Commodity Ag Leads the Way with Innovative Export Solutions
A significant milestone in grain exporting is unfolding this week in Albany, Western Australia. Commodity Ag, a business owned by the Richardson family, is leading this new era by loading a cargo of 23,000 tonnes of wheat destined for Surabaya, Indonesia. This cargo, facilitated by a leased mobile ship loader, marks a pivotal moment for the region’s agricultural sector.
In March 2023, Commodity Ag applied for an export license from the Australian Competition and Consumer Commission, outlining plans to export approximately 50,000 tonnes of grain monthly from the Port of Albany. Alan Richardson, managing director of Commodity Ag, highlighted the facility’s role in enhancing capacity for traditional crops like wheat, barley, and canola, as well as supporting emerging crops such as faba beans, lentils, and chickpeas.
“This facility not only enhances our capacity to handle traditional crops but also supports the expansion of new and emerging crops that desperately need a bulk export pathway to continue expanding in Western Australia,” said Richardson.
Expanding Export Capacity
The opening of Commodity Ag’s grain-exporting facility is the first in Western Australia since Bunge’s Bunbury terminal a decade ago. This new facility complements the existing capacity at CBH Group’s terminal in Albany. The Eastgate, currently docked at Albany, is preparing to transport wheat grown on Commodity Ag’s farms to Surabaya.
Commodity Ag, a fifth-generation family farming business based in Gnowangerup in WA’s Great Southern region, has diversified its operations to include road transport, cattle backgrounding, and the fabrication of Duraquip grain trailers. With 21,300 hectares under cultivation across 13 properties, the company produces around 59,000 tonnes of various crops annually, including wheat, barley, canola, oats, oaten hay, and lupins, for both domestic and international markets.
Future Prospects
All the wheat in the current cargo was produced by Commodity Ag, but the company plans to expand its operations to include grain from other growers. This strategy aims to enhance supply chain traceability and reliability, thereby increasing market access for regional farmers.
“We are excited about the opportunities our new grain loader brings to growers in Western Australia,” Richardson stated.
In late 2022, Commodity Ag acquired a 20,000-tonne capacity grain cleaning and storage facility located 8km north of Albany. This facility serves as an ideal staging point for grain transported by road to the export berth.
A New Pathway for Growers and Traders
Commodity Ag sold the current wheat cargo on a Free on Board (FOB) basis to Tasman Agri, in collaboration with Indian firm JSW. The company aims to provide services to both growers seeking alternative export pathways and traders looking to accumulate for FOB or Cost and Freight (C&F) sales.
CBH Group, part of Australia’s largest cooperative, dominates Western Australia’s grain-exporting capacity with terminals in Geraldton, Kwinana, Esperance, and Albany. Commodity Ag’s facility offers a new option for growers and traders, particularly suited to smaller handymax vessels.
While business for new-crop shipments is yet to be finalized, faba beans are expected to be among Commodity Ag’s cargoes once the 2024-25 harvest begins. The deployment of mobile ship loaders in other Australian ports has significantly boosted grain-exporting capacity, proving particularly valuable for pulse shipments.
