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Inside Grain

Australians can't get grain out of the country

22 April 2021 - Jurphaas Lugtenburg

A shortage of truck drivers and train drivers is a major problem for grain exports, especially in Western Australia. The ports are fully booked to ship the record crop around the world, but traders are struggling to get their grain there. And that in a year with good prices and high demand for grain.

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The CBH cooperative - one of the largest grain exporters in Australia, with approximately 3.700 farmers affiliated - is falling further behind planned exports. While a freight normally takes 4 days to travel to a port, this has now increased to 10 days.

Large harvest causes problems
“Last season's large grain harvest is creating additional demand for transport across Australia,” CBH operations manager Ben Macnamara told the Financial Review. "Normally we can call on the help of drivers from the eastern states. But they have enough work at the moment. The problems are exacerbated by the strict corona measures. The borders between the states have already been closed several times and there is fear among drivers that they I won't be able to go home if that happens again."

The transportation problems lead to frustration among overseas customers. Australia hoped to gain market share again this year, especially in the Asian market. Russia, which has grown strongly in this market in recent years, lost share due to the export tax on grain that the country imposed earlier this year.

The problems caused by the driver shortage are not limited to grain transport. Slaughterhouses and mining companies also have great difficulty getting their products into the ports.

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