Viterra loads 100th grain train bound for east coast
Demand for South Australian grain continues to rise domestically, with Viterra sending 100 grain trains to the east coast in the past year.
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SA grain handler Viterra recently loaded its 100th train destined for the eastern states, as the domestic demand from the east coast continues to grow.
The train, loaded with barley at Viterra’s Bowmans site, is bound for New South Wales to supply feedlots.
Viterra operations manager Michael Hill said demand for domestic rail movements began in earnest in August last year.
Since that time, 100 grain trains have been sent east by Viterra.
Mr Hill said this domestic demand meant the business had to make significant adjustments to its supply chain.
“We have adapted to meet the needs of the domestic market with dry conditions, particularly on the east coast, increasing the amount of grain being moved to meet stockfeed and food demand. It has added a level of complexity compared to South Australia’s typically export focused market,” he said.
“We had previously only done a handful of domestic trains and we are pleased with how our business has shown its flexibility.
“We have been working closely with a number of buyers and end-use customers to ensure we are getting grain to the right place at the right time which has been extremely important given the conditions.”
Mr Hill said the company had attracted first-time buyers this past year.
“Buyers and end-use customers in New South Wales, Victoria and Queensland who traditionally purchase grain in the eastern states have become buyers in the Viterra system, and many have sourced South Australian grain for the first time,’ he said.
“It has opened up new markets for South Australian growers as well as add to the already multiple buyers for growers to choose from in the Viterra system.”
Mr Hill said Viterra had utilised key rail sites such as Gladstone, Snowtown, Bowmans, Tailem Bend and Keith to facilitate domestic trains. Other sites have been busy as well with increased road movements to South Australian and interstate customers and shipping to east coast and international markets.
Viterra’s Outer Harbor, Port Giles, Port Lincoln, Thevenard and Wallaroo port terminals have vessels scheduled for September, loading wheat and barley destined for various markets.
“We are working closely with our grower customers in the lead up to harvest to provide a valuable and efficient service, while also working with our buyers and end-use customers to ensure domestic and export requirements are met,” he said.
Mr Hill said Viterra was well-progressed with its harvest preparation.
“We will be meeting with silo committees and growers to discuss a range of harvest planning activities including segregations to match what is being grown,” he said.
“We are in the process of recruiting about 1500 seasonal workers to join the business and help bring in the 2019/20 season’s grain. We are still seeking applicants particularly for upper Eyre Peninsula and northern areas.”
Mr Hill said, depending on spring rainfall across the state, the company expected harvest to start in the coming weeks.
“Our sites are prepared for when growers start reaping,” he said.
“Viterra is offering a number of new services this season, as we continue to invest in our supply chain. We have introduced our new Viterra app to make it easier for growers to do business with us.”
Since 2010, Viterra has spent more than $350 million on capital projects and maintenance across the SA grain handling network, and continues to invest about $40 million in the supply chain each year.