What is CommStream Capital
CommStream provides innovative funding solutions to progressive farmers under a long-term partnership. We provide capital in exchange for commodity with no interest or principle payments required. How?
Through agricultural commodity streaming, we provide upfront capital to farmers in exchange for the physical delivery of a small proportion of your annual production over a term of 5 to 10 years.
By partnering long-term through agricultural commodity streaming, both parties have low exposure to production risk or default risk. Farmer are not exposed to a rise in interest rates under the streaming model, and as we move into a rising interest rate environment in Australia, access to funding through streaming becomes a very viable alternative.
CommStream is the first provider of agricultural commodity streaming in Australia and the second globally.
Why does Commstream Exist?Australian farmers have a number of frustrations with existing finance options...
* Funding is not available when required or is inflexible
* Farmers don't want more debt and most don't want to sell equity in the family business
* Traditional finance compounds when times are tough, for example, paying interest and principle in drought
* Big companies don't care and don't understand family farmers
* The Australian farming sector already has too much debt and more is not the answer!
Our VisionCommStream will provide a credible alternative source of capital to fund farm growth and on-farm productivity. We will offer attractive funding solutions to progressive farmers to contribute toward solving the production requirement to feed the rapidly growing global population.
CommStream’s business model involves entering into long-term commodity off-take agreements (“Streaming Contracts”) through which farmers would be paid an upfront cash payment as well as a pre-determined delivery payment for:
* A fixed tonnage of future commodity production for 5 to 10 years (less than 20% annual production)
* A share in the farmer’s increased production above a benchmark yield
* Price upside sharing with the farmer above a benchmark sale price
CommStream plans to build a portfolio of high quality and diversified agricultural commodities including cereal grains, pulses, oilseeds, cotton and livestock. CommStream is targeting long-term streaming contracts with farmers major, high value commodity producing regions in Australia.
How Does Streaming Work?
These case studies show how CommStream has helped progressive Australian farmers by providing innovative funding solutions. CommStream is focussed on cereal grains, pulse crops, oilseeds, cotton and livestock. If you're a progressive, Australian farmer, we're interested in helping you!
Leading wheat growers use CommStream to expand...
In 2016, the Greentree family, located west of Moree NSW, are progressive farmers and industry leaders producing a range of winter and summer crops. CommStream funding was used for expansion, paying for a new leased farm in a different rain belt and first year planting costs. This increased total planted area improved cash flow and increased total production. In exchange for upfront funding, CommStream is taking physical delivery of Wheat over a 5 year term. CommStream utilises the Greentree's Morialta grain storage site for storage and a commodity marketing base. “This is the future of Australian agriculture — Neil Greentree
Progressive Wimmera Grower uses CommStream to invest in storage...
In 2017, an innovative cereal and pulse crop grower located in the Wimmera, VIC secured CommStream funding to invest in on-farm storage. By increasing on-farm storage, the grower has become less reliant on local commodity handlers, increased harvest logistics efficiency and enhanced commodity marketing options. In exchange for upfront funding, CommStream is taking physical delivery of Wheat over a 7 year term.
Our TeamCommStream brings together exceptional talent including world leading commodity streaming expertise as well as experience managing leading agricultural enterprises, prominent financial institutions and international businesses. The team combines tradition with innovation and boasts a successful track record building innovative companies in commodity sectors.
