Viterra cuts 12 silos from network

Viterra cuts 12 silos from network

Agribusiness
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Viterra has announced plans to open 55 grain delivery sites next harvest, 12 less than last year.

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VITERRA has announced it will close 12 grain delivery sites across the state, with four Eyre Peninsula locations among those to have taken their final deliveries.

The grain handler intends to open 55 sites across SA next harvest, with the dozen closed sites playing no future role in the company's network, Viterra operations manager Michael Hill said.

On the EP, sites at Cowell, Mangalo, Murdina and Tooligie will no longer open, while in the Lower and Mid North, Melrose, Gulnare, Tarlee, Two Wells and Mallala will close. Further east, receival sites at Parilla, Murray Bridge and Coomandook have been cut. All sites bar Melrose accepted deliveries last year.

Based on the five-year average, the dozen closed sites took 3 per cent of the state's harvest.

Mr Hill said the remaining 55 sites had previously taken 97 per cent of total harvest receivals.

Last year, the company closed 17 upcountry sites - including at Robertstown and several sites on the EP - sparking the ire of local graingrowers and causing concern about increased truck traffic on key roads.

Viterra says the latest round of site closures will help it meet the needs of customers and ensure SA grain is "competitive in international and domestic markets".

Related reading: Silo closure impacts not realised at harvest

"These are difficult decisions and where this has occurred we are advising growers of delivery options for the 2020-21 harvest," Mr Hill said.

The company says it is "responding to the changing needs and delivery patterns of growers and adapting to the evolving environment for SA's grain industry".

"We are focused on providing customers with the most efficient, cost-effective and sustainable supply chain and delivering value through the services we provide," Mr Hill said.

"Growers are directing the majority of their deliveries to Viterra's larger sites where we can provide more segregation options, faster elevation capacity, quicker turnaround times, longer opening hours and the ability to handle all truck configurations.

Related reading:Silo and bunker closure concerns raised at Eudunda meeting

"These sites are more efficient on receival and outturn. We can provide a higher level of service and greater flexibility, which in-turn provides value and certainty to growers."

Viterra will have 9.8 million tonnes of storage capacity available - well above the state's 10-year harvest average of 8mt.

The grain handler received a total of 3.96mt at its sites during the 2019-20 harvest, with 3.99mt received the previous season.

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