PERTH, AUSTRALIA — The CBH Group sustained a 29% drop in surplus for the 2023 financial year ended Sept. 30 despite a record harvest and intake volume.

The company posted a group surplus of A$353.3 million, which compared with A$498 million in 2022.  

Operations achieved its highest ever surplus of A$156.1 million due to substantially greater volumes received and exported through the network. The cooperative outturned a record 21.9 million tonnes to international and domestic customers.

The outturn program included a record 19.7 million tonnes from port terminals, while road and grower subcontractors moved a record 8.3 million tonnes of grain directly to ports, breaking nine monthly records.

Rail performance significantly improved during the year, with Aurizon helping to move a record 11 million tonnes, breaking 10 monthly rail records for the year in the process.

CBH invested a record A$572.7 million into the network, including entering into three agreements that will significantly bolster the existing rail fleet by 24 locomotives and 650 wagons.

As part of this network investment, good progress was made on 11 rail outloading and siding projects.

During the year, 436,000 tonnes of permanent storage and 2.3 million tonnes of temporary storage was added to the CBH network, while a record A$173.6 million was invested in more than 230 sustaining capital projects that will ensure the longevity and functionality of network assets.

CBH’s Interflour joint venture with Salim Group was impacted by a challenging trading environment as a result of high grain prices. It reported a surplus of A$100,000.

Interflour also experienced two separate third-party incidents at the Vietnam Port, which resulted in physical damage and the shutdown of port operations.

CBH Marketing & Trading (M&T) posted a surplus of A$176.3 million, which was driven by increased export margins early in the year, a second consecutive record harvest in WA and the re-opening of the China barley market.

During the year, M&T bought 43% of the record WA crop and paid A$4.8 billion to WA growers, while shipping 8.9 million tonnes of grain.

Looking ahead, Ben Macnamara, chief executive officer of CBH, said the company is focused on achieving the “Path to 2033” Strategy.

“By 2033, we want to increase how much we export to a peak of 3 million tonnes a month and, critically, be able to outturn 70% of the crop in the first half shipping window to maximize the value of WA growers’ grain,” he said. “We remain focused on the core of our business, our storage and handling network, marketing and trading grain, and providing a secure and consistent supply of fertilizer for WA grain growers.