CBH Fertiliser is expanding
Today, we have announced we will build a new liquid and granular fertiliser storage facility near Kwinana Grain Terminal that will significantly expand our CBH Fertiliser business.
CBH Fertiliser has achieved year-on-year growth of around 30 per cent since it entered the market in 2015 and has reached maximum capacity at its four currently leased facilities.
Building our own fertiliser storage facility will leverage our existing supply chain infrastructure and enables us to increase the scale of our procurement and operations and reduce storage, handling and freight costs, which can be passed on to growers through lower prices.
The use of nitrogen by application of UAN in Western Australia is also growing at a rate of 12 per cent per year with storage capacity currently not keeping pace, leading to shortages in supply at critical times when growers need the product.
The move into UAN for CBH Fertiliser will improve the consistency of supply and allow growers access to UAN when they need it most.
Overall, the new development includes construction of:
- A UAN ship unloading and transfer pipeline, which runs along the existing Kwinana Grain Terminal jetty
- Approximately 55,000 tonnes of granular fertiliser storage in a new warehouse
- 32,000 tonnes of UAN storage in two 16,000 tonne storage tanks, and
- Administration office, landscaping and security
Reducing on-farm costs is critical to the international competitiveness and long-term sustainability of Western Australian grain growers.
With a dedicated fertiliser storage facility in Kwinana, we can achieve a big impact on the fertiliser market and, therefore, a big impact for Western Australian growers.
Watch this video to see the artist impressions.