March 12, 2009

Inefficient grain storage and infrastructure is already costing Queensland growers A$25 million (US$16.2 million) a month, which has led AgForce to challenge bulk handler GrainCorp's decision to limit deliveries direct from farms to port.

 

GrainCorp cites biosecurity and logistical reasons for placing restrictions on movements of grain direct ex-farm to the Fisherman Islands port at Brisbane, but AgForce Grains president Lyndon Pfeffer said such concerns are unwarranted.

 

"GrainCorp has cited three reasons for putting a halt on ex-farm deliveries to their ports - the risk of live insects and foreign material in the grain; the risk of chemical contamination; and logistical issues of getting trucks through a port which is operating at capacity," Pfeffer said.

 

"Their reasoning is not justified and implementation of policies used elsewhere in the supply chain could correct any of GrainCorp's concerns.

 

"All of these issues can be overcome, but it appears GrainCorp would rather take the easy route and stop deliveries direct from farm."

 

Pfeffer said Commodity Vendor Declarations as used by livestock grain users are an option to manage the risk of chemical contamination.

 

"The CVD includes a full history of chemicals used on a crop from planting to storage and delivery, something which is lost once it is in a GrainCorp depot. Therefore, the use of CVDs would make the risk of chemical contamination of ex-farm grain lower than that coming from GrainCorp's own sites."

 

Pfeffer said the risk of live insects or below-standard grain can be managed by testing grain at an up-country site en route to port, a practical option for depot operators now that the busy harvest schedule is easing. Using load safety tags removes the need for retesting at port, resulting in greater efficiency through the entire port system.

 

Long truck line-ups at the port are also causing headaches, but AgForce believes a simple on-line booking system could overcome the queues and allow structured movement of grain from all sites including up-country farms.

 

Pfeffer said AgForce is continuing to discuss these issues with GrainCorp, and understands the financial and logistical consequences for farmers, especially those with existing contracts to deliver to the port.

 

Industry figures predict there will be as much as 900,000 tonnes of carry-over grain in Queensland at end of 2009 because there is demand for 300,000 tonnes per month out of Fisherman Islands, yet the existing system is only capable of shipping out 200,000 tonnes per month - resulting in a loss of A$25 million at the farm gate, Pfeffer said.