Australian GrainCorp’s Oct-Mar grain exports triple on year to 3.6 mil mt

15.05.2017

GrainCorp, the largest grain seller in eastern Australia, said its grain exports tripled to 3.6 million mt over October 2016-March 2017 from the same period a year earlier due to a record harvest in Australia.

The surge in exports boosted its underlying profit for the period to A$100 million ($73.82 million) from A$32 million a year earlier.

“GrainCorp’s strong first half performance benefited from the large Australian grain harvest and higher export volumes, combined with our intense focus on improving network efficiency and managing costs,” GrainCorp Managing Director and CEO Mark Palmquist said in a statement.

Australia’s grain crop for the full October 2016-September 2017 marketing season has already hit a record 63.09 million mt, up 45.42% year on year. The crop includes wheat, barley, sorghum, canola and chickpeas.

About 28.2 million mt of the total was produced in eastern Australia, surging from 18.6 million mt a year earlier.

The bumper eastern Australian crop resulted in a surge in grain receivals and a bulk grain exports.

Receivals per site have averaged 70,000 mt from 160 operated silos during the current harvest season, surging from 40,000 mt across 180 silos last year, reflecting the higher efficiency achieved this year.

The total grain received by GrainCorp over October-March was 13.3 million mt, up 66.25% from the year before.

The total includes all grain received up country, plus grain received at port ex-farm and from other bulk handlers. Despite the strong result, Palmquist said the sector was still facing challenges.

“Following harvest, our grains businesses and the broader industry are contending with significant supply chain disruptions due to an extended industrial dispute affecting our Victorian rail provider and earlier bad weather,” he said.

“Nonetheless, it is pleasing to see a stronger result from GrainCorp Marketing, which has also benefited from increased exports from the east coast and Western Australia.”

GrainCorp has accounted for almost 10% of Australia’s total wheat exports in past seasons, sources said.

Australian wheat exports totaled 16 million mt in the 2015-2016 wheat market year (October-September), and the world’s fourth largest exporter is forecast to export 24 million mt of wheat in 2017-2018 market year.


hellenicshippingnews

Readers choice: TOP-5 articles of the month by UkrAgroConsult