The Western Producer producer.com 10 Jun, 2021 10:45 am

Grain companies move away from focus on storage

Grain companies move away from focus on storage
American grain companies are likely to focus more on moving grain fast and less on storage in coming years, says a company manager in the heart of winter

American grain companies are likely to focus more on moving grain fast and less on storage in coming years, says a company manager in the heart of winter wheat country.Farmers have also been taking over their own trucking needs, another role that many grain companies have traditionally offered.United States grain companies are also likely to move further down the value-added chain, toward the consumer market.“You’re seeing a lot of the big grain companies right now wanting to be in the processing space, soybean processing, corn processing, things of that nature,” said Post.

While farmers and grain companies are investing lots of their own money in improving their own capacity for moving grain, there is still a vital role for the other parts of the transportation system to keep up with growing demands.“This has really changed our business dynamic on the grain-handling side,” said Post, who spoke as part of a panel during the Kansas City Federal Reserve Bank’s agricultural economy symposium.

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