NEWS FROM YOUR CO-OPERATIVE
PICKof THE CROP
WINTER 2016 ISSUE | FORTY THREE
>> IN THIS ISSUE
3 Introducing the 2016 CBH Grower Study Tour Participants!
4 From the Chairman - an update on CBH’s structure review
5 Value of your CBH membership
7 Grower Profile – Jesse Martin
8 Community Corner
Your network of the future CBH recently unveiled plans for your network of the future, which will see investment focussed into 100 sites, with a $750 million spend over five years. CBH General Manager Operations, David Capper said the 100 sites that will form the core of the future CBH storage and handling network currently receive 90% of the annual average crop. “The remaining 102 sites will be consolidated over time,” Mr Capper said. “Most sites won’t close immediately, but no major maintenance will be invested in them going forward. These sites will be used as required until they reach the end of their useful life, and may be used for emergency or surge storage as the seasons require.
“The focus of the strategy ensures that fees remain competitive and sites are efficient. “We’ve been consulting directly with growers on this matter over the last few months and the feedback we’ve received to date shows 77% support for this network strategy as is, with some of the remaining respondents concerned that change is not happening fast enough. This is a strong indication that we are making the right change for growers. “We’ll continue to consult with growers, local government and industry on the network strategy as it unfolds.”
What benefits can growers expect to see once the network strategy is implemented? • A saving of $535 million in maintenance over 20 years. • A saving of $14 million per year in operating and freight costs. • A target of $29 per tonne or less for storage and handling fees, after rebates, by 2018. • A 16-20% increase in throughput capacity helping to improve turnaround times at sites. • 2.2 million tonnes per month to port to meet customer export demand, at the right time. To find out how your local site will be affected, visit www.cbh.com.au
02 | CBH GROUP
NEW Warehouse Advance provides cash flow for your delivered grain
Looking to make contributions to super?
The CBH Group recently launched a NEW finance product, Warehouse Advance; a pre-payment for 2015-16 season grain warehoused in the CBH receival system.
WA grain growers and their spouses can now join CBH Super and other family members may also be eligible for membership. CBH Super is a not-for-profit fund that returns profits directly back to its members. The Western Australian based fund has been providing retirement benefits since 1945 and offers competitive fees and performance. With a 5 and 10 year average annual crediting rate in the Managed Option of 8.58% and 9.14% respectively, there are some great reasons to join CBH Super. The fund also offers three insurance options including death, total and permanent disablement and salary continuance cover to suit individual needs.
Warehouse Advance provides growers with easy and convenient cash flow for their warehoused grain, meaning growers can extend the sale of their grain over a greater period of time while still accessing cash flow. With Warehouse Advance, growers have until 30 September 2016 to nominate their warehoused grain against any available CBH pool or cash products. Warehouse Advance has a competitive interest rate of 4.8% and varying advance rates depending on the type of commodity and grade. The advance rates for each commodity can be found on the product page of our website.
Fund representatives regularly visit CBH locations around WA and are available to discuss your super.
Upon contract approval and acceptance, grower’s funds are automatically drawn down and made available to use within 5 business days.
Joining the fund is easy. Contact Danielle Purdye on 9416 6235 or email danielle.purdye@cbh.com.au for your copy of CBH Super’s grower’s pack. Inside you’ll find all the information you need to join the fund. You can also find out more about CBH Super at www.cbhsuper.com.au
There is no application form required. Simply contact your Business Relationship Manager or the Grower Service Centre on 1800 199 083 to express your interest in this product. For more information, visit www.cbh.com.au
Issued by CBH Superannuation Holdings Pty Ltd ABN: 99 008 684 268 RSE Licence: L0001625 as Trustee of CBH Superannuation Fund ABN: 84 433 159 328 RSE Registration No: R1005165 This information does not take into account your own situation so you should consider this before you decide to buy this product. You should also consider the information in the PDS. Past performance mayN ot be an indication of future performance.
