GrainCorp Limited is an Australian agribusiness and food-ingredients processing company listed on the Australian Securities Exchange. The company's core business is the receiving and storage of grain and related commodities. It also provides logistics and markets these commodities.
The company was founded by the Government of New South Wales as a public sector agency, Government Grain Elevator (later the Grain Elevators Board), in 1917. It was formed to transport grain from local collection points located on railways throughout the grain-producing regions of New South Wales. It was later known as the Grain Handling Authority. It was privatised in 1992 with a majority of shares being transferred to grain growers, and listed on the Australian Securities Exchange in March 1998.NSW GrainCorp goes up for sale Canberra Times 12 February 1991 page 11Graincorp press release re ASX official listing GrainCorp 30 March 1998
GrainCorp's operations have subsequently extended into other Australian states by amalgamations with other grain handling operations. In July 2000 it merged with its Victorian equivalent, Vicgrain.Growers Approve Graincorp and VicGrain Merger GrainCorp 28 July 2000GrainCorp AGM Riverine Herald 26 February 2001 page 4 The company operates an extensive network of rail-linked storages across south-east Australia, as well as seven export terminals in Brisbane, Geelong, Gladstone, Mackay, Newcastle, Port Kembla and Portland.
In November 2009 GrainCorp expanded into North America through the purchase of the United Malt Holdings group of companies.How One Private Equity Firm Beat The Odds Bloomberg Businessweek 13 November 2009 In July 2011, GrainCorp agreed to buy maltster GermanMalt GmbH & Co, extending its reach into Europe.GrainCorp buys GermanMalt for $77m Sydney Morning Herald, 25 July 2011
Having purchased a 20% stake in the company, in 2013 Archer Daniels Midland launched a take over offer.ADM to Acquire GrainCorp Archer Daniels Midland 1 May 2013 Although cleared by the Australian Competition & Consumer Commission, the bid was disallowed by Federal Treasurer Joe Hockey, citing that it would not be in Australia's national interest.ACCC to not oppose Archer Daniels Midland acquisition of Graincorp Australian Competition & Consumer Commission 27 June 2013GrainCorp: Australia blocks takeover bid from ADM BBC News 29 November 2013
In May 2009, eighteen 48 class locomotives and 180 grain wagons were transferred by the Government of New South Wales at no cost. They continued to be operated by Pacific National.GrainCorp Welcomes State Government Broadacre Train Decision GrainCorp 29 May 2009First Refurbished 48 class locomotive enters service for GrainCorp Australian Railways Illustrated issue 2 June 2010 page 8 In Queensland, services are contracted out to Watco Australia.Watco expands Australian rail freight operations International Railway Journal 3 July 2018
In 2015 GrainCorp formed a strategic joint venture with major Japanese agricultural cooperative, Zen-Noh Grain Corporation, to create GrainsConnect Canada – a highly-efficient grain supply chain that is connecting the growers of Western Canada to the world.
Demerger of United Malt Group In early 2020, GrainCorp announced that the demerger of its malt business and created the United Malt Group.GrainCorp's Chairman's Address to shareholders 11/02/2021GrainCorp-United Malt split means $50m in costs and risks Farmonline National 25 February 2020United Malt Group Demerger Scheme has become Effective GrainCorp 23 March 2020 The new company was also listed on the ASX on the 2nd of April 2020.Announcement of UMG being traded publicly on the ASX 1/04/2021
Controversies In October 2019 GrainCorp was found guilty by the New South Wales Environment Protection Authority of breaches of fumigation protocol at its Port Kembla facility. The breaches were self-reported in February 2018 and GrainCorp was fined $40,200.GrainCorp cops fine for fumigation breaches The Land 7 October 2019
References