VITERRA’S proposed purchase of the Maitland AWB Grainflow site, along with two other facilities, has been reported to the Australian Competition and Consumer Commission by T-Ports.

The proposed acquisition of Grainflow sites at Maitland and Crystal Brook, and Cargill’s mobile shiploader at Port Adelaide, has caused backlash from T-Ports because it believes the move will give Viterra a grain-handling monopoly on Yorke Peninsula.

T-Ports chief executive Nathan Kent said a return to the Viterra monopoly would be bad for everyone from the growers to the communities on Yorke and Eyre Peninsulas.

“It represents an attempt by global mega companies to eliminate local competition, which will only drive prices down at the farmgate,” Mr Kent said.

“We will be urging the ACCC to push back on the Viterra monopoly and back competition instead, and we’re encouraging growers and regional communities to do the same.”

Viterra announced it planned to integrate the new facilities into its existing storage and handling networks, and implement fast rail to link from its inland sites to deep water ports.

Viterra chief executive David Mattiske said the acquisition would make the SA and Victorian supply chain more efficient, and provide opportunities for customers.

T-Ports is concerned the new sites will enable Viterra to incentivise rail freight away from T-Ports’ Wallaroo facility.

Central Yorke Peninsula grain producer Sam Johns said he was all for free enterprise, but he thought any reduction in competition was a negative for the industry. 

Mr Johns said it was refreshing when AWB originally came to Maitland, breaking the previous monopoly because the competition brought improvements to operating hours and levels of service.

“More recently, AWB have been shipping bulk grain themselves directly out of Port Adelaide, so it’s created a bit of pricing competition around shipping and transport costs, directly competing with Viterra,” Mr Johns said.

“This (Viterra’s proposed acquisition) has a potential to eliminate that competition in that space, so we would go back to Viterra having a complete monopoly on bulk grain shipment out of South Australia, which I don’t think is good for the industry.

“The only competition they would have, which has been very welcome in the last couple of years, has been T-Ports, so T-Ports would be on their own trying to compete against a global giant.” 

Grain Producers SA chief executive Brad Perry also expressed concerns about the proposal and said GPSA would make a submission to the ACCC. 

“GPSA has surveyed grain producers about their support or not for Viterra purchasing the Grainflow sites,” Mr Perry said.

“We’ve had a presentation from Viterra and Cargill, spoken to T-Ports and canvassed the views of grain marketers.

“Based on the feedback received, we’ll be putting forward a submission to the ACCC.”