Finally dynamic binning for Malt

[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/

[farmaholic]

Wheres bucket? He would have some interesting comments.

[malleefarmer]

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.

depends how close the 3cwrs is to 2cwrs if its out by 0.1 of a % protien yes potentially.

Another side issue on all this the flip side almost is local flour mills almost prefer to buy from farmers direct or have the own elevators or a segregation of there own at local elevator along side all the others. They like tighter specs.

[Blaithin]

depends how close the 3cwrs is to 2cwrs if its out by 0.1 of a % protien yes potentially.

Another side issue on all this the flip side almost is local flour mills almost prefer to buy from farmers direct or have the own elevators or a segregation of there own at local elevator along side all the others. They like tighter specs.

Ah, see that's the crux of our grading, protein has very little bearing on a 1, 2 or 3 CWRS. If it drops under 10% protein then it can't be a 1CWRS, otherwise protein has nothing to do with grade, just end use specs. In all the talks I've had with Aussies and UK grain producers I've never got the feeling that your systems rely heavily on subjective factors like ours does. You talk about mildew on grains to a UK guy and all they know is powdery mildew on the leaves of the plant, they have no clue about it on the grain and causing a downgrade. One day I'd like to talk to people in person and view their grains while showing ours. Maybe that way it would be easier to understand than through text.

It's an interesting idea to have legislation that requires the elevators to say what they have in store and the averages.... Here it is almost treated like top secret information.

[malleefarmer]

Cant remember exact timeline but we had "partial deregualtion" for about 5 to 7 years domestically and permits were issued for exports but few were granted such was AWB stranglehold.

Whilst this was going on farm groups pollies grain expoters farmers everyone tried to make sure that when full deregualtion happened its was kind of orderly.

No guarantee it was gonna happen but when everyone was satisfied that protocols etc were in place it went through parliment resoundingly.

Maybe you guys jumped in too soon and should have waited a extra year or two at times seems like a dogs breakfast over there.