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What is shrink and when is it applied?
What is shrink and when is it applied?
Updated over a week ago

What is Shrink?

When grain is delivered to a site, the Site Operator typically removes a percentage by weight from the total tonnage of the delivery called Shrink.

Shrink accounts for the loss in weight of stored grain that occurs during the storage and handling process.

When is Shrink applied?

Shrink applies when tonnes are received into a site. In AgriDigital, when a buyer delivers to a site, shrink will be automatically deducted from the weights entered into the delivery form.

Grower warehoused tickets are unshrunk, which means the shrink factor will be deducted when the tonnes are transferred to the first buyer.

Buyer tonnes will not be shrunk again if they are transferred to another buyer at the same site.

Shrink rates are determined by the individual Site Operator and can vary between specific commodities and sites.

Shrink Calculations

For example
A site has a shrink rate of 0.007 /.993 on Barley.

A buyer sends grain to the site with the following (unshrunk) weights:

Gross weight: 42mt
Tare weight: 2mt
Net weight: 40mt (unshrunk)
Weight: 39.72 mt (shrunk)

The net weight of 40mt will then have shrink deducted to result in a total receival tonnage of 39.72mt (shrunk) for the buyer's inventory. (ie 40mt x .993 = 39.72mt) / (39.72mt /.993 =40mt)

💡Note: you must round up by 2 decimal places.

View our new season shrink rates below for Site Operators in AgriDigital per commodity, per site.

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