Grain Corp (GNC) Shares – Company Profile

GrainCorp Limited (GNC) is an agricultural company that mainly provides transport, storage and export services for wheat farmers. The shares have been listed on the ASX since it was demutalised in 1998.

GrainCorp was founded in 1916, and was originally part of the NSW Government’s Department of Agriculture.

GrainCorp led the development of Australia’s bulk grain handling system. The first bulk grain elevator was built at Peak Hill, NSW, in 1918, and Australia’s first bulk grain export terminal was located in Sydney and was commissioned in 1922.

In 1992 GrainCorp became one of the first Government organisations in Australia to be privatised, with the shares mostly sold to grain farmers, and in 1996 was the first Australian bulk handler to trade grain in the Australian domestic market.

GrainCorp was listed on the Australian Stock Exchange in 1998, and acquired Victorian based Vicgrain in 2000, Allied Mills in a joint venture with Cargill Australia in 2002 and Queensland based Grainco in 2003.

Going with the grain

The main focus of the company is the handling and storage of grain and other bulk commodities and as an agent for marketing organisations.

In addition, the company also handling of export grains and other bulk commodities through GrainCorp ports; marketing of grain, meals and other bulk commodities and the operation of grain pools.

Finally, it also provides road and rail transport services for bulk commodities; provision of farm input product, and flour milling and mixing services.

GNC operates in four business segments: storage and logistics, trading, ports, and other.

Moving into malt

On November 13, 2009, it acquired the United Malt Holdings Group [Canada Malting Company (Canada), Great Western Malting (USA), Bairds Malt (UK), and Barrett Burston Malting (Australia)].

With this acquisition, GrainCorp is now the fourth largest commercial malt producer in the world, with operations in Canada (Canada Malting Company), the United States (Great Western Malting), the United Kingdom (Bairds Malt) and Australia (Barrett Burston Malting).

GrainCorp’s 15 malt houses produce over 1 million tonnes of high quality and specialty malts per year for some of the world’s leading domestic and international brewers and distillers.