Australia: ABB Grain Ltd announced on October 7 that it had been able to increase services to growers and keep 2004/5 harvest fee adjustments below the cost of inflation by realising efficiencies within the storage and handling system. General manager storage and handling John Warda said on average fees had been adjusted by 20c a tonne, pinning costs below the inflation rate of 3% despite significant external cost pressures on inputs to the storage and handling business, including insurance, power and chemicals.

“Increased costs have also been experienced in the ongoing management and improvement of Safety, Health and Environmental initiatives to ensure that the activities of the business not only comply with legislative requirements, but also protect our employees, customers who visit our premises and the communities which surround our sites,” Mr Warda said.

The company had recognised the importance of delivering a dependable receival service, and had implemented a long-term maintenance plan, which had seen maintenance expenditures increase by over 60% compared to the 00/01 to 02/03 average.

“Increased infrastructure reliability has been complemented with extended opening hours and a focus on reducing turnaround times to further improve service delivery,” he said.

Mr Warda added the company was also improving service levels, significantly increasing intake rates by acquiring an additional twelve drive over hopper stackers, each with an intake capacity of 400 tonnes an hour, boosting total intake capacity by 4800 tonnes an hour. “We are also increasing the storage capacity on the Far West Coast at Thevenard where we are building and refurbishing bunkers in anticipation of a bumper harvest in that region.

“At the opposite side of the State at Lameroo we are also adding to our storage capacity as we anticipate that region is likely to experience an above average harvest too,” Mr Warda said.

The company would also be extending its popular On-Farm Pickup scheme to 35 sites this harvest adding Lameroo in the east and Poochera and Lock on Eyre Peninsula. “This service has grown increasingly popular over the years and this year we will be involving more carriers than ever,” Mr Warda said. “The on-farm pickup scheme is a true win-win all round system as farmers benefit from the lower rates we are able to organise, we benefit by being able to direct grain flow to our strategic sites and the carriers benefit through prompt and secure payment systems.”

Mr Warda said ABB would be retaining the fee structure familiar to growers this harvest with different receival fees for major grades and minor grades and grains and a 50c increment at most road based sites. “The higher charge is levied on minor grades to take account of the higher costs associated with poor storage utilisation and the reduction in intake efficiency. Based on previous years’ wheat receival data major grades will make up about 92% of the wheat we will handle.” Mr Warda said ABB would continue to direct bill growers for receival and elevation fees this harvest as it had done in the past.

Storage fees in South Australia for feed barley is A$/t - 9.20 and for malting barley A$/t - 11.20.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .