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