Southern Quality Produce (SQP) Co-operative is celebrating 10 years of harvest with a 555,000 net profit before tax and is paying dividends to members in the form of rebates on grain and fertiliser traded with the co-op. Their grain-trading business has achieved a 141% return on investment and the struggling germplasm commercialisation business has returned to profitability in just over one year of SQP involvement. In the target geographical area, SQP Grain holds 30% market share after three years inoperation as a separate trading entity. Lack of segregation of specialty grain in grain handling facilities in Western Victoria was the main driver behind the formation of SQP Co-operative in 2001. Sixty-five growers formed SQP Co-operative, which traded grain for six years, before entering into a joint venture with the Emerald Group to form SQP Pty Ltd. This new entity traded 400,000 tonnes of wheat, barley and canola last season. This business structure maintains the co-ops connection with their grower members while using the back office and pool management expertise of the Emerald Group. The company also has access to finance and risk management options that are not readily available to a co-operative.
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