Tasmanian based feed and grain trader, Tasmanian Stockfeed Services, has purchased the Devonport Silos for AUD$1 million from Australian agribusiness Ruralco.
The Devonport silos are based at the wharf at Devonport on the Island of Tasmania, and in total has a capacity of 80,000 tonnes of grain. The silos are stratecially located close to most Tasmanian grain growers and feed consumers, meaning they in an ideal location to supply their customers with product from the mainland.
Tasmanian Stockfeed Services trades 250,000 tonnes of grain annually, of which a third is shipping product from the mainland to Tasmania.
Owner of Tasmanian Stockfeed Services, Trevor Macleod says there are risks and bottlenecks with Tasmanian shipping that can be overcome by having the central grain store and feed mill.
"There are several risks for containerised grain for our business, with the volumes that we do," he said.
"We're looking at minimising those risks by having a buffer of grain in the silos, and not relying on daily shipments as much as we currently do.
"Also, there are inefficiencies in the current system of handling containers in the state.
"So we're looking to move away from that, by bringing containers onto the site, storing them in the silos and then delivering out larger loads of grain than we currently move around."
In addition to the acquisition of the silos, the company is also looking to build a new feed mill at the same site. The feed mill they are looking to construct will be 75,000 and 100,000 tonnes annualy and will use local ingredients.
Plans for the feed mill have already received Council approval, but the AUS$5 million needed for the project is still to be secured.
Macleod said "We'd like to see some of our growers growing some pulses and other grains that we're bringing across [Bass Strait] and the silos give us that ability to store and hopefully process with our feed mill.
"We can see that we can probably import replace up to $15 million worth of grain products that we're currently bringing across. So the returns there for local growers is significant that we can add to the state."
"Intensive livestock feeding is what is pushing our industry along at the moment. Particularly the dairy, as we go forward and that's where the strength is in our business."