CBH has declared war on critics of the co-operative as it prepares an aggressive strategy to take the fight to the multinational companies growing more active in the Australian grains industry.

CBH chairman Neil Wandel called for an end to speculation about the corporatisation of the grower-owned co-operative from what he described as a "vocal minority".

Mr Wandel said those calling for corporatisation, including the Pastoralists and Graziers Association and Agricultural Region MLC Jim Chown, were creating the false hope that it would solve the problems of struggling farmers.

"CBH is clearly worth a lot of money but it is misleading to growers to suggest that a short-term, one-off distribution of equity will somehow make the WA grain industry more sustainable over the long term," he said.

"Growers currently benefit from an average $100 million of reinvestment in services and capital projects every year, and the lowest storage and handling fees in the country.

"These benefits could not be guaranteed under a corporate model that is feeding profits back to shareholders.

"You only have to look at NSW as an example.

"ou would struggle to find one grain farmer in NSW who doesn't want to go back to a co-operative model.

"Supply-chain costs have gone up; control has passed to shareholders and on to takeovers by international conglomerates."

The PGA and Mr Chown, the parliamentary secretary to Treasurer and Transport Minister Troy Buswell, believe it is time is right for the 4300 grower members to consider corporatisation of their multi-billion dollar asset.

PGA grains committee vice-chairman Aaron Edmonds said the co-operative model could not solve debt problems among growers, help growers seeking to exit industry or ease of the risk of land prices falling even further.

"We think it is the high-water mark in terms of CBH's value, not just because of the competition it faces but also the potential for CBH grain intake to start reducing if this debt crisis isn't addressed," Mr Edmonds said.

"The government packages will just give some farmers a shovel to dig a deeper hole and the ramifications of that could be an even bigger mess.

"Wesfarmers is a classic example of what is possible and how it doesn't necessarily mean the company is sold overseas."

CBH is facing competition in grain accumulation, storage and transport after operating as a virtual monopoly for the past 80 years.

New York Stock Exchange-listed Bunge and Chinese-backed interests are setting up supply chains from Bunbury and Albany ports respectively.

With US-based Archer Daniels Midland set to complete a $3 billion takeover of GrainCorp this year, CBH will become the last big player in the Australian grains industry not in multinational hands.

Mr Wandel said there was no "high-value time or opportunity to miss" because CBH was continuing to grow and evolve. "There are significant opportunities for CBH and the growers of WA and we intend to focus on capturing those, not wasting time on speculation," he said.

A leading consultant on corporatisation of farming co-operatives said CBH, which made a record $162 million profit last year, was in a strong position and should look to expand on the east coast.

Kidder Williams managing director David Williams said the Bunge and Chinese operations in WA would be "like gnats on an elephant's backside".

"The multinationals operating on the east coast have much more reason to fear CBH than it has to fear them if it decides to flex its muscle," he said.

The West Australian

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