Pick of the Crop - March 2016

NEWS FROM YOUR CO-OPERATIVE

>> IN THIS ISSUE

3 What’s happening with your network?

4 CBH fertiliser opens its shed doors

6

PICKof THE CROP Harvest yields 13.6 million tonnes for the state As thoughts start heading towards seeding, we thought we’d take a brief look back at the season just gone.

8

CBH’s General Manager of Operations, David Capper said that despite a string of adverse weather events, it was another solid year for grain production in WA, with the co-operative receiving 13.6 million tonnes for the 2015–16 harvest.

Pre-Pay Advantage changes

“It is fair to say it was a season of both highs and lows,” Mr Capper said.

CBH 2016 Asia Grower Study Tour

9 Free DailyGrain memberships

10 Community Corner

“While things started out as promising, a dry finish, frost and hail did its best to knock us back from a possible record crop. On top of this, our growers in Esperance suffered terrible losses due to unprecedented fires and winds across the region in late November.

“In addition to our material donation to the fire appeal, CBH has also been

working with growers in practical ways to help recover the most from their crop and get farming again.

“It is pleasing to note that growers across the state donated 379.4 tonnes of grain to assist growers in the fire-affected areas of Esperance.

The profits of the sale of this donated grain will go to a number of local groups on the ground.

“Despite these challenges of nature, parts of the Northern Kwinana zone had an exceptional year. The fact that we saw an above average crop in a year where there was next to no rain in July and September is also a credit to growers and their ingenuity when it comes to farming practices and productivity.”

MARCH 2016 ISSUE | FORTY TWO

receiving more than 1.2 million tonnes at the Chadwick site and CBH and Watco moving record tonnes to port by rail in December,” he said.

“All of these records have been possible because CBH has consistently invested in improving the efficiency of the CBH supply chain.”

Harvest Receivals for 2015–16 Geraldton

2.3MT

TOTAL

13.6MT Kwinana

5.9MT

Mr Capper said there were a number of records achieved throughout harvest.

“These included handling Australia’s largest ever canola shipment,

Esperance

2.7MT

Albany

2.7MT

02 | CBH GROUP

GROWER PAYMENTS TO CBH: CHANGE TO CHEQUE PAYMENT RECEIVALS Growers may have noticed a change to the address details for payments by cheque on their CBH tax invoices.

Prior to October 2015, the payment advice on CBH tax invoices showed a Lockbox facility in Perth.

This facility has since closed and, on request from the Commonwealth Bank of Australia (CBA), the address has been changed to their Lockbox facility in Melbourne.

Growers can now pay their cheques directly to this CBA Melbourne address or, alternatively, post their cheque directly to CBH Group, Att: Accounts Receivable, GPO Box L886, Perth WA 6842.

For more information, contact Hadyn de Jonge, CBH Billing Services on 9237 9669.

A NOTE Welcome to the first edition of Pick of the Crop for 2016.

This year, we’re making some changes and will now be bringing you Pick of the Crop as a quarterly publication.

We are also giving you the option to receive Pick of the Crop via email.

You will find a preference form included with this edition.

We look forward to continuing to provide you with coverage on all the issues and important information affecting your co-operative, your farm business, your community and the grain industry in WA throughout 2016.

Esperance Fire Appeal A big thank you to all those growers who donated grain into the special account set up by CBH during harvest.

A total of 379.4 tonnes was donated across the state and profits from the sale of this donated grain will go to support a number of local groups on the ground to assist the Esperance community in its recovery from the fires.

Those receiving funding include: • Beaumont Hall • Blaze Aid • Cascades Recreation Centre • Fast Fill Pumps and training for local communities • Grass Patch Community Centre • Munglinup Community Centre • Neeridup Bushfire Brigade • Salmon Gums Development Group • Scadden Country Club • Scadden Memorial

MARCH 2016

CBH GROUP | 03

What’s happening with your network?

The CBH Board recently agreed to a five year maintenance spend and capital investment plan of $150 million per annum from 2016–17.

