An analysis of the economical feasibility of alternative grain storage methods

Abstract

The mass storage of grain has portrayed a pivotal role in agricultural communities throughout the ages. The trading of grain for other goods was some of the earliest recorded trade transactions and played a pivotal role in the development of specialised crafts, socio-economic distinctions, establishment of urbanism and the formation of states. In the first part of the study a literature study was conducted that consisted of a historical overview of the production and storage of grain. Emphasis was placed specifically on maize cultivation which are the largest cultivated grain seed in the world and plays a vital role in the protein requirements in diets to sustain food security. The literature study continues by discussing the history of the production and storage of grain commodities in South Africa and how the increase in grain production in South Africa and deregulation finally paved the way for alternative and more cost-effective grain storage solutions. The qualitative and quantitative study clearly indicated that producers and other role players in the market have a strong affiliation towards the use of alternative grain storage facilities. From the data analysis conducted as part of the empirical study participants clearly indicated that service delivery, cost savings and more flexible marketing options were the primary drivers that persuaded them to make use of alternative grain storage facilities. The study concludes by making recommendations towards agri-businesses, producers and other role players in the grain value chain to make alternative grain storage facilities even more attractive and sustainable in the future.