Freddy to work out this group would have leaked the partnership with Mr Tutt to try and give themselves more credibility. Very poor form again from what appears to be a disorganized group talking big. If this is how they intend to operate I would suggest Mr Tutt runs as far away from them as he can!
I see the sheep brigade are out bleating again. Short term gain long term pain comes to mind! Good luck with it and privatize at your peril. Trust you don't end up like growers over here. Slim growers and fat investors.
Sorry Ray but wasn't it farmers that sold out in the first place?
If the sale of CBH was the great saviour why was no one game to bring it up yesterday? There were a couple of the PGA wingers commenting above so where's your voice when YOUR SHEEP MENTALITY thinks it counts? Put up or shut up!
"give that equity to those who paid for it" that's interesting and I'm not sure how you would ever work out who "Paid For It". I understand there was a 10 year revolving debenture system whereby farmers paid the cooperative an amount per tonne which was then refunded 10 years later. I assume that's what their equity is. The farmers dividend I would have thought is the facilities and services provided. Therefore the value of these, although hard to determine, I would have thought would need to be taken off any so called equity. Very interesting exercise. The farmers may owe the cooperative?
Drowning, you have me really confused now. How or why is it YOUR CBH EQUITY? Just because you put grain in the bin?
deregul8 come over to the east if you think your charges are over the top and remember you put those farmer directors in place!
Terrace if you are a WA farmer YOU gave the CBH Board the right to make that decision by voting the farmer directors in! I also note that 3 of them were returned recently so I would guess, politics aside, there must be a fair bit of respect for them.
The comments about another Wesfarmers are interesting. Lets look at them and see what they did for the initial farmers after listing! The investors, including farmers, did very well but where did the service go at a grass roots level? Everyone seems to focus on their share price and not back at the grass roots. So the average farmer who obtains the cash and shares will most likely cash out some or all of their shares and go from an investor to a price taker. Another Wesfarmers - Good luck!!
consolidated (another one of the sheep?) I think you have a small mined way of thinking. The CBH Board of Directors would be derelict in their duty not to employ a well versed consultant to assist with this. My guess is the cost to WA farmers would be well in excess of $1m without their fees so your so called FACT is FICTION right from the start. X I think you may very well be right with the sheep over there pushing for it. More cost for WA farmers. Don't end up like the guys over hear where they have lost control of their destiny!
deregul8 speaking of sheep... As I've said before you guys in the west vote farmer directors onto the board so put up or shut up! Also you seem to have some in-depth information you are not sharing here when speaking of covering up losses. I suggest you expose these as their external auditors will be interested in this.
dereg drowning and the rest of the sheep - before you go bleating spend some time in doing what I did which was pulling out the stats across a 15 year period which looked at the "basic" storage and handling charges farmers were paying and under a normal?? commercial business scenario what they would be paying. This was across the major players and farmers in the west were literally miles ahead. Put your business hats on and lose the emotions and you might be surprised.
I don't understand why CBH would not go it alone if WA farmers wished to list their Co-op rather than fatten the purse of GrainCorp and others. It will be interesting to see if it goes to a vote and how much notice they have taken to previous listings over here (east coast). I see boris is still bleating - tick yes to ensure GrainCorp's future you mean boris!
Deregul8 try to make some informed comments and stop talking a lot of rubbish. Even from the other side we can see this. $100mill trading loss? we must be looking at different annual reports. I've been reviewing the one on their web site so could you please post where you are reading the $100mill loss or is this something else you don't understand?
Genex when you use those figures I agree something is very fishy over there and requires some further digging.
That's interesting and thank you Genex but I seem to recall Brookfield's track access fees went up 15% on 1 July this year let alone what happened prior to that so I'm not sure why you think they have remained the same for the past 2 years? We have been watching the whole saga unfold with more than a passing interest.
In a domestic market situation I can see why this would be supported but in a 90% export market such as they have over in WA why would you give the globals a free kick?
Deregul8 your comments have had me pondering why competition hasn't already started "building up country mega sites in Kwinana to deliver a death blow to the coop"? There must be a reason as "they" could have done this years ago but have chosen not to. As you appear to be the font of all knowledge in the west could you please explain why this hasn't happened?
Deregul8 I've said this before but if you think CBH is charging "far too much" come over to the east and compare the price and service!
Boris if it were only a few road upgrades I would agree but keep digging. You have a point about the WA "State govt in the 1930's legislated it to be a monopoly bulk handler' I will try and follow up on this as legislation back then was brought in to be on a even keel and not just one way as this is implying.
Brad in the reading and chatting I've done I think you need only look at past performance and compare the bottom line, forget everything else just what you get in your hand at the end of the day, to farmers elsewhere and you will find the answer. I don't think anyone in business now-a-days can give assurances about anything but, as I said in another post, you may wish to ask your WA govt Ministers about more than a few dollars having been spent which resulted in directly assisting Bunge. The playing field would seem to be very rough and certainly not level.
Drowning in debt how can you blame a co-op for your poor business decisions? A co-op by its very nature is there for all members not just those who have dug a hole and forgotten to take a ladder to get themselves out. This is the real world and farming is a business.
Brad I think you need to read the full picture on the port access situation which is not very hard. From what I can see CBH is asking for a level playing field unlike Bunge who will not be subject to the same level of regulation. Am I reading this right or is there something else here?
Brad they are a couple of good questions and that is why WA farmers vote and put WA farmers on their board with a mix of special skill professional directors. In reading the annual reports I'm sure a lot of east coast farmers wished that amount of funding went back into their networks. It is difficult in comparing east and west due to the differing impacts of the domestic market. One thing is certain east coast farmers have had no choice but to spend big dollars on infrastructure due to the inadequate storage & handling facilities brought about through privatisation. some ill informed comments
interested party, farmers will be 'saddled with higher fees' as the Chinese and Bunge cherry pick the profitability out of CBH.
At the moment there is no incentive to remain loyal. A $2 share doesn't cut it. Corporatise is the only option for CBH to survive. You don't think these two entrants won't bring other players into other zones? - Deregul8 as another poster said quite well "your'e a fool if you think CBH are standing still. I think your'e a bigger fool if you feel selling off CBH is the answer but if that's your stance good luck. No one has said someone will buy it!!
Taxpayer let them sell CBH and end up with higher fees and lower prices. The only issue with this is a lot more foreign ownership will happen very quickly and grain will be shipped to their markets to secure their food supply. We will then be left with higher basic food prices. A no win situation all round!
Well written Bill but I'm not sure of this fairness line. No doubt some farmers are suffering and are in need of funding but is CBH the answer I think not. To me I've yet to see an argument that is nothing but short term relief and if the seasons continue this way some of the suffering farmers will be in the same boat a few years down the track. But then ALL farmers will be saddled with higher fees and facilities which will not have the same funding to be maintained! Is this fair on those who have found ways to survive? No way! Where's the fairness in this?