WA grain group acquires SA’s oat product manufacturer Blue Lake Milling

Posted by AFN Staff Writers on 29th June 2015

CBH Group LogoLarge WA-based grain growing cooperative CGH Group has acquired South Australian-based oat product manufacturer Blue Lake Milling.

CBH Group says the acquisition is part of its plans to grow oat production and to take the oat products into its overseas markets.

“The investment provides the co-operative with the ability to tap into the south-east Asian oat market and develop a significant regional presence,” said CBH Group Chairman Wally Newman.

Mr Newman said south-east Asia has a growing middle-class that it has an increasing interest in wheat and oats over rice due to their higher protein counts.

It has not been disclosed how much CBH Group paid for Blue Lake Milling.

Blue Lake Milling

Blue Lake Milling began with one flour mill in Mount Gambier  in 1875. It was owned by a O.G. Roberts before being sold to Geoff and Denise Cook in 1978. The company is today a producer of rolled, quick and instant oats. It also makes a range of cereal, flakes, bran, flour and premixes. Blue Lake Milling’s production setup includes a organic plant and two sites in Victoria and South Australia that have a total annual capacity of 60,000 tonnes.

In 2012 the company introduced a new oat de-hulling room which allowed it to expand the number of growers it sourced oats from.

The CBH Group says Blue Milling will continue to operate under its current name and management team.

CBH Group

The CBH Group is now considered Australia’s largest agricultural cooperative with a membership base of approximately 4, 200. It had its beginnings in Western Australia in 1933.

The cooperative’s storage and handling system currently handles around 90 per cent of Western Australia’s grain harvest. CBH already has an international presence with operations in Hong Kong, Tokyo and a 50 per cent stake in Interflour which has mills in Indonesia, Malaysia and Turkey.
The CBH Group states that it owns more than $2 billion in assets and employs approximately 1, 100 permanent employees.