LOCAL grain producers will need to find alternative sites to transport their grain to this harvest, after distributors Viterra announced its Mallala and Two Wells grain silo sites will close.
Viterra announced last week 12 silo sites, including Mallala and Two Wells, would be mothballed ahead of the coming harvest season, with the company’s Roseworthy site to remain open.
Operations manager Michael Hill said the company was responding to “the changing needs and delivery patterns” of the state’s growers.
“We are focused on providing customers with the most efficient, cost effective and sustainable supply chain and delivering value through the services we provide,” he said.
“Last year, we provided nearly $10 million in additional value directly to growers through dynamic binning, and reduced freight rates, storage and handling fees and warehousing fees.
“We intend to open 55 sites for the coming harvest. These sites have previously taken 97 per cent of total receivables and have the capacity to manage all grower deliveries.”
Six full-time employees at the Two Wells silo site will be left without a job as a result of the closure, with Mr Hill saying those affected will either be offered another role in the company or offered a redundancy.
“Two Wells will continue to take grower receivals by appointment until end of April and packing at the site will continue until end of June,” he said.
“Receivals into our Mallala site have declined significantly in the last five years compared to the previous five years, with the majority of growers directing deliveries to our larger sites.”
Mallala grain farmer Richard Konzag said, although he was unsurprised by the decision, it was disappointing for local producers.
“Two Wells has been a site where we’ve delivered a majority of our pulse crop over many years,” he said.
“I guess I’m not surprised because there’s been closures of small country silos that they haven’t done a lot of upgrades to over the years.
“In other ways I am surprised, particularly because the Mallala site is right on a rail line. We’ve seen a lot of grain get on trains and go to New South Wales and Queensland to cover shortages over there.”
