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Increased on-farm grain storage could shave at least $25 a tonne off the price of grain handling, putting more money in grower’s pockets.
STORAGE SAVINGS: Jim Riordan, Riordan Grains managing director, said big savings could be achieved, if more product was stored on-farm.
That’s the view of Riordan Grains managing director, Jim Riordan.
“There will be a plethora of on-farm storage built in the next 10 years, far greater than we have ever seen before,” Mr Riordan said.
He identified increased on-farm storage as bringing the biggest productivity boost and cost savings for farmers.
Mr Riordan said bulk handlers charged between $15 and $20 a tonne to store grain. “Obviously this comes off the cash price paid.
Mr Riordan said additional savings could be found through rigorous on-farm sampling.
“Farmers pay an average $10 – $12 to cart to the bulk handler at harvest. And say carting to the home silo costs $5, so that saves $5.
Ouyen grower and former Victorian Farmers Federation grains group president Ian Hastings said it was costing $90 a tonne to get product to port.
“You are looking at a port price of $270 a tonne, but we are giving a third of that away,” Mr Hastings said.
He said Mr Riordan appeared to be trying to lower the freight price.
Bulk handler GrainCorp’s operations general manager Nigel Lotz said the company’s Project Regeneration aimed to build bigger sites, to ensure larger loads and more efficient rail turnaround.
“Grain can quite easily go from ex-farm to customers,” Mr Lotz said.
On the rail side, productivity improvements would come from new generation wagons, which could carry a higher net weight.
“I am very passionate about agriculture, but it’s a variable game,” Mr Lotz said.

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