Access mobile LoadNet on your tablet and computer LoadNet will soon give you the ability to switch between the mobile and full LoadNet versions on your tablet and computer. This change means that you now have access to all the functionality of LoadNet mobile on your desktop or tablet, including the opening and closing times of your local CBH receival sites. There are two simple ways to switch between the two versions:
1
Go to the Login page of LoadNet. To switch between versions, navigate in the footer to switch views and choose the version to login to, before entering your PAN and password. Login to LoadNet
CO-OPERATIVE BULK HANDLING LTD Grower Service Centre 1800 199 083
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@2015 CBH Group
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For further assistance, contact the Grower Service Centre on 1800 199 083. WINTER 2016
Mobile Version
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2
If you are already logged in to LoadNet, you can easily switch versions by navigating in the footer to switch the view.
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CBH GROUP | 03
Introducing the 2016 CBH Grower Study Tour Participants! The 25 growers attending this year’s study tour have been selected and trip preparations are well underway. The expressions of interests for this year’s tour were of a very high calibre and we thank all growers who submitted their interest to attend. The eight day trip will allow growers to meet with our customers and visit various flour mills, feed mills, breweries, local markets and ports. This year’s tour participants are:
FRANZ FUCHSBICHLER
LEWIS JOHNSTONE
IAN DOLTON Farm Location Bruce Rock
Farm Location Bruce Rock
Farm Location Williams
GREG EVANS
PHILIP MARTIN
JAMES YEWERS
JOHN GROVE
Farm Location Corrigin
Farm Location Gunyidi
Farm Location Mingenew/Morawa
Farm Location Yuna
LYNNETTE BASSETT Farm Location Brookton
DAVID LEAKE
RICHARD FIELD
Farm Location Kellerberrin
Farm Location Yerecoin
BEN HYDE Farm Location Varley
JASON VERMEERSCH
MICHELLE BARRETT
MICHAEL MCDONALD
Farm Location North East Cascade
Farm Location Munglinup
Farm Location Neridup
PETER REID
NICK DUANE
MIKE KALAJZIC
SIMON STEAD
STEPHEN JAMES
Farm Location Boyup Brook
Farm Location Yandanooka, Mingenew
Farm Location Cadoux
Farm Location Esperance - Cascades
Farm Location Hyden/Kalgarin
DAVID CAMPBELL Farm Location Scaddan/MunglinupCascades
JOYLEEN ANGWIN Farm Location Shires of Wagin and Dumbleyung (Dongolocking)
ROYCE TAYLOR Farm Location South Lake Grace
SCOTT WANDEL Farm Location Esperance
STEPHANIE BLIGH-LEE Farm Location Mingenew
TONY YORK Farm Location Tammin
WINTER 2016
04 | CBH GROUP
CBH Chairman, Wally Newman
From the Chairman an update on CBH’s structure review Throughout March and April of this year, CBH interacted with nearly 900 growers at our round of meetings and then followed up with an additional 1,000 grower member survey to understand your support for the co-operative and if you supported a review of CBH’s structure and governance.
The Board, management and industry experts will be exploring structure and governance options over the next few months with the aim of providing you with a comprehensive look at the options from the current non-distributing co-operative right through to a full listed corporate model.
The feedback showed 71% of growers indicated support for the co-operative model and 89% of growers supported the Board decision to undertake a review of structure and governance.
• how value can be returned to growers through different mechanisms such as shares, dividends and rebates;
Growers have always played an integral part in the evolution of the CBH structure to ensure it delivers the best outcomes for WA growers.
WINTER 2016
This will include: • information on different co-operative and corporate structures; • enhancements to the current structure;
• future grower ownership and control; how the business is governed; and • strategy and ensuring the structure of the business is sustainable.
The review will provide you with additional information when making decisions on the most appropriate structure and governance model for CBH going forward.
“Growers will receive this information in a booklet in September and there will be plenty of opportunity to learn more and engage in discussion with your local Directors during pre-harvest grower meetings.” CBH will then be asking what options you want explored more thoroughly. CBH has a long and proud history built by generations of Western Australian farmers. Your Board is determined to provide you with expert information required for you to decide how CBH is structured and governed into the future.