CBH Group Chairman, Wally Newman notes this decision follows a long and comprehensive review of the entire CBH storage and handling network.

“Last year, we discussed a review of the CBH network with growers across the state, aimed at driving efficiencies in the supply chain from the farm gate to world markets,” Mr Newman said.

“We are now confident that, after two years of supply chain analysis, asset assessment and engineering costings, we have the framework of a robust, efficient network plan for the future and have committed to a spend of $150 million per annum over the next five years.

“There has been a lot of commentary in recent times over the functionality of the Board and its ability to make timely decisions, particularly relating to the network. Let me just say that, having served on this Board in various capacities over the past 16 years, I have seen lows and highs.

Today, notwithstanding some robust and healthy discussion, your Board is functioning at a high with the appropriate mix of farming, strategic and commercial skills.

“Yes, we have taken our time over the Network Strategy and we make no apologies for this. The network is the core of

this co-operative and it is important that we get it right for the future.

number of other projects set to commence before the end of the year.

“The Board firmly believes that the Network Strategy we have signed off on will result in your co-operative being able to deliver a modern, highly efficient and competitive supply chain from surpluses obtained from average harvests without the need to increase storage and handling fees.

To find out more about the plans for your network, please join us at the upcoming CBH Grower Meetings in March and April.

“The reshaped network will provide the harvest service growers need and meet export capacity targets.

“As the leading grain handler in Australia, our network has been in constant upgrade. Last year the co-operative invested $160 million into the network and has invested $898 million in capital and maintenance over the last five years.

“As we have previously discussed with growers, the network is envisaged to be consolidated. Smaller sites will be used as required until larger adjacent sites grow to accept the increased capacity required as these smaller sites reach the end of their useful life. Growers will be advised well in advance of any site closures as the new network develops.

“We are on our way towards a network that will see more tonnes to port, better site efficiency and ongoing competitive storage and handling fees for growers.”

Key projects for 2016 are already underway and include works at Lake King, Chadwick, Kalannie, Bodallin and Mirambeena, with a

Details will be available at www.cbh.com.au

AGC UPDATE As most of you are aware, Australian Grains Champion (AGC) has presented the CBH Group Board with a proposal to corporatise CBH. The proposal is complex and highly conditional and will take some time to asses.

At the time of writing, the Board is still considering the proposal and will assess it in light of what is best for CBH members now and into the future, taking advice from CBH’s financial advisor Deutsche Bank and legal counsel, King & Wood Mallesons.

We undertake to keep members informed via direct communication as this process unfolds and welcome your feedback.

For the latest updates on the proposal, visit www.cbh.com.au/ agc-proposal or send us your feedback via email at agcproposal@ cbh.com.au

MARCH 2016

04 | CBH GROUP

CBH Business Relationship Manager, Matthew Stenhouse, inspects the new MOP (TBC) stack at Kwinana.

Annual Report

opens its shed doors The CBH Group has officially opened the doors to its new Kwinana and Geraldton fertiliser storage facilities.

CBH Fertiliser Manager David Pritchard said this was the result of twelve months of work developing the CBH Fertiliser business and constructing infrastructure to support the investment.

“The shed construction started last July and we are really pleased with how it has come together,” he said.

The Kwinana facility has a 25,000 tonne capacity and the Geraldton facility has a 15,000 tonne capacity.

Both sites have a 250 tonne per hour blender which was sourced from the USA. The sheds have been operational since December; the first loads of fertiliser were picked up in the first week of January.

MARCH 2016

“The focus of CBH Fertiliser is to return value to growers by adding competition to the market and using the size and scale of the co-operative to find efficiencies and reduce costs,” Mr Pritchard said.

“We’re really pleased that growers have been supportive of the project and we hope that more growers will be encouraged to give CBH Fertiliser a go now that the facilities are officially open for business.”

Have you got your copy of the 2015 Annual Report?

If not, visit the website to download a copy today or contact the Grower Service Centre on 1800 199 083 to receive your copy or to register to receive future copies via email.

