Grain co-operative CBH has no plans to change its structure, despite continued discussions with the Australian Competition and Consumer Commission over the payment structure other grain business say is anti-competitive.
CBH boss Jimmy Wilson, quoted this week by Fairfax, confirmed the grain business is in constant talks with the ACCC over its ‘patronage rebate’ model.
CBH, unburdened by tax due to its co-operative structure, paid growers a record rebate of $156 million in 2017, representing a value of $12.45 per tonne of grain.
Other grain businesses have reportedly complained to the ACCC this structure makes it difficult to compete with CBH.
But the co-operative stood firm against the ACCC, saying it has no plans to move away from the grower-focused structure.
Wilson reportedly said the ACCC is not satisfied with that outcome.
“Well, we have not convinced them [that the system is not anti-competitive], and I think we’ll never convince them of that,” Wilson was quoted as saying. “At the end of the day, there is always an ongoing dialogue with the ACCC on this.