CBH GROUP | 05
Value of your CBH membership As we consider what form and shape CBH may take in the future,
many growers have asked what their current membership of CBH actually provides and how it returns value to growers. Your membership adds an average of $21 per tonne a year to your balance sheet, depending on your location. Here is how some of that value is realised: • Ownership of Australia’s most cost-effective grain supply chain, with total assets with an insurance replacement value of $5 billion • No monthly storage fees until October • In-house engineering capabilities to service capital and maintenance requirements of the network
• Below market storage and handling fees
• Ownership of a $175 million rail fleet dedicated to the most
• Grower rebates
efficient transfer of grain from
• Below market freight rates
upcountry receival sites to port
• Quality Optimisation
• Reduced freight cost, even with
• Access to LoadNet
increasing track rates
• Harvest Mass Management Scheme
STORAGE & HANDLING
• CBH Fertiliser
ON FARM • A direct link to more than 30 countries and
TRANSPORT
value earned from CBH membership
250 customers worldwide • A competitive advantage to deliver into the world’s biggest emerging grain markets in South
CUSTOMER
East Asia
$21/t
• Ownership of Australia’s largest exporter of grain, which consistently accumulates more than 50 percent of the total Western Australian grain crop • Free basic membership to DailyGrain, the leading price discovery and management
MARKETING & TRADING
service in Western Australia • Pre-payment options at competitive rates • Grower rebates
PROCESSING • Joint ownership of ten flour mills located throughout Indonesia, Malaysia, Vietnam and Turkey, with annual milling capacity of more than 1.5 million tonnes • Ownership of Blue Lake Milling, a leading manufacturer
SHIPPING • Ownership of four state-of-the-art, world class port terminal facilities, responsible for exporting the majority of the state’s crop each year • Joint ownership of Australian Bulk Stevedoring,
of premium Australian oat products operating in South
which provides stevedoring services to all exporters
Australia and Victoria, with annual milling capacity of
at all Western Australian grain ports
60,000 tonnes • Grower rebates
WINTER 2016
06 | CBH GROUP
CBH will introduce new storage and handling services to marketers this harvest.
Changes to storage and handling services for 2016-17 This year we will be making some changes to our storage and handling services offered to growers and marketers. David Capper, CBH General Manager of Operations notes that the services include the retention of our existing integrated services, the introduction of a new ‘site select’ service in which marketers will be able to buy grain from growers and receive entitlement at site, and a series of direct to ‘vessel’ services.
“The proposed changes are aimed at providing more options and flexibility in using CBH’s supply chain,” Mr Capper said. “The new services will allow growers and marketers to co-ordinate deliveries of grain directly to vessels demonstrating a genuine supply chain saving which can then be passed onto growers and marketers through these services. “I’m pleased to say that we’ll be holding all fees flat for the 2016-17 harvest so there will be no increases to charges. We have been able to do this through an ongoing focus on reducing costs and savings generated through the introduction of the Network Strategy. “We look forward to being able to share more information in the lead up to harvest and we will continue to look at ways our supply chain can provide more efficiency with potential cost savings being passed back to growers.
WINTER 2016
CBH GROUP | 07
Jesse Martin with his newly restored 1906 Sunshine harvester.
Early receivals in Williams.
Growerprofile In this edition, we profile 86 year old Jesse Martin from Williams, whose family has farmed in the area for more than 100 years. Jesse is the fourth of what is now five generations of Jesse Martins and carted grain to CBH’s Williams bin for 62 years. When he’s not been farming or driving the truck to CBH, Jesse has worked on his other passion – the Jesse Martin Museum – a historical village that he’s built from scratch and which includes a replica of the Williams Inn, a general store, a movie theatre, petrol stop and several other buildings. We thank Jesse for taking the time to share some of his memories with us. My Great Grandfather was the first Jesse Martin in the family. He migrated to WA in 1869 with his wife Martha and their four children. My Great Grandfather settled in Kelmscott when my Grandfather – Jesse Martin II – was only ten years old. My Grandfather moved to Williams in 1880 and bought himself 300 acres when he was 20, cutting sandalwood and carting it to Perth. Around 1894, the three Martin brothers – Jesse, George and Tom - went to the Goldfields up to Bardoc, where they were involved with the Excelsior mine. My Grandfather took his wagon and was carting supplies for the miners. He returned to Williams and started farming in earnest in 1898. He married Hannah Potts in 1899 and had three children – Dad (born 1900), Jesse III (born 1903) and Alicia (born 1904). My Grandfather died in 1931 after growing the farm to 5,300 acres in two blocks. I was born in 1930, during the Great Depression. These years were very hard for Dad, with probate and very little income, and I remember men tramping the roads looking
for work. Our neighbour’s farm was taken over just for the debt it carried. Williams was a sheep area and was very backward compared to the wheatbelt areas, as far as grain was concerned. Chaff was the big thing in this area and we were cutting 300-400 tonnes right up to 1948, when we switched to grain. Although we had the first tractor in the district, horses did all the work during the depression and WWII, when fuel was rationed, so we were running teams until 1948.
