Finally dynamic binning for Malt

[malleefarmer]

About time. Sorry cut and paste.

ITERRA is introducing dynamic binning for barley across its network for the 2019-20 harvest.

Expanding dynamic binning to barley in addition to wheat is part of Viterra's ongoing focus to improve its services through continued investment in its supply chain and passing efficiency gains and cost savings directly to grower customers.

Viterra operations manager Michael Hill says growers will have the opportunity to have their barley upgraded with dynamic binning available for malting barley varieties Planet, Scope, Spartacus and Compass, as well as Feed1.

"We are pleased to introduce barley dynamic binning following the success of wheat dynamic binning last harvest and feedback from growers asking for a similar option for barley," he said.

"Our wheat dynamic binning provided significant value back to growers, about $6 million in the 2018-19 harvest, and we will again provide it this harvest for ASW1, APW1, H2 and H1 grades.

"We've been able to provide a valuable service to growers while also maintaining market access for SA grain and continuing to meet the high standards of end use customer requirements.

"Dynamic binning also had the added benefit for growers of creating efficiencies in the classification process and improving turnaround times at harvest due to less retests being requested."

Mr Hill said dynamic binning provided growers with more flexibility to potentially access a higher grade for loads that were just outside of receival standards for protein, screenings and test weight in both wheat and barley, and also retention for barley.

"In addition to dynamic binning, we also provide a 1 per cent tolerance for moisture above Grain Trade Australia receival standards on all wheat and barley deliveries, which has been in place for a number of years," he said.

A dynamic binning upgrade will be given if the load falls within the specified tolerance zones, the load meets all other quality requirements including variety, contaminants and maximum residue limits and the higher grade segregation is available at the delivery site.

Viterra made a significant upgrade to its IT grain management system in 2018, which enables the quality of grain to be monitored closely in real-time to ensure it meets outturn standards.

"We provide the upgrade instantly at classification and the grain is available immediately for growers to transact," Mr Hill said.

"If the rolling stack average for a grade falls below the GTA receival standards then dynamic binning will not be available until the average again meets grade receival standards. This is to ensure that grain is not compromised at outturn."

[malleefarmer]

Sorry blonde moment hoping guessing you guys know what stacked average is when grain is delivered but not really applicable to you guys as you deliver later and have no choice or opportunity to use stacked average advantage.

If your clever and freight permits you pick and chosse your elevator all on public forum by vittera and cargill/awb each morning you can check average of each elevator.

[farmaholic]

This sounds good. But am surprised the GrainCo isn't taking the grain on spec, blending it themselves, and pocketing the spread.

We know it happens with malt here but some guys' barley gets rejected after delivery and being co-mingled with other producer's barley.....how can that be? Bet they only target the "weak" customers! I would take samples upon delivery, split the sample, use "sample and seal bags" and each party has an agreed upon sample in case there is any disagreement or problems.

Own your power!!!!!!

[farmaholic]

If you are talking about public delivery points where different companies store grain in the same facilities or producers can deliver there and retain unpriced ownership ....nope that doesn't happen here, but who knows how much horse trading happens at port position where multiple GrainCos own and operate out of the same facility......but by that time the GrainCos own the grain.

[malleefarmer]

Almost midnight here saturday night pitter patter of light rain.

If number one malt is say 8.5 to 11% protien and you deliver 11.1% it gets segregated as feed barley.

But that will change with dynamic binning.

Whole elevator average say let use 45,000 tonne of malt and average is 9.9% your load of 11.1 is gonna make a huge difference. So will get binned as malt 1 and paid as malt 1 but techinically is feed all depends on average.

Same has been done with wheat for last 2 years.

When we had single desk we had what was termed "cliff face pricing" difference between grades was enourmous but wheat board blended it and never passed it on. Since deregualtion things have loosened up and now with dynamic binning even better.

Lots of the stuff done from single desk days is coming out as time passes and is released but nobody really gives a rats tossbag as we all knew it was happening.

If they were squeaky clean and above board like your cwb things might have worked out better but history now never even discussed, missed about as much as soiled underwear.

ps parden the pun "above board" lol

[GDR]

Almost midnight here saturday night pitter patter of light rain.

If number one malt is say 8.5 to 11% protien and you deliver 11.1% it gets segregated as feed barley.

But that will change with dynamic binning.

Whole elevator average say let use 45,000 tonne of malt and average is 9.9% your load of 11.1 is gonna make a huge difference. So will get binned as malt 1 and paid as malt 1 but techinically is feed all depends on average.

Same has been done with wheat for last 2 years.

When we had single desk we had what was termed "cliff face pricing" difference between grades was enourmous but wheat board blended it and never passed it on. Since deregualtion things have loosened up and now with dynamic binning even better.

Lots of the stuff done from single desk days is coming out as time passes and is released but nobody really gives a rats tossbag as we all knew it was happening.

