THE AUSTRALIAN Workers Union has launched a scathing attack on east coast bulk handler GrainCorp, claiming its segregation system and site allocation was disadvantaging farmers.
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In particular it singled out GrainCorp's barley receivals, saying key sites were not taking barley, forcing growers to cart hundreds of kilometres to deliver.
The AWU makes an unlikely ally for the production sector, having being involved in disputes with farmers over issues such as shearer pay.
However, AWU NSW branch secretary Tony Callinan said it was important to highlight the impact corporatisation had on the business.
"GrainCorp have lost the plot, they were set up by farmers as a grain receival," Mr Callinan said.
He said he had been informed GrainCorp were not opening smaller sites not serviced by rail, meaning growers in those catchments had to freight grain further.
GrainCorp launched its Project Regeneration scheme, whereby it created a network of major 'primary' sites and smaller secondary sites, back in 2014 and has been investing heavily in more efficient larger sites since then.
"GrainCorp are refusing to invest in existing infrastructure or build additional new storage bunkers at isolated sites, so basically unless your farm is near a GrainCorp depot that is on the main rail line you have limited storage available this year," Mr Callinan said.
Regarding the AWU claims on barley GrainCorp corporate affairs manager Jess Simons said GrainCorp had been receiving significant volumes of barley.
"We tend to receive more barley into our Victorian sites as that's the larger barley growing region, but we've taken over 200,000 tonnes of barley into our NSW sites so far and look forward to receiving plenty more," Ms Simons said.
"There's been a spread of grades and quality across all commodities, but we've been pleasantly surprised by the quality of grain coming into NSW," she said.
Mr Callinan also claimed GrainCorp was turning away weather impacted wheat grades, which he said would force growers to either store the grain on-farm or freight the grain further afield to independent bulk handlers taking off-specification grain.
Speaking on the eve of harvest GrainCorp chief operations manager Nigel Lotz said with the myriad grades likely to be seen due to the wet season GrainCorp would not be the sole point of delivery for growers with downgraded grain.
"It's going to be very difficult to meet all demands this year with such a wide range of qualities of grain coming in but we'll try and do our best," Mr Lotz said.
"I would say we will not be able to be all things to all people, it will not be possible so some off-spec grain is going to end up elsewhere, whether that be on-farm or with other bulk handlers who see an opportunity," he said.
Mr Callinan also accused GrainCorp of charging exhorbitant fees for its services.
"GrainCorp charges farmers a delivery fee, they charge buyers a loading fee then they make a profit when they sell the grain, it's no wonder they just posted a record profit of $380 million for the year ending September 30," he said.
Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
