Marketers have struggled to come to terms with the growing amount of grain stored on-farm, with grain quality an issue, but in the deregulated environment, many growers prefer to store grain post-harvest to try and find a pricing premium above the harvest quote without incurring warehousing fees in the bulk system.

While other companies, such as GrainCorp, have spoken about a desire to increase their presence within the on-farm storage sector, through initiatives such as assistance with storage guidelines, the move by Elders Toepfer is one of the first signs marketers would embrace grain stored on-farm and not automatically prefer to source grain out of the bulk network.

The Elders Toepfer national on-farm storage accreditation system will be based on internationally recognised storage principles, with the company confident it could drive efficiencies in the supply chain by promoting on-farm grain as an option for marketers.

Elders Topefer Grain Managing Director, Mark Thiele, said: “This initiative is about easing the pressure on growers at harvest by helping them take greater control over the logistics and marketing of their grain.”

He said Elders Toepfer would introduce an accreditation program to set common processes and standards for the storage of grain on-farm, which in turn will stimulate confidence and credibility among supply chain participants.

“Australian grain growers have invested heavily in grain storage over the years and yet these facilities are often under-utilised."

One of the issues for farmers with stored grain is that it has not been recognized as inventory in terms of finance in the same way that grain in the bulk system has been.

Mr Thiele said: “Overall, the system we are introducing will benefit all points of the supply chain. It will reduce wastage and eliminate unnecessary costs incurred by growers and customers. We expect it to be a win-win situation all round.”