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Plum Grove is a grain accumulation and export business operating in all Australian grain markets. Plum Grove operates the cash accumulation services, cash sales program products and grain pools for growers.
It has major operations in Western Australia, South Australia and New South Wales.
In October 2019 Plum Grove announced it had "made the strategic decision to stand aside from participating in Australian grain accumulation until production and pricing stabilises." It is expected that Plum Grove will resume trade once this occurs.
Plum Grove began operating in July 2003 based around founding director Tony Smith’s experiences developing and trading products for Australia’s single desk operator at the time AWB Ltd, and the financial services industry.
At its outset, Plum Grove was based on a vision of bringing both risk management and transparency within the financial services industry to the Australian grains industry. This vision saw the establishment of innovative pools, which were run in conjunction with CBH Group that continue today. In addition Plum Grove key personnel also developed DailyGrain, which is today the most widely used price discovery service in WA. This was spun off into an independently managed business and is now owned by the CBH Group.
In 2010 the Salim Group and Seaboard Corporation became minority shareholders in Plum Grove. They currently hold 25 % each. Both US-based Seaboard Corporation and the Indonesian-headquartered Salim Group offer significant consumptive demand opportunities for Australian grain: Salim is arguably Australia's largest single wheat customer via its controlling ownership in Indonesia's Indofood, owners of Bogasari flour mills. Indofood produces a staggering 12 billion packs of 2 minute noodles per year and has an underlying wheat milling capacity of 15,000mt per day, a significant proportion of which comes from West Australian growers.
Amongst many food and logistics operations Seaboard Corporation has 14 flour mills based throughout the East Coast of Africa, South America and the Caribbean. Seaboard accumulates and trades some 6 million tonnes of grain each year to its flour mills and third parties.
In January 2013 Plum Grove also welcomed Mitsui & Co (Tokyo) as a 25% shareholder in the business. Mitsui is the largest importer of wheat and canola into the Japanese market – one of Western Australia's most consistent long term markets. Mitsui has global grain assets in North and South America, the Black Sea and trades more than 15 million tonnes of grain annually around the world.