On-farm lupin storage pays in WA
Mr Kitto, together with his wife Tanya and parents Ian and Wendy, farms 8000 hectares of Casuarina sand plain country just 90 kilometres from the port of Geraldton.
Despite the proximity to the bulk storage system, Mr Kitto says the investment in five 1500t silos has delivered new marketing opportunities and saved on the storage and handling bills encountered in the bulk system.
The Grains Research and Development Corporation (GRDC) is encouraging more farmers to adopt best-practice on-farm grain storage techniques as a means of improving profitability in the sector.
Mr Kitto said the cost of using the bulk handling system was usually $30-$40/t, covering freight to port, warehousing, pooling costs, and storage and handling.
“Bringing our lupins out of the pool to sell to another buyer has its costs as well, but since 2005 we’ve been on average $45/t better off than what we could have achieved through the pool through lower costs and higher returns.”
That return on investment means the silos – worth $75,000 each – have quickly paid for themselves.
The Kittos’ 8000ha property is fully cropped, with 50 per cent to wheat and 50 per cent to lupins, alternating each year.
“However, we will grow canola on the odd occasion if we can plant early instead of some lupins. It acts as a disease break and allows us to use a different group of chemicals,” Mr Kitto said.
“We aim for average yields of 3t/ha for wheat, 2.5t/ha for lupins and 1.5t/ha for canola.”
Having received 200mm of rainfall over summer, plus a further 85mm in May, the current crop is well placed, although the arrival of timely finishing rains will be crucial
Source: GRDC
