WEST PERTH, AUSTRALIA — Growers who delivered and sold grain to the CBH Group in 2017-18 will be returned a rebate of up to A$10.50 per tonne.
The total amount comprises a A$7 per tonne rebate from the marketing and trading division, totaling $48 million, and a A$3.50 per tonne rebate from the operations division, totaling A$46.5 million.
Jimmy Wilson, CBH chief executive officer (CEO), said the co-operative’s effective control of corporate costs, above average harvest volume for the year and ongoing capital management discipline had provided the opportunity to return surplus capital to growers.
“CBH has returned another large rebate for our growers, on top of a A$4 per tonne reduction in operations fees for the 2018-19 harvest announced in June, further delivering on our commitment to keep WA growers competitive in the international market,” Wilson said. “Importantly, we have provided a significant return while continuing to invest in the network, with CBH spending approximately A$200 million on network capital and maintenance this financial year, and more investment next year.
“Of this spend, more than $130 million includes storage and throughput enhancement projects at sites and terminals across the network, the majority of which is to be completed in time for the 2018-19 harvest.”
According to CBH, the marketing and trading rebate is the largest ever returned from the division, surpassing the division’s previous record of A$6.25 per tonne returned in 2016-17.
“The domestic and international grain markets had a significant rally post the 2017-18 harvest and our Marketing and Trading division has been able to capture this value with the benefit being returned directly to growers,” Wilson said. “For the Operations division, an above average harvest of 13.28 million tonnes received, combined with a renewed focus on cost control, led to the A$3.50 per tonne return.”
The rebate benefit is returned to growers as an offset against 2018-19 fees in line with their selected preferences and is made available to them on the CBH LoadNet rebate portal.