AUSTRALIAN CANOLA What do customers want? 10 March 2014 Don Campbell – Head of Trading CBH Group

AUSTRALIAN CANOLA What customers want from Australian canola

•  Security of supply •  Quality

THE RIGHT TONNES

•  Integrated supply chain •  Geographical spread

THE RIGHT PLACE

•  Sales program •  Pricing

THE RIGHT TIME

SECURITY OF SUPPLY Australian production trending higher

1.0  

1.5  

2.0  

2.5  

3.0  

3.5  

4.0  

4.5  

2009/10   2010/11   2011/12   2012/13   2013/14  

Millions  

Canola Production

Source: ACF Source: ACF

SECURITY OF SUPPLY Australian bulk canola exports - 2012/13

Source: ACF Source: ACF

SECURITY OF SUPPLY Australian bulk canola exports - 2013/14 (YTD)

7%  

52%  

8%  

19%  

5%  

10%  

Bulk  Export  Market  Share  

Cargill    

CBH  

Emerald  

Glencore  

Graincorp  

Toepfer  

Source: ACF Source: ACF

THE RIGHT QUALITY Geographical spread to manage risk of seasonal variance

Source: CBH, Viterra, GNC

40   42   44   46  

Port Adelaide

Port Lincoln

Geraldton

Kwinana

Albany

Esperance

Portland

Geelong

Melbourne

Kembla

Newcastle

Oil Quality

INTEGRATED SUPPLY CHAIN Focus on quality validation and control

THE RIGHT PLACE Multiple load port options to balance risks

THE RIGHT PLACE Geographical spread - canola exports by State

0.0  

0.5  

1.0  

1.5  

2.0  

NSW   VIC   SA   WA  

Millions  

2012/13  Bulk  Exports  

Source: ACF

0.0  

0.5  

1.0  

1.5  

2.0  

NSW   VIC   SA   WA  

Millions  

2013/14  Bulk  Exports  YTD  

Source: ACF

THE RIGHT PLACE Do suppliers have a Plan B?

THE RIGHT TIME An concentrated sales program

•  Customers require different pricing methods, need to have flexibility to meet customer needs. –  Flat price and/or basis differential –  Futures execution (inc. EFP) –  Foreign exchange orders –  Customer order management

THE RIGHT TIME Customer specific pricing mechanisms

CBH GROUP

OUR CUSTOMERS OUR GROWERS

MARKETING & TRADING

STORAGE & HANDLING

SHIPPING

PROCESSING

Our business

Flour millers, Maltsters

Feed manufacturers

Oilseed crushers

Food processors

6 flour mills: Vietnam, Indonesia, Malaysia

> 1 million tonne demand

70% from Australia

Load 10 million tonnes per year

Stevedoring

Charter > 4 million tonnes

4500 members

10-14 million tonnes production

Largest Co-op in Australia

197 sites

4 ports

20 million tonnes storage capacity

Trade > 8 million tonnes Offices in HK, Japan, USA Export to Asia, Middle East, Europe Largest bulk exporter from Australia