Thursday 30 January, 2014
An information paper
The export grain supply chain is the system that collates grain from farms then distributes it to overseas end users. There are a set of processes that make up the supply chain, including storage, handling, freight and shipping as well as ancillary services such as financing, regulation and quality testing. Each of these is critical to delivering grain to end users, but each part involves a cost. Maintaining the balance between low cost and high service is critical to the competitiveness of the industry in the global market. A low cost supply chain that does not deliver timely, high quality grain may impose unseen costs, whereas a high cost supply chain needs offsetting reductions in cost, most likely by the production sector, to maintain competitiveness in international markets. This information paper report on the costs of Australia’s export grain supply chain.