Grain exporter CBH Group says a survey of nearly 1,000 growers has shown “overwhelming support” for the company’s recent decision to reject a bid to list the business on the ASX.
The CBH Group’s board in March rejected a bid to float the business, saying the proposal would “destroy value” for its growers and the network.
The proposal was led by Australian Grains Champion (AGC), which had the support of GrainCorp chief executive Mark Palmquist.
CBH’s board says a survey it conducted following its rejection of the move showed it made the right choice.
Chief executive Andy Crane said the survey showed 78% of grower members supported the board’s decision.
“It’s an important part of our business, as a member owned organisation we must stay close to our growers’ views,” Crane said.
“This was a slightly larger survey than normal and by expanding the survey group we are able to get statistically valid information that gives us 95% confidence that all members have the same views as those shown in the results.”
Crane said the views represented in the survey, which was conducted by market research agency Thinkfield, aligned with those expressed at grower meetings over the last five weeks.
“By doing the formal independent survey we now feel certain we have a very definite view of our growers’ concerns and where we should be heading on the issue,” he said.
When the CBH board rejected the proposal in March, it said it would conduct a review of its own structure and governance. This was supported by 89% of surveyed growers, according to Thinkfield’s figures.
“The board has heard that growers want more information on these critical issues to have their own say on the future of their CBH,” Crane continued.
“They are looking at a range of options and want to make sure that we have the best structure for servicing growers’ needs going forward.
“That may well be the co-operative model that we currently have or there may be changes we can make to better reflect growers’ needs.”