Tuesday 27 October 2009
The launch today of a new grain marketing company will see southern NSW farmers take greater control of their grain marketing and benefit from the collaboration of risk management and grain marketing expertise with local knowledge and understanding.
The new company, Southern Ag Grain, is a joint venture between one of Australia's leading grain marketers, Emerald Group Australia Pty Ltd (Emerald) and local NSW grower group,Southern Agventure Ltd (Southern Agventure).
Emerald's Chairman, Alan Winney, said that Southern Ag Grain was the culmination of over a year of discussions between Southern Agventure and Emerald and reflected the strong desire of local producers to participate in and benefit from the significant changes taking place in the grains industry.
"Emerald is very pleased to be able to announce, in conjunction with Southern Agventure, the establishment of a grain marketing company focused squarely on the needs of producers in southern NSW", said Mr Winney
"At Emerald's core is our absolute commitment to growers as our customers. We know that by working together, in partnership, we can get the balance right between local understanding, the participation of grower shareholders post the farm gate and the corporate disciplines, risk management systems, resources and scale that a group like Emerald brings to the table." said Mr Winney.
Southern Agventure Chairman Dick Thompson said, "Southern Agventure is the result of over four years of dedication by a committed group of local farmers who are determined to achieve a greater degree of control and empowerment for the local farming community.
Southern Ag Grain is the first important, visible and tangible step in the development of a commercial growers' organisation focused totally on the outcomes for local producers. We know the markets around us are changing and by being a part of it, this is an opportunity for farmers to really participate in, and benefit from, that change."
"Southern Agventure seeks to build partnerships that add value to our growers. We searched extensively for the right partner for grain marketing and Emerald is clearly a great fit for us.
We wanted a partner that had the capacity to help us grow the venture in a controlled and secure way while also understanding farmers." said Mr Thompson.
Mr Winney added, "Southern Agventure should be congratulated for their drive and determination in forming Southern Agventure to benefit their community.
The partnership model has been highly successful in other regions in which we have a strong presence. Emerald has formed key alliances with grower organisations in a number of regions throughout Australia.
Our partnership in the Eyre Peninsula region of South Australia saw our joint venture with grower organisation FREE Eyre Ltd, achieve a 15 per cent market share in its first year of operation."
"And our partnership in Victoria's Western Districts and Wimmera regions with the grower cooperative, Southern Quality Produce, is continuing to perform extremely well, despite some a highly competitive market and very tough growing conditions over the last few years.
That business is approaching 10 per cent market share of total Victorian production and is the market leader in the western districts. In Western Australia, our strong links to the farmers association WAFarmers and Ravensdown United Farmers Cooperative, has seen us become the third largest accumulator in the state," said Mr Winney.
"We believe the model works well but most importantly, our customers are confirming this. We will continue to build alliances and partnerships with local grower organisations to ensure we continue to improve returns for our customers."
Southern Ag Grain will commence operations on 2 November 2009, and will be accepting grain for this season's harvest. Southern Agventure should be congratulated for their determination and drive over the last four years to reach where we are today.
Mr Simon Wishart has been appointed to the role of Grains Manager. Mr Wishart, a NSW local, has had extensive experience in the grain industry and is well known to many producers in the region as a buyer for Weston Milling & Animal Nutrition and as the Manager of the Albury mill.
He commences with Southern Ag Grain at the beginning of November. Other key appointments will be announced in due course.
For further information on Emerald's prices, pool returns or distributions call 1300 880 432 or visit www.emerald-group.com.au