Permanent closure of 16 Viterra silos across South Australia frustrates farmers

Farmers struggling with drought face higher freight costs as 16 grain silos close across the state.

Locked gate at Stockwell Grain Silos, north of Adelaide. The silo is closed due to lack of crops because of the drought.

• Heavy rain predicted for SA this week

The permanent closure of the Robertstown silo – and 15 other Viterra facilities across the state – is “a kick in the guts” for croppers as the Mid North enters its third year of drought, farmer Aaron Niemz says.

Viterra is closing six sites that opened last year for the 2018-19 season, at Minnipa, Kyancutta, Brinkworth, Paskeville, Millicent and Walpeup, in Victoria. A further 11 sites that have not opened for a year or more are being closed at Cungena, Waddikee, Kielpa, Wharminda, Orroroo, Redhill, Robertstown, Long Plains, Stockwell, Wunkar, Alawoona.

Mr Niemz said the move would add an extra $12 to each tonne of grain he delivered, because of added freight costs.

“We were notified by email that Viterra would be closing the silo down indefinitely,” he said. “The silo was shut down last year, because there wasn’t the grain around to warrant opening it up. That was understandable. But to see it closed indefinitely, it’s very frustrating.”

Mr Niemz was also advised that bunker storage at his next closest delivery point at Eudunda would also be closed.

“While Eudunda is still open, the fact they’re shutting down bunker sites there will mean more trucks will be forced to go further afield.”

Mr Niemz said it was likely he would have to take his grain to Roseworthy, one of the busier receival centres in the state.

Viterra operations manager Michael Hill said the company was making changes to its site footprint which reflected the changing delivery patterns of growers and the changing environment. “The changes are aimed at providing customers with the most sustainable and efficient supply chain,” he said.

“Based on a five-year average, the sites set for closure represent less than 2 per cent of total receivals. “Viterra’s investment is focused on its larger sites where it can provide the highest level of service to growers. This includes the ability to handle all truck configurations, segregation options, elevation capacity, turnaround times, opening hours, infrastructure and staffing.”

Mr Hill said since 2010, the company had spent more than $350 million on capital projects and maintenance and would continue to invest $40 million in its supply chain each year. “We have communicated directly with growers to advise of these changes in advance of the 2019/20 harvest to help plan their operations,” he said.

“Viterra plans to open 67 sites across SA for the 2019/20 harvest, with no changes to the overall provision of storage capacity.

Viterra silos set for closure

■ Cungena, 21 kilometres from the Poochera silos on the Eyre Peninsula.

■ Waddikee, 25 kilometres from the Darke Peak silos.

■ Kielpa, 9km from Rudall silos.

■ Wharminda, 26km from the Port Neill silos.

■ Orroroo, 43km from the Booleroo Centre silos.

■ Redhill, 29km from the Snowtown silos.

■ Robertstown, 21km from the Eudunda silos.

■ Long Plains, 16km from the Mallala silos.

■ Stockwell, 36km from the Tarlee silos.

■ Wunkar, 22km from the Loxton silos.

■ Alawoona, 45km from the Loxton silos.

Six set for closure that opened last year are:

■Minnipa, 41km from the Poochera silos.

■ Kyancutta, 13km from the Wudinna silos.

■ Brinkworth, 40km from the Gulnare silos.

■ Paskeville, 28km from the Wallaroo silos.

■ Millicent, 145km from the Frances silos.

■ Walpeup, Vic, 108km from the Pinnaroo silos.