CBH GROUP | 05

Statement highlights

value delivered to growers The 2016 Grower Value Statement was sent to growers at the end of February and identifies the areas in which CBH is creating and returning value to growers in Western Australia.

JOIN THE CBH GROUP’S GROWERS ADVISORY COUNCIL. NOMINATIONS ARE NOW OPEN. The CBH Group is looking for Western Australian grain growers who have a genuine desire and commitment to see the CBH Group continue to grow and develop for the benefit of our growers.

Council positions for 3 year terms are currently available and all grower members or member’s representatives are invited to nominate for a position.

HERE’S A SNAPSHOT OF THE KEY HIGHLIGHTS: • QUALITY OPTIMISATION delivered an additional $2.55 per tonne on average to growers’ wheat sales.

• $85 MILLION in transport savings delivered by CBH and Grain Express to WA growers.

• $195 MILLION in storage and handling savings when benchmarked against the rates of all major storage and handling providers in Australia.

INFORMATION To obtain a copy of the selection criteria or for more information please contact Brianna Peake on 9416 6123 or visit the website at www.cbh.com.au

NOMINATIONS CLOSE 12 NOON, 25 MARCH 2016.

• $2.7 BILLION in grain payments made to WA growers.

• $177.4 MILLION invested in capital works and maintenance on the storage and handling network.

• $8.4 MILLION Interflour Group profit attributable to the CBH Group.

• $1.6 MILLION invested in regional communities through the CBH Community Investment Program.

• Regional employment of 548 full time and 2,033 harvest casuals across the state.

Grower Service Centre 1800 199 083 cbh.com.au

MARCH 2016

06 | CBH GROUP

2016 ASIA GROWER STUDY TOUR

CBH 2016 Asia Grower Study Tour

Register now!

“This trip has given more confidence that we’ve got a sta market that CBH is supplying in and that our quality is seen as the best and that WA growers c keep doing what they’re doing.

Express your interest today!

The CBH Group Grower Study Tour is back for 2016!

This year, we are inviting 20 growers to take part in a nine day trip through China and Vietnam to gain a unique insight into the markets, customer requirements and culture of these regions.

While the itinerary is still being finalised, the tour will provide participants with an eyeopening opportunity to gain an insight into our international neighbours and a greater understanding of the discharge, storage and processing of Western Australian grain in Asia.

The agenda will include visits to various flour mills, feed mills, breweries, local markets and ports.

If you, or a member of your farm, are involved with marketing your grain, we invite you to apply for the 2016 trip. Please note that only one individual per farming business can be accepted.

2016 TRIP DETAILS Indicative Tour Dates: 6–13 September*

EXPRESSION OF INTEREST

• Expression of Interest closes: 14 March 2016 • Selected growers advised: 28 March 2016 • Selected growers to confirm final attendance on trip: 4 April 2016

REFLECTING ON THE 2015 ASIA TOUR In March 2015, 16 growers embarked on an eight day trip to Indonesia and Vietnam to meet key buyers and see firsthand why Australian grown grains are such important commodities to our Asian neighbours.

Tour highlights included a trip to Interflour, Vietnam to get a firsthand perspective of the flour mill’s operations, visiting the Heineken factory and witnessing WA barley in action, a trip to the Elders Feedlot in Indonesia and a tour through the Bogasari Flour mill and Indofood pasta factory in Indonesia to see the end products of Australian wheat.

• CBH will cover all costs excluding flights

There’s no doubt that the 2016 Grower Study Tour will once again prove to be a valuable and rewarding experience.

Feedback from the growers who attended the 2015 Grower Study Tour all concluded that this is a trip not to be missed.

• CBH will cover travel insurance costs.

NOTE: If you plan on extending your trip then you will need to organise your own travel insurance for the entire trip

If the 2016 Grower Study Tour sounds like something for you, then don’t hesitate to call your local CBH Business Relationship Manager and express your interest today.

Key consideration points:

We hope to have you join us.

Indicative Cost: Approximately $3,500* ex GST (includes return economy flights plus all internal flights)

• Before applying for the expression of interest, please ensure you have a current valid passport (valid for 6 months after the travel date) * subject to change.

