Australian Grains Champion is formally withdrawing its Proposal to commercialise CBH.
It was a good Proposal, was properly funded, and it could have provided substantial benefits to Western Australian growers.
Unfortunately the CBH board denied growers the ability to view the Australian Grains Champion in full and a chance to exercise their right to vote on a proposal that could have injected $2.56 billion* onto farm balance sheets and into the WA rural economy.
Australian Grains Champion Grower Director Brad Jones said the Australian Grains Champion Proposal had already achieved a number of benefits for WA grain growers.
“Australian Grains Champion was able to attract an initial $600 million of potential investment into Western Australian agriculture, a $600 million injection into rural Western Australia that could have occurred almost immediately if WA grain growers had been able to vote for our Proposal,” he said.
“We have saved growers $400 million in network rationalization charges by forcing CBH to reduce its planned gold plating of the storage and handling network from a proposed $1.15 billion to $750 million, and we have forced CBH to review its structure and governance.”
The feedback from most growers has been that while the CBH structural review process is underway, they want that process to reach its natural conclusion and that they are focused on the coming harvest. As a grower-led movement Australian Grains Champion respects that feedback.
“If CBH fails to meet growers’ expectations, and there is a groundswell of growers prepared to fight for change, Australian Grains Champion may review its current position,” Mr Jones said.
*$2.56 billion is an independent valuation of CBH conducted by Patersons Securities released on 19 July 2016.
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The Australian Grains Champion Proposal changes the structure of CBH from a co-operative to a company listed on the Australian Securities Exchange.
Australian Grains Champion and its vision for CBH have been developed by WA grain growers and leading professional advisers to:
Australian Grains Champion includes growers and leading professionals seeking to build on CBH’s proud history, to develop and drive change for an efficient and commercially-focussed business which can respond to the new competition in the WA grains industry.
The current Australian Grains Champion Board comprises grower directors Clancy Michael, Sue Middleton and Brad Jones, strategy director Samantha Tough and finance director John Corbett.