WA grain cooperative CBH Group has announced plans to build a modern oat processing facility at its Metro Grain Centre in Forrestfield, Western Australia.
CBH chairman Wally Newman said that the project would builds on the co-op’s acquisition of major processed oat supplier Blue Lake Milling (BLM).
“This investment grows our oat processing business to improve returns to the co-operative, increase rebates to growers and strengthen demand for WA oats,” Newman said on July 1.
“Through the investment in BLM we have acquired the skills and capability to further grow Australian oat processing and fulfil the growing export demand,” he said.
“It’s an opportune time for the co-operative as we leverage BLM’s expertise in this area with the location of the CBH Metro Grain Centre already providing all the necessary grain handling infrastructure and container loading facilities required for a project of this scale.”
Blue Lake Milling boss Ben Abbot said the facility would be the company’s third plant, adding to its South Australian and Victorian processing sites.
“Once complete the new processing facility will make BLM the largest independent oat processor in the Australasian region,” Abbot said.
“The new Western Australian plant will enable the BLM business to increase its ability to service the growing Asian demand for oat products; using locally grown oats.”
Newman says a major goal for CBH is to further capitalise on opportunities that exist in Asia.
“Food safety is important to our Asian customers in the oat market and the Australian made brand is highly valued for this type of product,” he said.
Construction on the BLM oat processing facility in Forrestfield will begin later this year and will be scheduled for completion in December 2017.