The move is part of a restructure under which GrainCorp will operate only 252 silos for the 2006-07 harvest, compared with about 320 in 2005/06.

In a statement to the media, Grain Corp said the consolidation was to strengthen its network and provide better service to the grower and buyer customers.

The company will now operate around 250 sites along the eastern states, categorising them into primary, major and custom.

Its explanation was that sites to close currently account for only four per cent of current grain receivals - contrasted to the top 100 sites that receive 70 per cent of total receivals.

Other GrainCorp sites, including Cowra, Noonbinna, Canowindra, Greenethorpe and Trajere have been protected, classified under GrainCorp's latest silo maps as major, or in Noonbinna's case, primary.

Koorawatha Silo Committee Chairman Robert Trengove said the closure was sad, but inevitable.

"It was just economy, that's what the problem was," Mr Trengove said.

"Our capacity is only 15,000 and we can only take two grades. And there are too many alternatives for local growers, with private traders in Cowra, the [nearby] poultry farm and on farm storage."

Mr Trengove and 15 others were informed by GrainCorp of its intention at a recent meeting in Koorawatha, where they were told emphatically of the silo's fate, not matter whether they could fill it to capacity – something not done in five or more years.

"It's a shame, because it's a good facility. It's now virtually mothballed. The ironical part is that the grain now to be taken to Noonbinna will come past the silo by train."

Chairman of the Greenethorpe Rail Action Committee Michael Bryant described the Koorawatha decision as bitter sweet.

"Bitter in that growers in a 10 kilometre radius will be affected and will have to re-think their whole marketing strategies. However, there hasn't been a great deal of grain going to Koorawatha. It's been quite expensive to cart and the grain facilities are not efficient.