CBH reduces supply chain fees

by Holly Demaree-Saddler
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CBH facility in Port of Albany
CBH facility in the Port of Albany.
Photos courtesy of CBH.
 
WEST PERTH, AUSTRALIA — The CBH Group will reduce storage and handling fees by A$4 per tonne from the upcoming 2018-19 harvest. The co-op said it is continuing its commitment to provide the lowest cost, most efficient grain supply chain for Western Australian growers.

Jimmy Wilson, chief executive officer of CBH, said the fee reduction will support CBH’s growers to compete with lower cost grain from other international origins of supply.

Jimmy Wilson CEO of CBH
Jimmy Wilson, chief executive officer of CBH

“The commencement of a recent program to improve efficiency and reduce costs across our business, as well as CBH’s strong balance sheet, has provided us the confidence to return this value directly to our growers in lower fees, starting this harvest,” Wilson said. “We know that the international competitiveness of Western Australian grain is under threat from fierce competition from the Black Sea and reducing our supply chain fees and improving efficiency is essential to keep grain growing viable for generations to come.”

The A$4-per-tonne reduction will be split evenly between grower and marketer fees to ensure growers have an attractive pathway to get grain to the international market at the lowest cost possible and that grain marketers continue to see Western Australia as an attractive destination to accumulate grain.

“Ultimately all supply chain costs are borne by the grower and we expect to see the full $4 per tonne value returned to them through reduced receival fees and competitive pricing for grain,” Wilson said. “Going forward, CBH will endeavor to keep fees flat as we continue to seek further supply chain efficiencies.”

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