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Factors and scenarios affecting a farmer’s grain harvest logistics

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  • Kingwell, Ross
  • Loxton, Ryan
  • Mardaneh, Elham

Abstract

This paper explores how changes in Australia’s grain industry supply chains are likely to impact on the nature and profitability of an Australian farmer’s grain harvest logistics. A simulation model is used to show how receival site rationalisation, cheaper on-farm storage, larger trucks, higher-yielding crops and new harvest technologies, separately and in combination, affect the nature and profitability of a farmer’s grain harvest logistics. Applying the model to a typical Australian grain farm shows that many of these changes unambiguously advantage the farm business, and often, the combination of these changes increases a farmer’s harvest profits by at least 10 per cent. For many farmers, the task of efficiently designing and managing harvest logistics will be an increasingly difficult yet important series of choices due to the range of storage options, grain pathways, crop portfolios and market opportunities that are arising. A farmer’s decisions about cost-effective on-farm storage and transport, and their judicious use, will be a key contributor to additional profit in future years.

Suggested Citation

  • Kingwell, Ross & Loxton, Ryan & Mardaneh, Elham, 2020. "Factors and scenarios affecting a farmer’s grain harvest logistics," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(2), April.
    • Handle: RePEc:ags:aareaj:338478
    DOI: 10.22004/ag.econ.338478
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    References listed on IDEAS

    as
    1. Kingwell, Ross S., 2011. "Managing complexity in modern farming," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), pages 1-23.
    2. Kingwell, Ross, 2017. "Changes in grain handling catchments in Australia: an historical perspective," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(3), July.
    3. McClintock, David N. & Ahmadi-Esfahani, Fredoun Z. & Johnston, Jim H., 1991. "A Simulation of the Grain Producers' Decision Problem at Harvest," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 59(03), pages 1-12, December.
    4. Thomas Reardon, 2015. "The hidden middle: the quiet revolution in the midstream of agrifood value chains in developing countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 31(1), pages 45-63.
    5. Ge, Houtian & Nolan, James & Gray, Richard & Goetz, Stephan & Han, Yicheol, 2016. "Supply chain complexity and risk mitigation – A hybrid optimization–simulation model," International Journal of Production Economics, Elsevier, vol. 179(C), pages 228-238.
    6. Bilgen, Bilge & Ozkarahan, Irem, 2007. "A mixed-integer linear programming model for bulk grain blending and shipping," International Journal of Production Economics, Elsevier, vol. 107(2), pages 555-571, June.
    7. Ross Kingwell, 2017. "Changes in grain handling catchments in Australia: an historical perspective," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(3), pages 443-461, July.
    8. Richard S. Gray & Ross Stephen Kingwell & Viktoriya Galushko & Katarzyna Bolek, 2017. "Intellectual Property Rights and Canadian Wheat Breeding for the 21st Century," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 65(4), pages 667-691, December.
    9. Houtian Ge & James Nolan & Richard Gray, 2015. "Identifying Strategies to Mitigate Handling Risks in the Canadian Grain Supply Chain," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(1), pages 101-128, March.
    10. Ross Kingwell, 2011. "Managing complexity in modern farming," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), pages 12-34, January.
    11. Commission, Productivity, 2010. "Wheat Export Marketing Arrangements," Inquiry Reports, Productivity Commission, Government of Australia, number 51.
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