GIANT WA grain grower John Nicoletti has thrown down the gauntlet to CBH grain handling operations by declaring he has a vision to build a $5 million storage facility in Merredin to service his eastern Wheatbelt farming operation.
Mr Nicoletti is constructing a 55,000t storage facility over the next four years and would immediately introduce up to five silos.
Mr Nicoletti said he was building his new grain storage facility so his family farming operation could avoid the cost of using CBH and to help promote greater competition in storage and handling.
He said he would begin storing his grain on-farm in an attempt to extract more profits from the supply chain by shipping his produce direct from his farm to key markets in Japan.
The news comes with other reports that Toodyay grower Joe Candeloro is also building a large on-farm grain-handling facility that will house up to 30,000t.
ABB Grain is also making bold moves in grain logistics in WA this season having recently established a container packing facility with the capacity to export grain.
Its aim is to annually pack 5000 containers, but that number in WA would increase in line with ABB's national plans to build from its current capacity of 30,000 containers to 40,000-50,000 containers by the 2009-10 harvest.
Mr Nicoletti said the recent deregulation of wheat exports was generating more competition in storage and handling, which he welcomed.
The new facility would also give him greater bargaining power in grain export markets, he said.
Email a friend