Grain handling cooperative CBH Group has announced it delivered a rebate of up to $10.50 per tonne for growers in the 2017-18 season.
CBH said this week growers who delivered and sold grain to the cooperative received a $7 per tonne rebate from the cooperative’s Marketing and Trading division, and a $3.50 per tonne rebate from its Operations division.
Overall, the Group delivered $94.5 million in grower rebates in 2017-18.
CBH chief executive Jimmy Wilson credited effective control of corporate costs, above average harvest volume for the year, and ongoing capital management discipline for the rebate figure.
“CBH has returned another large rebate for our growers, on top of a $4 per tonne reduction in Operations fees for the 2018-19 harvest announced in June,” Wilson said.
“Importantly, we have provided a significant return while continuing to invest in the network, with CBH spending approximately $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.”
Wilson said the rebate from CBH’s Marketing and Trading division was the largest ever, surpassing the previous record of $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 $3.50 per tonne return.”
CBH returns rebate benefits to growers as an offset against 2018-19 fees.