UNPRECEDENTED demand for silo bags in the northern cropping zone has led the owner of the leading Australian importer of bagging equipment to ask those with baggers in southern regions to consider hiring or loaning the equipment for the northern harvest.
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Ian Metherall, Silo Bags International chief executive, said the wet spring and concern surrounding paddock access meant there was record demand from croppers in northern NSW.
“We have sold enough grain bags this year to store 2.5 million tonnes of grain and the demand is showing no sign of easing up.”
Mr Metherall said farmers were concerned about not being able to get grain out of the paddock.
“The conditions mean paddock access is going to be a big problem, there will be many paddocks where it is just not possible to get trucks in, so they are looking to use bags to store the grain instead.”
“Even road access to the bulk handling network will be an issue in places like north-west NSW.
He said there was a lack of baggers to meet demand.
“We are importing the machines as quickly as we can from Argentina, our primary source of the equipment, and also now from Brazil to try to get as many on the ground at harvest as we can, but we just won’t meet demand.”
To put it into context, he said he sold around 50 baggers in 2015, 100 so far this year, but would now have had the enquiries to sell a further 300-400 since the big wet hit the northern cropping zone.
With the lack of available bagging capacity leading into harvest in northern NSW in mind, Mr Metherall is looking to move any spare equipment from southern NSW and Victoria to the north before returning it prior to the southern harvest.
“We’ve got people who are really quite desperate, it is either put the grain in bags or on the ground, they can’t get to receival sites because the roads are cut.”
“I’m asking anyone with spare baggers they want to loan or hire out to get in touch with me so I can get them into the areas where they are needed.”
“This is a critical issue for guys in the north, they are telling me, that after two years of drought, without the grain bags it may be the last crop they plant.”
Mr Metherall said the heavy spring rainfall and the issues it has created had made an already busy year for his business into a record breaker.
“We have been very busy all through the year, but the first wave of demand was primarily related to the low grain prices and farmers looking to store grain until they saw a pick-up in the market.
“This second wave has very much been about weather.”
“There is also a real concern about a wet harvest, given the rain we have seen throughout the spring and the climate models, meaning time will be of the essence in terms of getting the crop off as quickly as possible.”
He said the demand had been mixed.
“Those that have used the bags before have bought as many as they can, while we are also getting enquiry from people who will be using the bags for the first time.”
Mr Metherall said in spite of the wet conditions, the bags would keep grain in good condition if used correctly.
“Ideally we’d have them stored somewhere with a bit of slope where the water can get away, but internationally we have seen the bags in water in places like India and Africa and the grain has been out-turned in perfect condition.”
He said one other point of concern may be the unseasonal ripening conditions, which may bring in harvests in different regions closer together.
“Normally the northern harvest would be nearing completion before the south really gets going, but it is very late in the north this year so the two may come in closer together, which will mean the bagging equipment is spread over a greater area at peak usage time.”
Mr Metherall urged anyone who could assist to contact him either on 0417 220 795, or via email at im@silobags.com
Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
