CBH Group Chairman Wally Newman said this was the cooperative’s first move towards a regional oats strategy, enabling the CBH Group to support the development and growth of the oats industry in Western Australia.
“The acquisition of Blue Lake Milling provides a strong financial return on its own. It offers WA growers another diversified investment that creates an alternative income stream that can generate a rebate to help lower their storage and handling charges,” he said. “But more importantly the investment provides the cooperative with the ability to tap into the southeast Asian oat market and develop a significant regional presence.
“There is strong growth in grain consumption throughout this region with a rising middle-class, increasing population and a move towards higher protein grain products such as wheat and oats over rice.
“Western Australian grain growers are well positioned to take advantage of this growth in southeast Asia. Bringing together Blue Lake Milling’s technical and industry expertise with CBH’s experience in the region, we can build a sustainable long-term demand for WA oats.”
Blue Lake Milling specializes in oat milling and produces rolled, quick and instant oats. It also innovates, manufactures, packages and distributes an extensive range of niche cereal flakes, bran, flours and premixes.
It has a total annual capacity of 60,000 tonnes over two sites located in Bordertown, South Australia, and Dimboola in Victoria.
“Blue Lake Milling will continue to trade as Blue Lake Milling with the current management and organizational structure. We look forward to working alongside the dedicated team that has built this successful business to continue to service its valued customers,” Newman said.