Cargill announces sale of four GrainFlow sites across SA
In an announcement to SA grain growers, Cargill Australia, which took over GrainFlow’s storage and handling facilities in 2011, said it has sold off the state’s receival sites, as part of the company’s commitment to growing business in South Australia, Western Victoria and across Australia “more generally”.
“As part of our growth plan, Cargill is optimising how we manage and grow our export volumes from South Australia, including accessing Viterra’s network of 55 sites. As a result, we have agreed to sell to Viterra our assets in SA and the Dimboola site in Victoria, subject to regulatory approval. The agreement includes Crystal Brook, Maitland, Mallala & Pinnaroo
The company’s intention is to “double export volume and become one of the largest exporters from SA.”
Due to the regulatory timing, Cargill will be operating these sites for the 2024 – 2025 harvest. And according to Cargill, on completion of the transaction, Viterra is committed to retaining all sites and investing in them, including an initial $25 million in the first two years and $8 million per annum in subsequent years.
Viterra Chief Executive Officer ANZ, Philip Hughes said Viterra’s ability to maximise the capabilities of the GrainFlow sites would allow the company to provide customers economic benefits with reduced costs and increased ability to attract higher prices.
“By using the sites’ high speed rail and truck loading facilities to complement our existing network, we will bring more tonnes to port through the most efficient and cost effective route. This increase in supply chain velocity will enable us to meet the rising demand for high quality local grain in the first half of the year, assisting growers to achieve a premium for their grain by exporting more tonnes earlier in the season,” he said.
“Growers will also see a direct benefit with reduced freight rates due to the efficiencies we will gain.”
