World Grain - April 2009 - 28

WORLD GRAIN INTERVIEW: IMRE MENCSHELYI

the business to grow it. My view is that
the structure needs to be altered to return the value to the grower when we're
profitable. The only way they can benefit now is through the provision of additional service.

Storage cells at CBH's Metro Grain Center in Perth, Australia. Photos courtesy of CBH.

growers in the Co-operative by way of
returning equity for value. I leave that
challenge for my successor.
WG: What advice would you offer to
your successor, Dr. Andy Crane, on this
issue?
Mencshelyi: We need a formula or

structure to enable us to return value to
the owners of the business. At the moment, CBH is owned by close to 5,000
growers, each with two-dollar shares
in the company. It's a non-trading cooperative so we can't return dividends
or rebates to owners under the present
structure. All the profits are retained in

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WG: Australia deregulated its wheat
export industry last summer in time for
the 2008-09 harvest, which looks like it
will yield about 20 million tonnes. More
than 23 accredited exporters, including CBH subsidiary Grain Pool, have
replaced the former Australian Wheat
Board. By all accounts, CBH has been
one of the big winners from the process.
Can you explain how you prepared the
company for this momentous change?
Mencshelyi: The industry anticipated
that one day the wheat single desk would
be abolished. From a CBH perspective,
we'd been preparing for this event. You
need systems and processes in place and
we worked very hard in our planning
and we were ready to assist the growers in the transition process. Our merger
with Grain Pool back in 2002 gave us a
taste for marketing and trading in nonwheat grains so we were well positioned
for competition as a consequence of
wheat deregulation.
WG: You introduced Grain Express in
Western Australia to coincide with deregulation. How does this system work
exactly?
Mencshelyi: It's one of the most innovative changes we've had in storage,
handling and transport since we moved
from bag to bulk. Grain Express assists
growers in Western Australia by coordinating and managing the grain supply
chain. This is different and separate from
our marketing operation. It basically coordinates the logistics. This could have
been chaotic post-deregulation if every
marketing company was doing its own
logistics. Grain Express streamlines the
receival process, offers all growers full
marketing options and improves transport utilization. All parts of the supply
chain benefit. It brings together rural and
international players in a way which is

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World Grain - April 2009

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