“I started farming in my own right in 1960, at the age of 30, when Dad let me and my first wife loose on a farm of our own.” In 1975, I started building what is now known as the Jesse Martin Museum. It all began when my first wife left and my son died six days later in a car accident – he was only 18 at the time. I got a bit of money from his estate and I wanted to do something meaningful with it, so I built the replica of the Williams Inn and purchased a Titan tractor, which is now 103 years old. It has ended up
an ongoing project for the last 40 odd years. My latest project has been restoring an old 1906 Sunshine harvester, which was the first harvester with a box on it. It keeps me busy and keeps me going and it definitely helped me get through that difficult time in my life. I remember when CBH first came to Williams in 1953. They built two silos that filled up in the first three days. We were one of the last places to get CBH bins and there were many who said we’d never get any grain around here, but we’ve certainly proved them wrong! Farming’s changed a lot over the years. It used to be that you didn’t have to grow a lot to make money and you could still operate using the little trucks. These days it’s big machinery and big farms and big investment, only it’s a lot harder to make a buck out of it. I’ve been retired now for 21 years. I’m a strong believer in handing control over to the next generation, so my son’s been running the farm since the mid-90s but I was still driving the truck into CBH up until two years ago when the eyesight started to give way. The most significant change for our industry over the years has been the introduction of bulk handling. It made life so much easier and meant you could grow more, deliver more and deliver it all more quickly.
“CBH is a wonderful company and does things well as it is. Customers know what they’re getting and growers are the key focus, as they are the ones in control. “ In terms of a secret to running a successful farm business for all those years, there’s no real great secret; you just have to make sure you’ve got enough stuff to truck out the gate each harvest – it’s that simple really. WINTER 2016
Community Corner Grass Roots Infrastructure Round delivers $150,000 to rural communities
Celebrating 10 years with Tennis West CBH recently celebrated 10 years of partnership with Tennis West by hosting the annual CBH Group Country Tennis Tour which, this year, took in visits to clubs in Esperance, Ravensthorpe, Lake King, Newdegate, Tarin Rock, Kukerin and Dumbleyung.
The CBH Group’s Grass Roots Fund Infrastructure Round recently delivered $150,000 to 26 projects across the state.
Over 100 children and 150 adults took part in the tour program.
The fund aims to provide financial assistance to grain growing communities to conduct small scale infrastructure and repair projects which contribute to the health and vitality of their community.
In addition, the CBH Group Country Tennis Championships were held during April, with 248 players from grain growing communities competing in the event. Well done to all those who participated.
Some of the successful applicants included: • Cranbrook Primary School for a kitchen garden • Ravensthorpe Historical Society for concreting a shed floor
Members of the Esperance SouthCoast Tennis Club recently took part in the CBH Group Country Tennis Tour.
• Riding for the Disabled Midwest Centre Repairs for a shade sail • Kellerberrin Hockey Club for additional lighting
YOUR CROP ESTIMATE COULD TAKE YOU TO BROOME
CBH GROUP HARVEST CASUAL WORK 2016 Applications now open at careers.cbh.com.au Positions available include:
• Receival Point Operators (Plant Operators at Port Terminals)
• Grain Samplers (including weighbridge duties)
The CBH Group is looking for enthusiastic people to work at our receival points across the grain growing region of Western Australia. Casual work is available for the harvest period commencing from October. Training will be provided before you commence work so you are not required to have any prior qualifications or experience. Find out more about the CBH Group on our website, or to apply visit careers.cbh.com.au
Log into LoadNet and complete your crop estimate before Friday, 29 July 2016.
APPLICATIONS CLOSE 31 JULY, 2016
Please submit your story ideas to: The Editor Corporate Affairs, CBH Group 30 Delhi Street, West Perth WA 6005
T (08) 9237 9580 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.