09/07/2009 - 09:37

CBH looks at $15m loyalty payments

09/07/2009 - 09:37

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Grain handler CBH Group says it will pay users of its Grain Pool or CBH Grain marketing systems as a reward for their loyalty, in a program that could deliver around $15 million back to growers.

CBH looks at $15m loyalty payments

Grain handler CBH Group says it will pay users of its Grain Pool or CBH Grain marketing systems as a reward for their loyalty, in a program that could deliver around $15 million back to growers.

 

The announcement is below:

 

In what will be an industry first, Grain Pool has today announced it will deliver a Customer Loyalty Payment to all growers who chose either Grain Pool or CBH Grain to market their grain during the 2008-09 season. The payment will be delivered to eligible growers in September, 2009.

This unique loyalty payment will apply to deliveries of all grains and grades to Grain Pool or CBH Grain in the 2008/09 season, for all tonnes nominated on or before 31 March 2009. The payment applies for both cash sales and pooling options, however, track trades and deliveries to non Grain Pool retail pools will be excluded from the payment, including deliveries into Plum Grove's Harvest Pool.

Neil Wandel, Chairman of Grain Pool and the CBH Group, said the intention is to provide a Customer Loyalty Payment every year to those growers who choose to do business with Grain Pool and CBH Grain.

"The feedback we've been hearing from growers is that they want to sell their grain to a business they trust, one that stands out from its competitors and provides value for loyalty and this payment is simply one of the ways we are responding to meet those needs," he said.

Mr Wandel said as is the case with the payment for the 2008/09 season, any decision to distribute future payments will be based on volumes delivered to Grain Pool and CBH Grain as well as the future financial needs of the business.

Grain Pool General Manager Brian Mumme said although the exact amount would be approved closer to payment in late September, at this stage growers can expect to receive a Customer Loyalty Payment of between $2.50 and $2.95 per tonne.

"Working from this range, the Customer Loyalty Payment will deliver around $15 million in total to those growers who marketed their grain with us last harvest.

"This payment has been made possible only because of the loyalty shown to us by growers. Due to the large volume we received in the 2008-09 harvest we were able to spread our overhead costs across more tonnes, therefore lowering the cost per tonne.

"We already reward growers with strong financial performance, competitive prices and reliability of payments and now we are providing additional value through a Customer Loyalty Payment."

Mr Mumme said eligible growers will receive further details about the payment in September. Growers looking for further information about Grain Pool's Customer Loyalty Payment are encouraged to attend the CBH Group's upcoming Chairman/CEO meetings, the schedule of which can be found on the CBH Group website at www.cbh.com.au.

 

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