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GrainCorp welcomes grain into the system out of temporary farm storages

Grain Central, March 29, 2017

FARMERS lobbied the bulk handler to receive post-harvest deliveries, and GrainCorp has responded today by opening designated southern sites to farm-stored grain, and allowing a tolerance for — previously nil tolerance — live stored grain insects.

GrainCorp calls its new program FarmDirect.

It will commence next Monday, April 3, at 12 country silos in southern NSW and Victoria and one week later at Geelong Port.

FarmDirect will allow growers to turn grain from farm storage, for the first time with live insects, into the GrainCorp warehouse system.

The program is Graincorp’s response to calls from growers to help maintain the marketability of their grain which, since harvest, has been stored on farm.

“It’s a busy time of year for growers who’ve had rain…they’re focused on planting, but need to still maintain quality and marketability of their grain,” GrainCorp’s Luke O’Donnell said.

After the frenzy of harvest time receivals and post-harvest outturns, activity at country sites has lessened.

Economy of scale — better use of specialist equipment

In a turning point for the bulk handler, GrainCorp recognised that there’s a couple of million tonnes of grain stored on farm and it could combine a scale economy with the 12.3Mt of grain its system already handled this year.  GrainCorp reckoned that 90 pc of the grower-warehoused grain on their system had been sold.   It saw an opportunity to employ components of equipment and skills, and relieve growers of the task of fumigating themselves.

Grain of the 2016/17 season would be received as per Graintrade Australia (GTA) standards, with the exception that FarmDirect would tolerate deliveries with live stored grain insects — GTA standards specify nil tolerance.

Graincorp would encourage growers to bring a sample for testing before delivery, and would require a vendor declaration certifying any chemicals that had been applied.

Quality-assured network

“Grain quality remains the primary focus for GrainCorp so we have a comprehensive quality management plan to meet our customers’ demands,” GrainCorp general manager of operations, Nigel Lotz said.

FarmDirect grain would be quarantined; designated storages would receive, fumigate and manage this grain separately from harvest deliveries. It would be extensively tested as it flowed through the supply chain into both domestic and export markets.

“With the record crop, there is strong export demand. Many buyers are keen to secure additional grain in our quality-assured network,” Mr Lotz said.

“GrainCorp FarmDirect will primarily be available for milling quality wheat and feed barley to service both domestic and export markets.”

“While this is an initial rollout, we hope to work closely with growers and buyers to enhance this service across the network over the next few years,” he said

The commodities and grades that will be accepted will be communicated to local growers via email, text and the GrainCorp price discovery app and may vary by site.

For more information, growers are encouraged to contact their local GrainCorp Site Manager or Customer Manager.  Read the original GrainCorp announcement here.

List of sites initially planned for FarmDirect receivals*:

 

Port Terminals

 

Southern NSW Sites Victorian Sites
Geelong Port / Corio Ardlethan

Barellan

Calleen

Condobolin

Hillston

Junee

Parkes

Berriwillock

Manangatang

Murtoa

Rainbow

Yarrawonga

*check with site manager or customer manager to confirm delivery details.

 

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