Industry Analysis & Industry Trends
Participants in the grain storage industry provide external sites of storage to grain farmers. The industry typically serves as a link in the chain between farmers and export. Wholesalers and grain marketers use the industry's services and are active within the industry through logistics and warehousing divisions. The industry's value proposition to customers is stable over time but demand for industry services is extremely volatile. This is demonstrated by the five years through 2011-12, as industry revenue grew an annualised 15.7% to $2.23 billion. Current year revenue growth is forecast to be 4.1%. This growth is well above the average for transport and storage industries, and is the result of grain volumes recovering as drought conditions ended... purchase to read more
Industry Report - Industry Products Chapter
Many operators in the industry are integrated providers of storage and marketing services for commodities. Grain storage is an intermediate step in the grain supply chain between grower and export. As such, the industry provides a range of services to prepare grain for sale while it is in storage.
Storage
Storage of grain is the industry's largest service. A range of different storage facilities are used in the industry, from grain sheds to silos. Grain storage operators achieve economies of scale by storing large volumes of the same commodity in the one storage facility. Typically volumes are weighed as they enter with the operator allowed a margin for shrinkage. This allows large operators to store grains more cheaply than farmers could by themselves... purchase to read more