Graincorp have been confronted by leakage from the system for 20...

Graincorp have been confronted by leakage from the system for 20 years or more. Every additional grain bunker or silo on-farm gives the grower the option of delivering to a flour mill or a feedlot or a stock feed compounder later in the year. For a food manufacturer or a beer brewer dealing direct with growers it gives potential to have greater control over quality specifications of the grain.

I have not seen the article so I don't know what kind of quantities are being lost to the system from this direct sourcing deal but in a buster year like this one, it is likely to be very minor percentage. More serious in a lean year however. On the other hand, it could be an opportunity for Graincorp to win the business back by sourcing that quality grain direct for CUB and deliver it as required. There has to be an internal cost for CUB to deal with farmers and manage the logistics through the year.