WITH fast moving markets anticipated over the harvest period, farmers are exploring all marketing avenues, and the online trading house Clear Grain Exchange hopes to increase its market share again.
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The business was set up just before the 2008 harvest, and now, leading into its third harvest, is looking to continue to grow in terms of tonnes traded.
Clear works by offering buyers and sellers of grain (wheat, barley, canola and sorghum) an online exchange platform to transact business.
Officials from the business say that features such as the automatic contract generation, easy administration and the fast payment settlement are the keys in attracting growers.
The business has grown steadily in its first two seasons, with nearly 4000 growers holding active Clear accounts, and 110 registered buyers.
There has been over 310,000 tonnes of grain traded via the system.
One family farm using the system is the Rileys at Charlton in northern Victoria.
Clinton Riley said the family decided to use the exchange last season, primarily due to the control they then had over their marketing.
“Clear worked really well for us in 2009. We like to have control of our grain and Clear certainly provides that. Growers today have to take control. No longer can they sit back and rely on others,” he said.
He said he liked the fact that the grower stayed in control over the pricing direction.
“You can set a price that works for you.”
Another factor that has been a positive has been the ability to negotiate prices.
“Clear has put us in contact with buyers and we have been able to discuss prices over the phone and work something out.”
Mr Riley said he primarily marketed the warehoused grain in parcels of around 500 tonnes, which attracted larger buyers, but said there was scope to move smaller amounts, down to a truckload, which could appeal to end-users only wanting short-term cover.
He said the family decided to give Clear a go after finding grain warehoused with GrainCorp was able to be marketed with Clear.
“We thought it was worth trying, and its certainly been good so far.”
“In 2009, 100 percent of our grain that was warehoused with GrainCorp was traded on Clear, and we are definitely planning on trading with Clear again.”
Clear operates across Australia, utilising storage facilities from bulk handlers GrainCorp (on the east coast), Viterra (South Australia), and CBH (Western Australia).
