In this paper, the literature on the economics of grain distribution systems is reviewed. The emphasis of this review is on farm to port issues and largely excludes port and shipping issues. In the first part of the paper, the discussion centres on the historical institutional environment in Australia, which was heavily regulated. The second part of the paper highlights some of the issues relating to the pricing of central grain distribution services that continue to exist even in the more competitive environment which has emerged in the 1990's. The scope for future agricultural economics research in this area is discussed.