If they were squeaky clean and above board like your cwb things might have worked out better but history now never even discussed, missed about as much as soiled underwear.

ps parden the pun "above board" lol

Can the scenario work against you too if your grain meets spec but elevator average is poor would you be downgraded?

[malleefarmer]

Can the scenario work against you too if your grain meets spec but elevator average is poor would you be downgraded?

If your grain still meets malt spec will be malt on when your just out either way but get your thoughts altenatively check each elevator and take it to another one. does happen with wheat

[Blaithin]

Sorry blonde moment hoping guessing you guys know what stacked average is when grain is delivered but not really applicable to you guys as you deliver later and have no choice or opportunity to use stacked average advantage.

If your clever and freight permits you pick and chosse your elevator all on public forum by vittera and cargill/awb each morning you can check average of each elevator.

You mean elevators there publicly post their averages for things like protein, moisture, oil, falling number, etc?

[malleefarmer]

You mean elevators there publicly post their averages for things like protein, moisture, oil, falling number, etc?

Yes done daily

[Blaithin]

So here, with wheat more particularly, there's incentives and discounts per .1% of protein. If we apply that idea to your malt example...

Would producers get full malt price for 11.1% barley or would they be discounted for each point off of 11% that they go? They'd still be getting higher than feed, but the farther away from ideal the farther away from full malt price?

Or as long as their specs keep it within the tolerance of the shipment they get full price?

[malleefarmer]

Or as long as their specs keep it within the tolerance of the shipment they get full price?

Correct.

Wheat our standard is APW 10.5 to 11.5% protein. Usually about a 15 spread between grades, except for AUH2 often no premium above apw but blended by buyers thats there perogative nowadays they openly admit to it.

Different segregations open up at the drop of a hat. Last year for example drought year crops were short in volume and height a a barley "F1S" segreagation was opened for barley with sand in it which otherwise would have been rejected. Like me though we sold that straight to feedlots blendedd through ok once through hammermills etc

You kinda have to roughly know what your grade is during harvest and its mix and match were you deliver it or store on farm. Except for years when protien is high and theres demand im often better of with domestic market.

Pools are still run by AWB/Cargill and vitterra. Suggest 90% wheat sold for cash 10% pooled and malt barley maybe 80/20 and feed barley probably 100% sold for cash.

[Blaithin]

So I think we're getting the idea of what you're saying and it sounds like it would be a nice option, especially in lieu of contracting.

Wondering how it would work with grades though. Does Australia wheat get graded on a similar system to ours? I'm trying to remember if I've ever heard of different grades and I'm drawing a blank...

Here we have 1CWRS, 2CWRS, 3CWRS and feed as an example. If you had an elevator wanting to ship out 2CWRS and had mostly 1CWRS in store, would your dynamic binning mean producers could spot deliver 3CWRS and get 2CWRS prices? If that makes sense hah

Keeping in mind when it comes to grades the main degrading factors here are frost and mildew as subjective factors, other things like sprouts, heated, ergot, etc could be more easily applied to the dynamic binning I think.

[LEP]

From your comments, it looks like the grain companies get paid to aggregate and ship grain rather than trade it.

[farmaholic]

Interesting thread Mallee.

Who owns the "bunkers"(????) that the grain is delivered to?

Can you deliver it and not price it, in other words store it there? How much $$$?

[malleefarmer]

Interesting thread Mallee.

Who owns the "bunkers"(????) that the grain is delivered to?

Can you deliver it and not price it, in other words store it there? How much $$$?

In my state farmers used to SACBH south australian co-operative bulk handling then shares were issued on amount of grain delvired over a period of time think it was 10 yrs it morphed into ausbulk.

Then vitterra bought from farmers which ended in glencores hands.

But there are strict legislative requirements which make life hard to glencore basically open access to all.

In West Aust they are the only state that still have farmer owned facilities.

When farmers sold to vitterra its was basically a split vote 50/50 i voted against it. More money was offered it went through.

Since closed maybe half even more of the sites and made bigger regional sites im lucky have one 28 kms away and a smaller one 16 kms away.

Yep you can store and not price. You can store and not disclose you have grain there personally but whats the point buyers know total in silo and total unsold just dont know who if you choose to do it that way.

If you wish you can pull you unsold grain out, you can outrun domestically doesnt have to be export.

Might be a messy system to you guys but it works and was kinda nutted out reasonably well before deregulation of markets was 100%

So different than you guys you have tyranny of distance and that white stuff that comes in winter that makes grain hard to move and that range of hills to go over.

On west coast of my state must be 600 kms farmers and miners have a joint venture to build a new port facility. But the mining side of it seems to be on back burner. Not quite sure of state of play.

https://www.graincentral.com/logistics/deepwater-port-latest-development-planned-for-sas-eyre-peninsula/ https://www.graincentral.com/logistics/deepwater-port-latest-development-planned-for-sas-eyre-peninsula/