Australia: Estimated Silo Returns posted at ABB sites

ABB Grain Ltd posted on November 8 Estimated Silo Returns and cash prices for barley at its sites across South Australia based on the best available information.

Freight costs are an important component in calculating grain prices at individual sites and in recent months ABB has been involved in complex rail freight negotiations with the Australian Railroad Group.

Although these negotiations are not finalised, significant progress has been made. Consequently, ABB is now able to provide estimated grain prices at sites throughout SA for barley and peas.

Freight rate increases are being experienced across the grain industry throughout Australia. Increases are being driven by major increases in fuel, the privatisation of rail and competition for transport resources from other sectors like mining and interstate freight.

“The grain industry throughout Australia finds itself in a difficult situation with fuel increases and uncertainty over the future of many grain branch rail lines,” ABB’s General Manager, storage and handling John Warda said.

“ABB Grain has been concerned to retain the best possible integrated supply chain for grain in SA using a mix of both road and rail. We’ve tried to find the best solution for grain growers, grain marketers, the storage and handler and broader community.”

Mr Warda said substantial change to freight movements was likely on Eyre Peninsula where sites west of Wudinna, and at Buckleboo, would have grain trucked to Wudinna and Kimba respectively for movement by rail to Port Lincoln.

The Eyre Peninsula community, the State and Federal governments, local government, the grain industry and ARG have made a combined effort with the aim of ensuring retention of a rail network on the peninsula.

Under the changes proposed by ARG, Apamurra (a branch from Murray Bridge) and receival sites north of Roseworthy would no longer be served by rail.

“The prospects for harvest are looking excellent and we are gearing up to handle a big harvest,” Mr Warda said.

09 November, 2005