Emerald Group Australia Pty Ltd (Emerald) has acquired 100 per cent ownership of the Eyre Peninsula’s leading grain marketer, EP Grain.
Emerald bought out grower co-operative FREE Eyre’s (FEL) 50 per cent stake in the business following a four-year partnership that bolstered grain marketing competition in the Eyre Peninsula.
Emerald Chairman and Chief Executive Officer Alan Winney said the purchase of the Port Lincoln-based business was in line with Emerald’s core strategy to build its national accumulation footprint in all of Australia’s key grain growing regions.
“In just four years of operation, EP Grain has returned significant value to its grower investors and has done business with the majority of the region’s farming families.
“Emerald’s increased investment in the EP Grain business represents our confidence in the region and commitment to the Eyre Peninsula’s growers,” Mr Winney said. “We are committed to enhancing the financial returns to growers through innovative products and supply chain solutions.”
“Emerald will continue to manage EP Grain as a local, grower-focussed business. Our merchants will be out in the field speaking to our grower customers to create flexible marketing products specifically designed for the Eyre Peninsula region.”
Mr Winney said the office name, location and management would remain the same.
“Emerald will assume all the existing responsibilities of EP Grain, including ongoing management of any grain pools and cash contracts. EP Grain will continue to offer its grain accumulation throughout the Eyre Peninsula region.
“Existing contracts between growers and EP Grains will remain unchanged.
“All bank finance, IT systems, risk management, grower payments and other services have been traditionally provided by Emerald. This will continue under the 100 per cent ownership structure.”
Mr Winney said Emerald was in a strong financial position and well prepared for the upcoming harvest.
“Emerald has a $685 million banking facility in place for Peninsula growers to leverage against, giving them complete confidence in our grain marketing contracts.
“Through our local people on the ground, Eyre Peninsula growers will have full access to Emerald’s globally competitive grain marketing and logistics network,” Mr Winney said.
Emerald is backed by a 50 per cent joint venture partner, Sumitomo Corporation of Japan.
“Through Sumitomo and its offices in 66 countries, our grower customers have access to a range of grain consumers throughout the world, particularly into rapidly growing markets in East and South Asia.”