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  • By Lynda Kiernan-Stone, Global AgInvesting Media

CBH Group to Close More than 100 Grain Receival Sites

Western Australia’s CBH Group announced it will be reducing its grain network by half, reducing its receival sites from 202 to 100 in stages over the next three, five, and ten year timeframes.

"We need to invest in the other sites to get that improvement in performance, and we want to be able to give growers warning and allow for those who are impacted to transition their plans to delivering to other sites,” said CBH Group CEO, Dr. Andy Crane, reports ABC.

The group will invest no funds into the sites that are scheduled to be phased out, however the remaining sites will be the focus of a $750 million network improvement and restructuring plan.

Under this strategic plan, the group is targeting to increase the speed and efficiency of receivals by 20% during harvest times, while being able to maintain its storage fees levels with 2013 charges. In addition the company is aiming to handle 2.2 million tons of grain per month through its four port terminals, reports The West Australian.

Indeed, the restructuring may extend beyond the groups receival sites. The West Australian reports that Dr. Crane said that within the next six months, the group will present a range of structure options to its growers, from “staying a non-distributing co-operative through to a full public listing,” indicating the possibility of a vote regarding structural changes to the business by next year.

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