GrainCorp acquires new grain storage ahead of harvest

GrainCorp’s newest purchase is the latest development in bankruptcy proceedings against Brenton Strauss.

Nhill Bulk Handling. Picture: Greg Scullin

GrainCorp has bought a new grain storage site in Nhill after its existing site in the town reached capacity during the 2018-19 and 2019-20 harvests.

GrainCorp acquired the former Nhill Bulk Handling site off the Western Highway in October, adding 120,000 tonnes of storage, an extra weighbridge and an extra double-sided sample stand to the company’s total capacity in the town.

Nhill Bulk handling was previously owned by disgraced grain trader Brenton Strauss under the company name Crazy Lace (SA) Pty Ltd.

The news came more than seven years after another company owned by Mr Strauss, Sapphire (SA), collapsed.

Sapphire (SA), which traded in Victoria, NSW and Queensland as River City Grain Co, was placed in administration in 2014 after incurring debts of about $10 million.

Crazy Lace was put up by Mr Strauss as a guarantor for a $1 million settlement of Sapphire’s debts in 2015 under a deed of company arrangement.

But the DoCA fell through and Mr Strauss later settled legal action against Crazy Lace for $50,000, allowing him to continue operating the Nhill Bulk Handling site.

In October last year, he listed grain handling and testing equipment for sale, indicating he planned to shut down the site.

ANZ Bank once had security over the Nhill Bulk Handling site and a source said there were a number of caveats over the property.

NEW SITE INCREASES CAPACITY FOR GRAINCORP

A GrainCorp spokeswoman said the company’s existing site at Nhill had consistently received more than 150,000 tonnes of grain for the past five years, and this year looked to be another large harvest.

“Nhill and the broader Wimmera region has enjoyed several successful years of winter crop harvest,” she said.

“It’s early days yet, but we’re certainly hopeful that growers will experience another bumper winter crop across the Wimmera this season.”

The existing site at Nhill was still carrying old season crop but had “plenty of capacity” ahead of the 2021-22 season, she said.

Nutrien Kaniva agronomist Josh Merrett said crops in the region were getting close to harvest.

Yields looked to be “below the last couple of years”, and some crops had been hit by “isolated hail damage” in recent storms, but overall the region had “dodged a bullet” and high prices would make up for any yield shortfalls, he said.