Grain Dams: What Are They And Why Are They Important

Grain Dams are perfect for storing and preserving grain and other dry agricultural harvested yields such as mielies, sunflower seeds, and pumpkin seeds. Most storage dams can hold up to 150 tonnes of grain.

This article will dive into the South African history of grain storage and grain storage solutions like grain dams, and answer the question of why grain dams are a good investment for every farmer, big or small.

The History of Grain Dams in South Africa

Throughout history, grain storage has played an important role in agricultural societies. Grain trading for other goods and services was one of the earliest known exchanges, and it was crucial in the development of urbanism and the formation of provinces.

After the South African grain industry was deregulated and the grain marketing committees were abolished in 1996, anyone or any institution could obtain, store, purchase, and distribute grain. This was the beginning of alternative grain storage solutions. These alternative grain storage systems are less expensive, have opened up the possibilities of grain storage to various stakeholders, and provide producers with a quick turnaround to get their yield off the land. Alternative grain storage solutions also provide better marketing opportunities that were previously unavailable. This is when the production of grain dams hit the agricultural community.

Why Grain Dams Are a Good Investment

Other than being an efficient storage solution, grain dams also hold several economical and financial benefits. Consider the following reason why grain dams are a good investment for any mega or small grain farming corporations.

Grain is One of The Biggest GDP Contributors

Grain management and storage remains one of the most important contributors to agricultural GDP (Gross Domestic Product) to date. According to a customer satisfaction survey, grain storage as a business unit received the highest level of satisfaction from respondents.

According to the findings of the survey, the majority of respondents were grain farmers with long-standing relationships with agri-businesses. This is not a business sector that is going to decline in the next few years and therefore a sound investment.

A Massive Need and Market for Grain

Grain is the most important food source throughout most regions of the world, so grain storage is critical to the economy, especially for developing countries. The grain market and its demand is relatively stable from season to season because people's consumption does not vary significantly every year. Grain market supply, however, can vary seasonally depending on climatic conditions and this is where storage solutions like grain dams come in handy. Grain dam storage allows farmers to make all extra grains from previous seasons and store them for release back into the market in less yield rich seasons.

Because grain production is seasonal, with only one harvest annually, quality grain storage systems are required to store grain for longer periods in order to meet the demand of a rising population. Grain demand is inelastic, which means that fluctuations in grain prices have almost no effect on the amount of grain purchased by consumers. Therefore, grain storage like grain dams is important because it helps to even out fluctuations in grain market supply.

Benefits of Grain Dams

Grain dam storage on your farm has numerous benefits. Farmers now have the option of keeping the grain and waiting for the market price to rise before selling. Farmers also save money on the storage expenses associated with storing grain in the co-op silo. Installing your grain dam on your farm is a long-term investment that will pay off in the long run. More benefits include:

• Asset protection
• Increased profits
• Minimum skilled labour requirements to set up and maintain the grain dam

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