February 21, 2023

 

Australian farmers ship grains directly from farmers to Oman

 

LW Investments Australia, a company started by Western Victorian grain grower Andrew Weidemann and his West Australian counterpart Barry Large, aims to ship grains directly from Australian farmers to end users, ABC News reported.

 

LW Investments' ship is being loaded at Port of Geelong, Victoria, Australia, for export to Oman.

 

Farmers usually deliver grains to a bulk handler such as Graincorp or Viterra, which then manages export logistics. But Weidermann said end users like Oman Flour Mills were looking to purchase grains directly from farmers.

 

He said that Oman Flour Mills had been importing wheat from Australia for some time, but they had recently discussed about reaching out to farmers directly.

 

Weidermann said farmers also expressed interest, as they were curious about the final destination of their grain.

 

He said it is important to meet the end user consuming their grain and listen to why they want to collaborate more directly with the production end than through the middleman.

 

He also said here were complex logistics involved in international shipping.

 

Since grain buyers have gone bankrupt in recent years, Australian grain growers have lost tens of millions of dollars. As a result, Weidemann said a lot of time is now spent negotiating secure payment terms.

 

He said they needed the cash up front to purchase the grain from the farmer, adding that they have been paying farmers within five days, and in some cases much quicker, after advocating for their payment.

 

Grain growers have shown a lot of interest in contributing to the shipment, according to Weidemann, and he anticipates more to follow.

 

-      ABC News