As Australia’s grain freight costs continue to rise, driven by fuel prices and infrastructure bottlenecks, the strategic location of grain storage has never been more critical. Farmers across NSW and Queensland are increasingly realising that keeping storage close to production not only saves money but also improves operational efficiency.
The Rising Cost of Transport
The agricultural freight network has faced mounting pressure in recent years. With new shipping regulations, driver shortages, and fuel price volatility, freight costs are now one of the largest overheads for grain producers. According to recent analyses, freight can account for up to 30% of total logistics expenses during peak harvest periods. Every kilometre travelled adds cost and risk, especially when dependent on third-party carriers or remote depots.
Why Proximity Equals Profit
On-farm storage significantly cuts these costs by allowing growers to store grain directly after harvest. This approach removes the need for immediate transport to bulk handlers, which often charge storage and handling fees. In addition, keeping grain nearby enables farmers to blend different grades for market optimisation, enhancing overall profitability. Proximity also helps farmers manage time-sensitive tasks like moisture correction or quality checks without waiting for external facilities.
Reducing Risk During Market Volatility
With fluctuating export demand, on-farm storage gives farmers control over when to sell. By monitoring local and international markets, growers can decide to store grain longer during price dips and sell when demand rises. This flexibility has proven crucial during global disruptions, such as shipping shortages and drought cycles, ensuring stable revenue even in volatile markets.
Infrastructure Investment Benefits
Building local or on-farm storage reduces strain on national infrastructure while supporting rural development. It creates jobs in local fabrication, transport, and maintenance, further stimulating regional economies. Many farms also take advantage of modular silo systems from companies like Gwydir Group, allowing them to expand capacity incrementally as yields grow.
Reducing freight dependency starts with smarter infrastructure. Locating silos on-farm or near key production sites is a proven way to cut costs, improve efficiency, and maintain control in unpredictable markets.
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