GrainGrowers has launched a national strategy aimed at increasing the productivity and efficiency of Australia’s supply chain, while bringing down costs for producers.
The national grain freight strategy, which will serve as a road map for the Government to help drive Australia’s global competitiveness, came about after panel discussions involving representatives from across the supply chain.
GrainGrowers chair Rhys Turton said a unified approach was important to address a “complex and multi-faceted” issue.
“In 2022-23, a record winter crop production of 65.7 million tonnes was moved from paddocks across regional Australia, by either road or rail to port for export or to domestic markets,” he said.
“The expense of moving grain is the single largest cost of production, with CSIRO modelling highlighting transport costs of $2.1 billion per annum.”
Mr Turton said Australia’s ability to compete on the global stage was determined by how “efficiently and effectively we can get our grain to market”.
“For context, prior to the conflict between Russia and Ukraine, both countries’ production costs were $70-$120 less than Australia’s,” he said.
GrainGrowers commissioned an international consulting firm to write a report and identify key “pinch points” in the supply chain.
Following the report’s release, GrainGrowers consulted with more than 40 stakeholders to gain further input on supply chain issues.
Mr Turton said the organisation was proud to spearhead the strategy.
“By collaborating with industry stakeholders and policymakers, we’re paving the way for a more efficient and resilient grain supply chain that meets the evolving needs of Australian grain growers,” he said.
“While growers are at the heart of the strategy, with a key focus on the issues that impact transporting grain off-farm such as local roads and bridges, it is vital the approach reflects the views of the broader supply chain.
“What we have now is a clear strategy built around six key objectives, with the potential to make a real difference to the productivity and efficiency of the grain freight supply chain.”
Source Agencies