MARCH 2016

Jenny Wiles, Popanyinning

To register your interest, contact your local CBH Business Relationship Manager. Key deadlines listed below:

1

4

2

able nto

CBH GROUP | 07

“We put it in the ground, watch it grow and help it grow all season, we put it into CBH and we go on holidays and that’s it.

“To come over and see in Asia, a flour mill, eat the end product and get a taste of the end product, it’s been a huge experience. Very eye opening.”

Chris Hallam, Grass Patch

can .”

“We hear about Asia and I wanted to see what it was about. It’s exciting; you can see the future here. Australian grain is definitely respected.”

John Scotney, Badgingarra “This trip consolidates the importance of our supply chain from WA through to Asia and out to the customer. It highlights the importance of relationships with CBH, the growers and the consumer. We can’t work hard enough to keep these relationships alive and growing.”

Frank O’Hare, Cunderdin

“It’s been good to see what is being done over here and learn how it can benefit us in the future.

I think it’s been useful to see the supply chain at this end and hear about the growth ability in this country.”

Russell Burges, Meckering

3

5

6

(1) Grower Study Tour participant, Michelle Yewers, learning about the end pasta products at the Indofood Pasta Factory in Indonesia.

(2) Grower Study Tour participant, Chris Nock, at the Elders Feedlot in Indonesia. (3) Making delicious baked goods at the onsite bakery at Interflour head office, Ho Chi Minh City. (4) Visiting the Heineken factory in District 12, Ho Chi Minh City. (5) Grower Study Tour participant, Russell Burges, sampling Mi Goreng noodles at the Indofood Pasta Factory in Indonesia. (6) 2015 Grower Study Tour participants at Interflour, Vietnam.

MARCH 2016

08 | CBH GROUP

Pre-Pay Advantage changes benefit growers Keeping silverleaf nightshade under control Silverleaf nightshade is a summer-growing perennial herb that invades crops and has been known to cause yield losses up to 75% in the eastern states of Australia.

While not prevalent around Perth, Western Australia, it is known to be present in and around Katanning, Narrogin and Wickepin.

The Silverleaf Nightshade Weed Project, jointly run by Murrumbidgee Landcare and the New South Wales Department of Primary Industries (funded by MLA and AWI), has held several workshops in Western Australia to help growers tackle the problem of silverleaf nightshade.

Here, Murrumbidgee Landcare Agronomist, Phil Bowden, shares some tips on how to best control this pest.

Remember that silverleaf nightshade is a very persistent weed. If controls are not applied to stop the seed set and run the root reserves down, it will affect the economics of your farming operation.

• Timing of spays over summer to prevent seed set is important, as is the use of adjuvants to get good leaf penetration. Ensuring the plant is in a condition to take the chemical into the root system is also critical.

• Herbicide application after a rain event, when the plant is fresher, can promote translocation of chemicals.

• Have a weed control plan of action that is flexible, depending on the season.

• Lowering rates of herbicide to give slow action often gives better results by improving translocation to roots.

• Consistently apply controls every year in summer and autumn, over a number of years, to bring the numbers down.

For more information, contact Karen Herbert on 0438 297 310 or Hanwen Wu on (02) 6938 1602 or email weeds@mli.org.au

• Monitoring the weed before spraying is important for success.

MARCH 2016

CBH has revised its Pre-Pay Advantage (PPA) product, extending the repayment period to 31 July 2017, subject to grain being delivered to CBH by 31 January 2017.

Pre-Pay Advantage is a pre-payment option for grain growers wanting to access early cash flow prior to harvest.

CBH Group Financial Products Manager, Jacinta Kelly, says the change provides growers with an extra six months to price their grain and repay their PPA loan and tonnage commitment.

“We’ve also reduced the minimum application size from 300 tonnes to 250 tonnes, which opens up the opportunity for more growers to apply for the product,” Mrs Kelly said.

“We’ve achieved some great milestones with PPA over the past few years, including lending more than $100 million in pre-harvest funds to WA growers in 2015 and we hope to build on this in 2016.”

