Western Australian grower co-operative, the CBH Group, has purchased leading South Australian oats manufacturer Blue Lake Milling.

CBH Group Chairman Wally Newman said Blue Lake Milling will continue to trade as Blue Lake Milling with the current team managing the day-to-day business.

"We look forward to working alongside the dedicated team that has built this successful business and continue to service its valued customers," he said.

"Blue Lake Milling is an Australian success story. The team has a wealth of technical and industry knowledge. We want to learn from that and build a regional presence, enabling the CBH Group to support the development and growth of the oats industry in Australia.

"There is strong growth in grain consumption throughout the south-east Asian region with a rising middle-class, increasing population and a move towards higher protein grain products such as wheat and oats over rice."

The CBH Group is a grower owned co-operative that manages Western Australia's annual grain harvest. It has receives, handles, transports, ships and markets the majority of the state's grain. It also has investments in seven flour mills and a port facility in south-east Asia.

"Bringing together Blue Lake Milling's technical and industry expertise with CBH's experience in the region, we can build sustainable long term demand for Australian oats," said Mr Newman.

Blue Lake Milling specialises in oat milling and produces rolled, quick and instant oats. It also innovates, manufactures, packages and distributes an extensive range of niche cereal flakes, bran, flours and premixes.

It has a total annual capacity of 60,000 tonnes over two sites located in Bordertown, South Australia, and Dimboola in Victoria.

Blue Lake Milling employees pictured at the site today, from left, Quality Officer Jason Revell, Quality Manager Phil Merrett, Production Manager Wayne Tink and HSE Officer Quentin Ashfield. Jason and Phil are Dimboola-based while Wayne and Quentin cover both Bordertown and Dimboola.