CBH Group elections a time to steer co-operative’s future direction

Growers – make sure you cast your vote in the upcoming CBH elections by February 14.

The record 20 million tonne-plus WA grain harvest is now safely tucked away into the secure hands of CBH Group.

It is, after all, their role in the receiving, testing, safe storage and the dispatching of WA growers’ grain for more than 80 years.

I am are there are dispatching issues, however with CBH’s four world-class port facilities, what is the problem?

If you read former CBH chair Wally Newman’s recent opinion piece in Countryman, it would have given you some insight into the importance of not only receiving but dispatching grain to important, global customers in a timely manner.

You will be aware CBH elections and candidates have been tabled for your decision.

Essentially, the word director is another word for direction. As a grower co-operative, directors constitute a vital role of determining where you wish your CBH to go for the best future interest of your business and the grains industry as a whole.

It is my observation the three candidates for District 3 are of particularly high calibre and the challenge will be for growers to cast their vote for their prepared candidate.

It goes without saying that a successful co-operative functions best with the support of grower members. Regrettably, history will show that less than half (sometimes as low as 30 per cent) of eligible grower members bother to vote.

In real terms, only half the growers and at many times less, determine the future vision and the retention of co-operative principals.

Many times, reference is made to CBH as an integral part of our grain growing business.

The future success of CBH begs the question of, “can we all do it better?”

My short answer is, as a co-operative we need to and have to make sure the focus, vision, operations and integrity of CBH remains an important function of WA’s grain growing industry.

Here are a few interesting points – keeping in mind that these are my personal observations and opinions.

1. In the late 80s and early 90s, there were more than 15,000 CBH members. In 2022, that number is down to about 3500 members. CBH has a graph of member numbers. According to my “back of the envelope” figures, there has been an attrition of about 11,500 growers during the past three decades. I am one of them, and have never received by $2 cheque.

2. Within a co-operative, your voting rights are equal irrespective of whether you deliver 2000 tonnes or 50,000 tonnes. The issue of weighted voting could arise.

3. Growers should always retain control of CBH receivals, storage and handling, testing and dispatch facilities and infrastructure. Charges and fees for growers could be discounted for tonnages commencing at about 5000 tonnes, with a fee structure representing larger tonnage volumes calculated on a sliding scale downwards.

4. CBH should remain a natural monopoly. As long as it stays in the control of growers, this structure may be the lesser of two evils. Speaking with South Australian growers, their opinion is that WA – as a major exporting State – may find it best to retain the natural monopoly CBH has in the grains space.

5. Notwithstanding this, if a company wishes to create a storage and handling facility in competition, this should be encouraged. The ACCC should be allowed to monitor as to whether it is fair and open competition. Growers, ultimately, will be the judge.

6. To retain CBH as a co-operative, it could be in the group’s best interest to encourage some competition in WA.

7. Road or rail. One train and two men hauling 3000 tonnes, or the equivalent of about 50 road trains carrying 50 tonnes each, with 50 drivers. Let’s not forget the fossil fuel issue, and the issue of carbon emissions per tonne. It is the world we live in, and the future.

Make sure you cast your vote in the CBH elections before February 14.

Ray Marshall, Pingelly