For more information or to apply for Pre-Pay Advantage, contact your local Business Relationship Manager.

CBH GROUP | 09

Grow your business with FREE membership to DailyGrain Now is the time to subscribe or renew your subscription to DailyGrain, with all CBH members eligible for free access to DailyGrain’s Basic Membership for 2016.

DailyGrain Product Co-ordinator, Lauren Taylor notes that Basic Membership provides members with a range of benefits to assist their farm business, including free access to live pricing throughout the year.

“Access to live pricing is important all year round, particularly at harvest, when most growers will sell the majority of their grain and when it is not unusual to see prices fluctuate $10-$15 in one day,” Miss Taylor said.

“Basic Membership also provides users with weekly SMS and email price reports for the grades of their choice, as well as access to the website, which contains prices and estimated pool returns for all marketers across all wheat grades and other commodities in WA.

“In addition, users can request price updates at any time, via SMS on Demand, and view historical prices charts and set up their own marketing plans.”

For those wanting a little bit extra, DailyGrain offers Premium membership for $350 plus GST. Premium membership provides users with all of the features of the Basic membership plus daily SMS and email price reports, access to the DailyGrain app, the ability to set price targets and be notified when these are reached, and the ability to link your account to CBH’s LoadNet.

DailyGrain Product Co-ordinator, Lauren Taylor.

“The ability for Premium users to link their DailyGrain account with their LoadNet account is one of the greatest features of DailyGrain and is possible because of our partnership with CBH,” Miss Taylor said.

“Every time Premium users log into DailyGrain, their load information will update directly from LoadNet. This enables members to manage all of their stock from the DailyGrain website and, come harvest time, nominate loads and sell their grain all from the one place.”

For more information or to subscribe today, visit www.dailygrain.com.au or contact Lauren Taylor on 9416 6244 or email ltaylor@dailygrain.com.au

Grow your business with DailyGrain.

Renew or subscribe now and access the most powerful price discovery tool for WA grain growers!

Make the right decisions for your business with DailyGrain’s integrated online system. Accessible across all platforms, DailyGrain gives your business complete access to comprehensive price charts, load details, management tools and customised alerts.

Subscribe to or renew your annual DailyGrain membership now! Premium Membership is just $350 +GST per year or enjoy our Basic Membership which is FREE for CBH shareholders.

12 months!  for$350+GST For more information, visit dailygrain.com.au or phone (08) 9416 6244.

grow your business ad 12.7x38cm.indd 1

29/01/2015 MARCH 2016

1:53:28 PM

010 | CBH GROUP

Community In 2015, CBH invested $1.6 million into our rural communities. This year, we are excited to announce a number of new partnerships that will provide even more benefits to those living and working throughout rural Western Australia.

Clontarf Foundation Our new partnership with the Clontarf Foundation will help improve the education and vocational opportunities for young Aboriginal men from WA’s grain growing communities.

CBH will provide support to six Western Australian Clontarf Academies and approximately 450 young indigenous students based in Geraldton, Katanning, Albany, Esperance, Kwinana and Northam.

The partnership will specifically focus on providing six scholarships to young indigenous men to participate in the Clontarf program.

To find out more about the Clontarf Foundation, visit www.clontarf.org.au

Mental wellness workshops coming to Geraldton As part of its three year partnership with Black Dog Institute, CBH will be supporting mental wellness workshops in Geraldton this May. The workshops are available for grain growers and community members, along with sessions designed specifically for GPs and Health Professionals. The workshops aim to help enable participants to identify and respond to mental health issues in the workplace, as well as provide strategies to reduce the impact of mental illness.

For more details or to register contact Farhana Laffernis, Black Dog Institute, phone (02) 9382 9515 or email f.laffernis@blackdog.org.au

Year 12 students from the Geraldton Clontarf Academy with CBH Zone Manager, Duncan Gray and CBH Business Relationship Manager, Leith Teakle.

