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 Plastic grain storage bags bring price flexibility 

Plastic grain storage bags bring price flexibility

13 Nov, 2008 09:41 AM
Rather than accept the lower feed barley prices being offered, South Australian grain farmer Kenton Angel has decided to invest in plastic sausage storage bags.

The price of feed barley has fallen substantially in the past few weeks, thanks to low worldwide demand and strong supplies.

Because of South Australia's dry spring, plenty of low-grade barley has been grown across the State.

Kenton and his wife Tracy farm 1750 hectares at Kybunga, in SA's Mid-North.

He concentrates on cropping, with sheep brought in to run on the stubbles, but this year the entire farm has been put under crops.

This season's crops are wheat, barley, peas, beans, canola, and oaten hay.

"We have only reaped barley at the moment and the yields are varying a lot and the quality hasn't been all that good," Kenton said recently.

"Some of the barley has been going Feed 3/F4 and the price offered for those grades at the moment is below the cost of production.

"So, I thought the only option was to try and store it and hope the price goes up."

With it costing about $8/tonne to put grain into the bag and $2 to $4 to take it out - and the current F3 pool returning $145/tonne - Kenton hopes to pick-up between $50-$60/tonne more for his feed barley than if he sold the grain now.

* Extract from a full treport in Stock Journal, November 13 issue.

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We read these articles all the time, are they advertisements for the bags? As your article correctly states you are looking at about $14/tonne plus the additional costs of buying, leasing or renting the two machines needed. Has anyone looked at how much it costs to warehouse your grain with a bulk handler or buy your own silo? I thought not….. So plastic bags protect you from falling commodity prices? Its that easy? Perhaps someone should give BHP and RIO a call, if they put all their iron ore into these bags just think how much money they would save….
Posted by Bill, 18/11/2008 3:03:21 PM

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Kenton and his wife Tracy farm 1750 hectares at Kybunga, in SA's Mid-North.
Kenton and his wife Tracy farm 1750 hectares at Kybunga, in SA's Mid-North.
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