2022-23 Harvest Updates, page-47

Hi @Hopeful9

Graincorp's shipping silos are very complex and detailed, this is in the three big ones, Newcastle, Port Kembla and Geelong

There are multi-storage silos (unlike the smaller operators in the same ports, that have a basic store and ship, with far less capacity or sophistication.

Graincorp's real strength, is that they have a very sophisticated blending system, so they may for instance, have 6 silos with wheat of different grades, to fulfil the contracts that they are selling to (remember they Graincorp have a massive marketing operation run out of the Netherlands) they can maximize the grades needed to fulfill the contracts - by being 'just in' the specifications - this bring better prices for their customers, and also better bottom line. Whereas the smaller operators cannot do this.

An interesting one, that has been common in the USA for many years, is the recent ability to pump the dust back into the grain when it is loaded - there are complex dust extraction systems that are utilized when loading. This is not illegal or even shonky, as the grain contracts allow for between 2% to 3% 'admixture.

It is really the aggregation of small increments that count in the end.

A few $ for blending, a few $ for dust, etc etc, and i am sure that graincorp, having so much control in the supply chain now, ae looking at other ways to aggregate the increments.

Looking extremely rosy for the next 18 moths or so.




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