MARCH 2016

CBH GROUP | 011

HMMS fund recipients announced The recipients of funding from the 2015–16 Harvest Mass Management Scheme have been announced and include Ronald McDonald House, St John Ambulance, Camp Kulin, Breast Care WA, Red Cross, Paraplegic Benefit Fund and Farm Safe.

The Harvest Mass Management Scheme was developed by CBH, in conjunction with Main Roads Western Australia, to allow trucks that are loaded above their legal tolerance limits to forfeit their overloaded tonne. Forfeited grain is then sold and the proceeds donated to charities working in regional WA.

Over the past five years, the HMMS fund has delivered a total of $622,336 to charity groups assisting those in regional WA. This year’s recipients were nominated by CBH growers and employees.

Collectively, this year’s HMMS recipients will receive a total of $145,000 raised from the 495 tonnes of grain forfeited during the 2015–16 harvest.

CBH Deputy Chairman, Vern Dempster presenting last year’s HMMS cheque to representatives from Camp Kulin.

Grain grower, Lindsay Tuckwell from Kondinin, nominated Breast Care WA after having personally experienced the support they provide to breast cancer patients.

“

I completed my treatment for breast cancer last July and I am keeping my fingers crossed there is no re-occurrence.

It is fantastic to hear that some of the money raised from the HMMS will be used to fund Breast Care WA. The breast care nurses are an invaluable part of the breast cancer journey. When I was diagnosed I was contacted by a Breast Care WA nurse and she offered me lots of support. This support is particularly crucial when you live away from the metro area.

“When I found out I had cancer I never thought, “why me?” I immediately thought, “well that adds another chapter to my journey through life.”

To know that a Breast Care WA nurse is just at the end of the phone helps to make the travel less stressful.

A diagnosis of cancer is something most people fear and to know that the HMMS funds are being used in this way will surely ease the angst of grain growers when they have to forfeit grain.

”

MARCH 2016

Leeuwin Ocean Adventure Foundation

Year One’s

get geared up for school For the second year in a row, CBH, through a rebate from its stationery supplier, was able to provide stationery packs to Year One students in grain growing schools.

Fifty four schools in regional WA received a total of 1,008 stationery packs for their Year One students commencing school in 2016.

CBH will be offering the stationery packs again in 2017, with registrations opening in November.

CBH has climbed aboard the Leeuwin Ocean Adventure Foundation in 2016 to offer six scholarships to young Western Australians aged 14–25.

Four of the scholarships will be awarded to a local in each of the major four WA grain growing zones of Albany, Esperance, Geraldton and Kwinana, with the remaining two scholarships pegged for youth from the City of Kwinana.

More than 50 per cent of the Leeuwin’s trainees came from regional and remote areas in Western Australia over the past three years.

The scholarships will provide the opportunity for young Western Australian’s to take part in a seven day sail aboard the STS Leeuwin II to develop key life skills including self-esteem, self-confidence, team building and leadership skills.

Visit www.sailleeuwin.com/content/scholarships for more information.

Year One’s from Gairdner Primary School with their new CBH school packs.

GRASS ROOTS FUND open in May

The next round of CBH’s Grass Roots Fund will be open in May. So, if you have an event or project that contributes to the health and vitality of your community, be sure to apply.

Funds of up to $5,000 per event or project are available.

Visit www.cbh.com.au for more details.

Please submit your story ideas to: The Editor Corporate Affairs, CBH Group 30 Delhi Street, West Perth WA 6005

T (08) 9416 6212 F (08) 9322 3942 E nicole.penter@cbh.com.au

cbh.com.au

Disclaimer: Articles submitted, information provided and views expressed in this publication are those of the contributing authors and not those of the publishers. No representation is given, assurance made or responsibility taken as to the accuracy, completeness, appropriateness or validity of any information contained in this publication and neither the publishers nor their offices and employees will be liable on any account whatsoever (including negligence, defamation or otherwise for any loss or damage arising as a result of the inclusion of or any reliance on any such information — except in so far as any liability cannot be excluded by law) and both contributors and readers must make and rely wholly on their own enquiries and judgements.