David Trude, Bcom - Chairman * Over 40 years of experience in financial service roles in the banking and securities industries
* Recently inducted into the Australian Stockbrokers Foundation Hall of Fame
* Current Chairman of E. L. & C. Baillieu stockbrokers, one of Australia’s oldest and most respected financial service providers
* Independent Director of Chi-X Australia
* Member of the Society of Investment Professionals and the Stockbrokers Association of Australia
* Former CEO and Country Manager of Credit Suisse Australia
Mike Chaseling – Director * Mike has over 30 years’ agribusiness experience and is currently an investor and non-executive Director for geo-spatial agri-data business, Precision Agriculture Pty Ltd
* Mike was a co-founder and Director of Emerald Grain, Deputy Chairman and Chairman of the Risk Committee. Emerald grew from concept to top five grain exporter in Australia in 10 years, with over 1 million tonnes owned grain storage, port facilities in Melbourne and a turnover in excess of A$1.5 billion. Mike and co-founders sold Emerald to Sumitomo in 2014
* Prior to Emerald, Mike was CEO of NETCO (group of farmer grain marketing cooperatives) and held senior grain trading positions at ConAgra Trade Group, DR Johnston and the Australian Wheat Board
* Mike has been a Director of Southern Quality Produce Pty Ltd, EP Grain Pty Ltd (Chairman), Southern Ag Grain Pty Ltd (Chairman) and industry body, Grain Trade Australia (Director)
* Mike has consulted to the Sydney Futures Exchange on agricultural commodities and owned an organic mixed farming enterprise in Northern NSW
* Mike holds a Bachelor of Applied Science (Systems Agriculture) from the University of Western Sydney, has completed the Young Managers Program at Mt Eliza Business School, and the Advanced Management Program at the Wharton Business School, University of Pennsylvania
Charlie Blomfield, GAICD, BAgSc, RG146 – Executive Director * Co-founder and Director of CommStream Capital Ltd
* Founding Managing Director and CEO of Agricultural Management Company Pty Ltd (AMC), through which he has worked with clients such as Terra Firma, Qatar Investment Authority, SGRF Oman, Landmark, Guinness Peat Group and major Australian banks in investing and managing their agricultural assets
* From a multi-generational farming family background and has been involved with production agriculture his entire career in livestock, cropping, cotton and horticulture
* Bachelor of Agricultural Science, RG146 compliant for Managed Investments and a graduate of the Australian Institute of Company Directors
* Non-Executive Director of the Future Farmers Network Limited and Former Non-Executive Director of the Agribusiness Association of Australia Limited
* Attendee of the Forbes Global CEO Conference, a meeting of 400 selected global CEO’s, entrepreneurs and leaders
* Regularly quoted in newspapers such as The Australian, Australian Financial Review, Wall Street Journal and Sky News Business Channel
Simon Skerrett, BBus – Chief Operating Officer * Co-founder and Chief Operating Officer of CommStream Capital Ltd
* Simon, a member of a multi-generational farming family, combines strong farming tradition with innovative financial expertise
* Having completed a Bachelor of Finance with an extended major in Funds Management at Queensland Universtiy of Technology, Simon worked for prominent financial institutions including Halifax Bank of Scotland, Commonwealth Bank of Australia and Baillieu Holst Stockbroking
* In 2012 Simon commenced the establishment of an agricultural co-investment model to align farmer and institutional investor interests. The primary aim of the model is to promote the up scaling of existing successful farming operations, leveraging best in class knowledge and technology, providing operators with capital investment for expansion.
* Simon’s work establishing his agricultural fund model has been incorporated into the CommStream structure
* Simon has established extensive relationships with farmers in Australia’s highest yielding grain growing regions, and has gained an in-depth knowledge for the abilities, character and reputation of each farming district and its associated key players
John Howard – Chief Executive Officer * John has been the CEO of the Peanut Company of Australia (PCA) for the last 5 years before finishing up upon the sale of PCA to Bega Cheese. During this time PCA underwent a major turnaround, transformation and evolution where John executed a debt for equity swap with their bank, sold non-core assets (NT farming properties), drove growth through the launch of its own branded products ("Picky Picky" snack and oil products) and ultimately completed the sale of PCA to Bega Cheese.
* John’s career to date has mainly been in the FMCG, Food and Agribusiness sectors with organisations either going through significant internal change or turnaround (PCA , Golden Circle) or industry transformation (Mars). Each of these organisations needed to undertake a major change in strategy, operations and finances in order to achieve their desired outcomes. In the case of PCA and Golden Circle this was achieved through the trade sale of both these organisation at substantial returns to shareholders.
* In addition to the above roles John also spent nearly 10 years in the grain trade (AWB, NSW Grains Board, ABB), 3 years running the family farm at Walgett, NSW and 3 years with Elders.