April 25, 2014

Australia's Tasmanian Stockfeed Services purchases Devonport Silos

Tasmanian Stockfeed Services has purchased the Devonport Silos for AUD1 million (US$930,000) from Australian agribusiness Ruralco.

The Devonport silos are based at the wharf at Devonport on the Island of Tasmania, and in total has a capacity of 80,000 tonnes of grain. The silos are strategically located close to most Tasmanian grain growers and feed consumers, an ideal location to supply their customers with product from the mainland.

Tasmanian based feed and grain trader, Tasmanian Stockfeed Services, trades 250,000 tonnes of grain annually, of which a third is shipping product from the mainland to Tasmania.

Owner of Tasmanian Stockfeed Services, Trevor Macleod says there are risks and bottlenecks with Tasmanian shipping that can be overcome by having the central grain store and feed mill.

"We're looking at minimising those risks by having a buffer of grain in the silos, and not relying on daily shipments as much as we currently do. Also, there are inefficiencies in the current system of handling containers in the state, Macleod said.

In addition to the acquisition of the silos, the company is also looking to build a new feed mill at the same site. The feed mill they are looking to construct will be 75,000 and 100,000 tonnes annually and will use local ingredients.

Plans for the feed mill have already received Council approval, but the AUD5 million (US$4.6 million) needed for the project is still to be secured.