Confidence in on-farm grain storage grows

On-farm grain storage is on the rise

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THE grain marketing landscape for producers is changing, with on-farm storage becoming more of a feature and talking point among South Australia's graingrowers.

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MULTIPLE BENEFITS: ADM National Accumulation group manager Damian Bradford said storing grain on-farm was offering a range of benefits.

MULTIPLE BENEFITS: ADM National Accumulation group manager Damian Bradford said storing grain on-farm was offering a range of benefits.

THE grain marketing landscape for producers is changing, with on-farm storage becoming more of a feature and talking point among SA graingrowers.

While many growers successfully store grain on-farm and supply niche markets, domestic end-users or export cereal, oilseed and pulse markets via local container packers, the market is seeing a significant shift in this segment of the supply chain.

Alternate bulk-loading options, investment in new processing facilities in the food and feed sector, the opening up of road train access and recent rail loading for east coast domestic markets - among other factors - are providing growers with greater confidence to invest in on-farm storage.

ADM has recognised this confidence extending to the Eyre Peninsula, following the company's successful 2018 ex-farm silo bag program, which has since been rolled out statewide.

National Accumulation group manager Damian Bradford said storing grain on-farm was offering a range of benefits, including improved harvest logistics, alternate marketing and pricing options and the ability to manage segregations on-farm.

Other advantages included building direct farm-to-customer relationships, managing all-year-round selling and cash flow, better utilisation of farm freight and labour, as well as the option of building and investing in a long term on-farm asset.

According to Mr Bradford, support for the SA domestic consumption of the state's wheat and barley is continuing to increase.

The bulk of these facilities are within 150 kilometres of Adelaide, consuming 30 per cent to 35pc of eastern SA wheat and barley production.

"As the supply chain continues to evolve, grain flow will be influenced by market forces," he said.

"But the numbers are indicating sustainable demand for grain stored on-farm from Adelaide and northern EP catchment zones.

"End-users and exporters are becoming more confident and supportive of sourcing grain from professional and well-managed on-farm storage systems."

Growers interested in further exploring on-farm storage can visit the GRDC-funded website www.storedgrain.com.au, which offers a wealth of information on managing the investment, grain quality, fumigation and storage options.

At the Paskeville field days, ADM will be holding an information session on Tuesday and Wednesday, where growers can drop into the stand for a bite to eat and chat with GRDC's stored grain extension manager, Ben White.

Mr Bradford said ADM supported farm businesses in the move to take greater control of their grain marketing, which may include investment in on-farm storage.

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