Food & Agribusiness Talking Points 18-01-2016

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CBH posts profit despite trading loss

CBH posted a profit of $82.7 million AUD despite incurring a loss of $16.7m AUD in its marketing and trading operations. Chairman Wally Newman noted the board’s investment of $177.4m AUD in capital expenditure and maintenance of the network, as well as the launch of CBH Fertiliser and the acquisition of Blue Lake Milling proved beneficial for the company. Investment has seen a record 1 million tonnes delivered to the Chadwick site in the Esperance Zone, which can be attributed to the development into the port facilities. Click here for article.

Australian wheat exports could hit record lows

On the back of low oil prices, Australia’s wheat export hinterland of Asia has been opened up from traders from far flung regions. France exported wheat to Indonesia in November, the first time on that route since 2008-2009, where growing competition to Australian producers is a cause for concern. Furthermore, Australia remains uncompetitve, its biggest competitors in the USA, Canada, Argentina and the Ukraine can all produce at $10 AUD per tonne cheaper than Australia and with better rainfall, soil means better yield. Right now the low Aussie dollar is providing some relief. Click here for article.

New Chinese farm training centres in Zimbabwe

A Chinese company has signed a deal with the Zimbabwean government to build up to eight new agricultural demonstration centres in which to train local farmers and share farming expertise. Debont Co. signed to deal, where it will partner with local agricultural colleges, provide capital, machinery, lab apparatus and farming expertise. There are such demonstration centres already in other African countries including Cameroon, Ethiopia, and Mozambique amongst others. Click here for article.

WA farmers reject Brookfield’s $9b Asciano takeover

Western Australian farmers have rejected moves for Brookfield Infrastructures $9 billion plan to acquire the ports and rail group Asciano. The Australian Competition and Consumer Commission has taken public comment on the potential bid, Dale Park the president of WA Farmers Federation reiterates “Our original position still stands, … We think they should give up the rail.”. CBH Australia’s largest grain exporter also plans to make a submission, with Asicano’s Pacific National intermodal freight operations important for the grain infrastructure in Western Australia. Click here for article.