Grain handler CBH Group has decided to maintain reduced supply chain fees in 2019/20, after lowering them $4 a tonne ahead of the 2018/19 season.
CBH general manager for operations Ben Macnamara said the grain cooperative’s commitment to reducing paddock to port costs would be maintained despite a $240 million capital and maintenance investment in the storage and handling network this year.
“Improved organisational efficiency and productivity over the past year, while ensuring we consider the overall picture of the cost environment grower businesses face, has allowed us to achieve substantial cost benefits,” Macnamara said.
“We’re really pleased to continue to pass this value on to growers up-front by holding our fees at the reduced rate implemented last season.”
CBH, which is owned and controlled by more than 4,000 WA grain growing businesses, has placed a priority on international competitiveness.
Macnamara said the cooperative’s work to build a world-class supply chain, and its work to keep fees under control, were made with that aim in mind.
“CBH continues its commitment to offer Western Australian growers the most efficient and cost-effective network possible, to keep growers competitive against lower cost grain from international markets such as the Black Sea,” he said.