On-farm storage rises in importance post deregulation

On-farm storage rises in importance post deregulation

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Jonathan Dyer, Kaniva, western Victoria, says most farms in his area have put in more on-farm storage following deregulation.

Jonathan Dyer, Kaniva, western Victoria, says most farms in his area have put in more on-farm storage following deregulation.

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Farmers in the post deregulation era are using on-farm storage as a means to maximise returns.

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KANIVA district grain grower Jonathan Dyer never farmed during the single desk era but said he would be frustrated if a system was in place that restricted the current marketing options he had now.

“Where we are now, at Kaniva, we’re 310 kilometres from Adelaide, 310km from Portland and 500km from Melbourne so we have a lot of options available,” Mr Dyer said.

“It would be frustrating if we didn’t have the chance to choose which market we targeted according to the best fit at the time,” he said.

He said by using on-farm storage (OFS) and their own transport, the family business had the chance to create efficiencies.

“We can store the grain on-farm and get it to port cheaper than a bulk handler and that is all money in our pocket.”

Mr Dyer said he felt there was a lot more focus on on-farm storage in his area than there was a decade ago.

“I wasn’t farming then but I would say most people in the area have invested in storage in the past decade.

“It hasn’t just been for wheat, obviously, the pulse story has been huge over the past few years, but having the ability to market wheat means there is the total amount of grain produced to make the storage viable year in, year out.”

Mr Dyer said in his family farm business wheat was stored according to specifications and marketed during the year.

“This year was a classic year for storing grain on-farm, we’ve seen a really sharp rise in price and because we’ve had stored grain we’ve been able to sell at those higher prices.”

He said surplus grain has had to go into the bulk system and that it had been a missed opportunity.

“For logistical reasons we had to put some grain in the system and that meant we sold it earlier, when the right thing on paper was to store it on-farm.”

He said many farmers in the area had adapted with similar systems in the years following deregulation.

“I don’t know whether we are worse or better off, it is all I have known but certainly the world is a different place to ten years ago.

“Some of those functions of the single desk, such as marketing based on their own global information, were really important back then when many growers did not have access to information, but now you find out with the click of a button.”

The story On-farm storage rises in importance post deregulation first appeared on Farm Online.

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