31/01/2011 - 14:59

CBH says it will remain a co-operative

31/01/2011 - 14:59

Bookmark

Save articles for future reference.

CBH Group will remain owned and controlled by local grain growers, after it announced it would remain a co-operative following a review of its operating models and business structures.

CBH says it will remain a co-operative

CBH Group will remain owned and controlled by local grain growers, after it announced it would remain a co-operative following a review of its operating models and business structures.

CBH Group chairman Neil Wandel said the 'Enhanced CBH' co-operative structure would provide the best outcome for Western Australian A growers by retaining the most valuable aspects of the existing structure, while also allowing for future improvements.

Enhanced CBH will fall within the technical definition of non-distributing co-operative under the new WA Co-operatives Act, Mr Wandel said.

CBH launched the review of its corporate structures in September last year.

"The enhancements we are exploring under this model include partial refunding of charges to reward growers for their patronage of our storage and handling network, more investment in our storage and handling network and the development and rollout of new products, services and investment instruments that will provide more value to growers and the industry," he said.

"This structure allows us to return value to members in ways that the vast majority have asked from their co-operative. These include keeping storage, handling and freight charges as low as possible and continuous investment in maintaining and upgrading the storage and handling network.

"As a non-distributing co-operative, we will also retain the tax exemption for our storage and handling business - an exemption valued at an estimated $10-15 million in an average year and significantly more in bigger harvest years."

Mr Wandel said the proposed structure would see the introduction of a new and modernised constitution and a transition to the new Western Australian Co-operatives Act, subject to member approval.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options