Federal Member for Hume Angus Taylor has welcomed Graincorp’s announced restructure of storage and logistics, but warns farmers need a seat at the table in negotiating fair terms and conditions for access to the infrastructure.

“A $200 million investment in rail loading capacity is being marketed as one of the biggest single capital investments in Graincorp’s history. But buyer beware. This is only one part of the picture and farmers need to have a seat at the table in negotiating access agreements that pass on real benefits to producers.

“In negotiating access agreements to date, farmers have effectively been shut out,” Mr Taylor said.

“There is much to be gained from a new structure. There are improvements in efficiency and reliability and there will be less managerial duplication. By streamlining storage sites and streamlining export processes, there will be lower transport rates unlocking greater returns for growers. The idea is good, but it’s how benefits flow through to farmers, including those who have lost their local silos.

“The concern among growers is whether this is just another step in strengthening Graincorp’s market position – or is a genuine attempt to reshape the supply chain and ensure that producers reap benefits.”

Mr Taylor said a draft code of conduct released by the Federal Government into the accessibility of ports for export was an opportunity to ensure that producers see benefits from restructuring.

 “When ADM (Archer Daniels Midland) was planning the buyout of Graincorp last year, it was only the beginning of the debate on securing better returns for growers. This is the next stage. If we can get our cost structure right, there’s enormous potential for our grain into Asian markets. Right now, our costs are too high - twice as high as they should be, and farmers don’t have a seat at the table in the negotiations.”