Silo manufacturers booked out as farmers invest

Silo manufacturers say their order books are “overflowing” as cashed up farmers invest in larger on site storage.

Farmers are increasingly investing in larger on farm storage. Supplied: Ahrens

Silo manufacturers have their order books full until mid next year as cashed-up farmers invest in bigger on-farm storage options ahead of their second consecutive bumper harvest.

Silo manufacturers across Victoria and NSW say they have been working overtime to fulfil orders in the lead up to this year’s harvest and demand is showing no signs of slowing down.

At GE Silos in Goornong, Victoria, owner Jason Comer said his team normally had two to three months lead time between taking and fulfilling orders, but that had stretched out to six “because we can’t build enough of them fast enough,” he said.

“We’ve been doing overtime for a solid four months, including working on weekends,” he said. Although overtime was normal in the lead-up to harvest, “this year we’ve been doing it for longer,” he said.

At Ahrens Silos in Tarranyurk, western Victoria, general manager Aaron Bain there was “as much overtime available as anyone wants” as the company worked through an order book stretching out to August 2022.

Normally Ahrens would have a quieter period during the first six months of the year, but for the past three years demand has remained consistently high, Mr Bain said.

This year the company was fielding extra demand from farmers for fertiliser storage as they looked to secure their supplies in an uncertain global market, Mr Bain said.

While demand for on-farm storage has increased, skilled workers are hard to find, and Manufacturers Campbells, Kotzur and Ahrens all told The Weekly Times they were searching for skilled staff.

Mr Bain said Ahrens, employs about 50 people and “could easily employ 10 more”, but it was constrained by a shortage of skilled and international workers.

Campbells Silos part owner Beth Campbell said the company, which employs 10-20 people, urgently needed up to three welders at its site in Nhill to help fulfil an order book that was “overflowing”.

Kotzur national sales manager Colin Gray said the company, which has sites at Walla Walla in NSW and Toowoomba in Queensland, was “continually searching” for more skilled staff to add to its teams.

The Grains Research and Development Corporation grain storage extension project co-ordinator Chris Warrick said there was a definite trend towards farmers investing in bigger on-farm storage to smooth out harvest logistics.

“The investment in on farm storage is as much about harvest logistics, as it is about trying to capture price,” he said.

“As the scale of farms gets bigger, the scale of storage is growing. There is increasing demand for flat bottomed silos of 800 tonnes and upwards.”

Bigger storage options on-farm meant farmers were able to keep harvesting for longer hours and make the most of good conditions, he said.

“In a high yielding year growers often can’t deliver to a bulk handler site as quick as they can harvest,” and when there are storms around, there is “added pressure to get the grain off as soon as it’s as ripe”, he said.

“Growers are likely to use on farm storage, if for no other reason than to keep the headers moving.”