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News last update:14 Jan 2016

Inefficiency in the Australian grain supply chain

A recently published report has exposed a number of inefficiencies within the Australian grain supply chain. The report revealed its findings after pitting the Australian and Canadian grains industries against each other. The full report can be viewed via a link at the end of the article.

The report titled 'The puck stops here! Canada challenges Australia's grain supply chains' was prepared by the Australian Export Grains Innovation Centre. It compared and contrasted the cost of getting grain to port for Canadian and Australian farmers.

Report author Professor Ross Kingwell said while the actual cost was less for Australian farmers, the distance travelled was considerably less too.

Professor Kingwell said until there was more transparency in Australia's supply chain, Canada would continue to increase its Asian market share.

He said this was not good news for Australian grain growers.

"Grain growers need to take away the message that one of their main competitors is likely to stay a strong competitor so we can't be complacent in Australia and we really do need to look both within the farm gate and beyond the farm gate for every opportunity to make sure that our investment delivers favourable returns to farmers," he said.

"If we don't keep our eye on that ball of being really efficient and profitable, then over time, unfortunately our competitive position is going to be eroded by other players who really have a much more favourable environment in the coming decade."

A full copy of the AEGIC report can be viewed here


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