CBH Grain, Plum Grove extend agreement

by World Grain Staff
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WEST PERTH, AUSTRALIA — CBH Grain and Plum Grove announced on May 25 an extension to the Pool Management Agreement for an additional five seasons.

Under the agreement, CBH Grain and Plum Grove will continue to jointly offer the Managed Pool and Protection Plus products. Both organizations will also continue to offer their own separate harvest pool products.

CBH Grain’s Head of Accumulations Richard Simonaitis said renewing the agreement with Plum Grove aligns with the CBH Group’s key objective of creating and returning value to the growers of Western Australia.

“The relationship with Plum Grove allows WA growers the ability to diversify their marketing program, access the unique skill sets of two different organizations and provide the scale to enable the market development activities that CBH Grain have been undertaking in the interests of WA growers for over 80 years,” he said.

Plum Grove’s Managing Director Andrew Young said the success of the relationship can be evidenced in the independent Kondinin Group Wheat Pools Performance report.

“Either of the jointly managed products, the Plum Grove Harvest Pool or the CBH Grain Harvest Pool have earned a rating by Kondinin as a best pool provider in the last six seasons,” Young said.

Under the agreement all physical wheat sales and payments to growers for the Managed Pool, Protection Plus Pool and the Plum Grove Harvest Pool are managed by CBH Grain.

For the Jointly Managed Pools, the foreign exchange and derivative hedging decisions are made jointly by CBH Grain and Plum Grove.

For the Plum Grove Harvest Pool the hedging decisions are made exclusively by Plum Grove.

Growers are reminded that the Managed Pool is currently open for contracting and will close on May 31 or sooner if required volumes are achieved.

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