WEST PERTH, AUSTRALIA — CBH Grain announced on Aug. 16 that it has reduced its payment terms for its cash and pooling options.
This is a significant change for cash contracts as it will mean Western Australian growers will now receive payment within seven business days from the date of nomination to CBH Grain, the company said. Previously, growers received payment within 15 business days from the end of the week that the grain was nominated.
CBH Grain General Manager Brian Mumme said the change to payment terms will mean pool payments will now be delivered faster.
"Our pool participants who use the advance payment option have enjoyed payment terms of seven business days since the 2008-09 season," Mumme said.
"However, this payment will now be delivered within seven days from the date of nomination rather than the end of the week the grain was nominated.
"Fast and timely payments are important to growers and assist them with their cash flow. For this reason, we've improved our payment system - making it simpler for growers and enabling them to access their payments faster."
Mumme said CBH Grain takes pride in its ability to deliver accurate payments to growers and on time.
"We are focused on looking for ways in which we can improve our systems and services, and deliver real value to growers," he said. "One of the ways we're delivering on this is by providing growers with a loyalty payment again this year."
Mumme said growers who nominated their grain to CBH Grain between April 1, 2009 and March 31, 2010 would be eligible for this year's loyalty payment. The exact figure for this year's payment will be confirmed next month.