CBH AGM: Seesawing harvest deliveries ‘test resolve’ as co-op remains laser-focused on Path to 2033 Strategy

CBH Group leaders will continue to prioritise network upgrades and safety in the face of volatile grain deliveries and a below-target all-injury frequency rate during the 2023-24 financial year. Speaking at the co-operative’s annual general meeting in Perth, CBH Simon Stead told the more than 450 farmers in the room the business was laser-focused on its Path to 2033 strategy launched three years ago. The strategy, launched in 2022 under chief executive Ben Macnamara, aims to turbocharge investment in the network and help the business export up to 3 million tonnes of grain per month by 2033. Mr Stead said fluctuating grain deliveries of up to 50 per cent between the 2022-23 and 2023-24 financial years had “tested the resolve” of the co-operative but were a clear demonstration of the “highs and lows of agriculture”. Mr Stead’s address at the February 21 AGM zoned in on CBH’s 2024 financial year, which ended September 30, and which he said had delivered a solid financial and operational performance. CBH reported an adjusted surplus of $73.8m, despite a smaller harvest in 2023-24. A total 12.5Mt of grain was delivered into the CBH network that financial year, down 45 per cent on the 2022-23 total of 21Mt. The most recent harvest — which wrapped up in January — was CBH’s third-biggest harvest at 20.3Mt. It means CBH’s five-year average is now 18.5Mt. Mr Stead said the most recent harvest was a clear reminder of the “peaks and troughs of farming” and the need to plan for the future. “With this, we can clearly see the highs and lows of agriculture,” he said. “Such volatility will test our resolve. However, we remain resolute in our focus to continue on our Path to 2033 strategy. “It will help buffer us from crop-size variability and will ensure we can capitalise on larger crops when we receive them in the future.” Taking to the podium, Mr Macnamara said the safety of staff and contractors was CBH’s top priority. While the number of serious injuries reported in the 2023-24 financial year fell 17 per cent, its all-injury frequency rate — which measures the number of injuries per a set number of hours worked — was 6.3, above CBH’s target of 5.5. Despite this, CBH’s all-injury frequency rate has trended downwards in recent years from 7.29 in 2021-22. “We are working hard to ensure that fewer people are injured and, if someone is injured, it’s not a life-changing outcome,” Mr McNamara said. “We have seen some pleasing trends downwards in AIFR in our most recent harvest.” CBH launched its Path to 2033 strategy in 2022 with a goal of being capable of exporting a peak of 3 million tonnes a month. In line with this goal, the co-operative invested $500 million in its network in the 2023-24 financial year. This included a record $199m on sustaining capital or replacing and refurbishing infrastructure. Mr Macnamara said CBH had reached the first major milestone of the strategy, Horizon 1, after exporting 2Mt per month five times. “Looking forward, we remain focused on developing our people, upgrading our technology, and strengthening our supply chain,” he said. “This is a great result and a significant step towards being able to outturn a peak of three million tonnes a month by 2033. “We also enabled our marketing and trading division to market about 50 per cent of the State’s crop through long-term shipping agreements.” Mr Macnamara said CBH was readying for an average 22Mt crop, with peak years of 28Mt by 2033. Mr Stead also paid tribute to CBH chief stakeholder relations Brianna Peake, who will step down after 14 years in March to take on a US-based role as WA’s Investment and Trade Commissioner for the Americas.