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East coast grains producers are issuing warnings there needs to be more investment in transport and processing infrastructure in order to keep the industry buoyant.
Hunter producers are hopeful the construction of a new grain terminal in Newcastle due to open at the end of this year is a sign of things to come.
Grains analyst Mark Martin says Australian producers are facing real pressure from overseas producers.
He points to countries such as Russia and the United States as being a real threat to Australia's market, saying each are able to ship grain at a third of the cost locally.
He says efficiency problems are one of the primary issues facing the industry.
"Just an example here is that east coast growers pay an additional $20 a tonne to load grain on to boats than their counterparts in Western Australia do, and it's all to do with efficiency," he said.
"We're hoping that new facilities, such as the new one that will be finished at the end of the year in Newcastle, will lead to lower freight costs."
Mr Martin also warns that other sectors are putting cost pressures on the industry.
"We've got coal being moved on rail at a similar price, but that coal is forcing our grain off the rail because of the inefficient practices that we've got with moving our grain, so it just adds to it," he said.
"The challenge there is that it's even harder to move our grain from up country to our port, let alone at an efficient cost."
This article first appeared on www.abc.net.au
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