Inquiry into the South Australian bulk grain export supply chain costs - final report

29 Jan 2019

The Treasurer has released the Commission’s final report on the Inquiry into the South Australian bulk grain export supply chain costs.

The Inquiry findings include:

  • The South Australian grain export supply chain can be broadly categorised into three segments: freight transport, port facilities, and storage and handling.
  • The Inquiry has focussed largely on the performance and behaviour of Viterra, given its position of strength within the grain export supply chain.
  • Based on the facts and evidence available to the Commission, at this time, the grain export supply chain is not demonstrably inefficient in terms of its costs, from both an overall and individual supply chain segment perspective. Further, while Viterra is presently earning returns (on average) towards the upper end of what might be expected for a firm with Viterra’s level of risk, those returns are not currently excessive. The extent to which this continues to hold true over time will be dependent on Viterra’s future actions as a provider of grain export supply chain services, given its position of strength within the supply chain.
 

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