Bumper grain crop bodes well for GrainCorp’s coffers this harvest

GrainCorp is expecting a bumper crop this harvest. But how does it compare with past seasons?

GrainCorp has already this year exceeded the level of receivals in both of the past two harvests.

GRAIN bulk handler GrainCorp is shaping up to receive record crop deliveries into its network this harvest.

After two very poor years of grain receivals driven by drought in NSW and Queensland, GrainCorp was expecting deliveries to its network this harvest to rival the record 15 million tonnes taken in 2016-17 — the biggest winter harvest in Australia’s history.

That year, the winter grain crop across Victoria, NSW and Queensland topped 28.2 million tonnes.

This season, the Australian Bureau of Agricultural and Resource Economics and Sciences has forecast a winter crop of 24.4 million tonnes for the east coast states and a summer crop of 3.1 million tonnes.

online artwork nov 18 graincorp

About a third to a half of the winter and summer crops is normally delivered into the GrainCorp storage network.

The bulk handler traditionally draws a significant proportion of its revenue from storage and handling fees, which flows on to healthy profits.

Earnings before interest, taxation, depreciation and amortisation from the grain division in 2016-17 topped $206 million, compared with just $68 million the following season when receivals were 6.8 million tonnes.

Already this season, GrainCorp has exceeded the level of receivals in both of the past two harvests.

GrainCorp managing director Robert Spurway said the harvest had begun in all three states and yields and quality of the grain were good.

“Right now, we’re into the harvest and seeing what’s happening,” Mr Spurway said.

“We’re confident about the amount of grain coming into our network from what we see is a very significant crop on the east coast of Australia.

“”It’s very busy across the network in northern NSW and as the harvest moves further south into southern NSW and Victoria, we expect those trends to continue.

“Without second guessing the overall crop, we are focusing on making sure we are exceeding grower expectations and delivering what they expect so that we see strong volumes coming into our network.

“This is shaping up to be similar to the FY17 crop — a record crop, particularly across NSW.”

Mr Spurway said a larger crop was not the only factor which GrainCorp was hoping for strong receivals into its network.

He said the company had improved turnaround times at delivery and other commitments to grain growers, which had bode well for overall receivals.

Mr Spurway said recent rain had not affected the winter crop but had promoted good growing conditions for the summer sorghum crop which had just been planted.

MORE

INSURANCE PAYMENT HELPS GRAINCORP COFFERS

WHAT IS AFFECTING THE PRICE OF BARLEY?

RAIN GIVES CROP BOOST