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November 4, 2011

 

CBH decreases fees at 60 sites

 

 

CBH Group will implement a 10% reduction in receival fees at nearly 60 smaller sites (Tier 2 sites), helping to boost returns to the growers in a year when grain prices have fallen.

 

CBH General Manager, Operations, Colin Tutt said the grower cooperative would charge the same receival fee across all sites for the grain harvest now underway in Western Australia.

 

The additional cost for delivering to Tier 2 sites had been removed saving growers who deliver to those sites AUD1.10 (US$1.14) or AUD1.15 (US$ 1.19) per tonne.

 

Tutt said the receival fee across the CBH network would now be AUD10.50 (US$10.9) per tonne for wheat and lupins, AUD11.75 (US$12.2) for barley and oats, AUD13.70 (US$14.2) for field peas, chick peas and fava beans, and AUD16.70 (US$17.3) for canola.

 

"This will be a high volume year for the CBH storage and handling network with an estimated harvest of more than 12.5 million tonnes, the second biggest on record," Tutt said. "We need to make best use of our capacity and we don't want growers to be discouraged from delivering to their nearest site because it costs more than one further away.

 

"Growers in recent times have supported CBH well in low production years when not all sites are open and the Tier 2 pricing arrangements now are not required to challenge directional flows of grain. Further many smaller sites today are handling specific segregations such as canola which is easing congestion at Primary sites.

 

"Removing the surcharge at Tier 2 sites will also be of value to growers this year when prices are significantly lower than last year. The rain which has delayed the harvest in some areas to date may also cause some issues with grain quality and result in possible downgrading of grain so we are pleased to do something that will assist our grower members offset some of that revenue reduction."

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