World Grain - January 2022 - 30

FEATURE: EMBRACING TECHNOLOGY FOR A SUSTAINABLE FUTURE
Our recent results show
our strong delivery on
diversification and clear
financial commitments on
how the financial results
will be driving over the
next three years.
Robert Spurway, GrainCorp CEO
said. " We can pay the $70 million comfortably and still
achieve very strong results. "
He added that the company achieved an 11% return
on invested capital in its most recent quarterly results
due to driving the assets harder.
Also, two years ago, GrainCorp negotiated new rail
contracts, transitioning from the take-or-pay provision
to those that are variable. Spurway said this gave the
company's rail partners an incentive to perform and
lower overall costs. .
While the company sold its malting operations,
Spurway said its processing businesses, like GrainCorp
Oils, were performing strongly, picking up new customers
and increasing volumes through its crushing assets
by 8%.
Spurway said among the company's employees there
was enthusiasm to drive the business into the future,
particularly those areas with the most potential.
" The company has a clear strategy and is setting itself
up for a brighter future, " Spurway said.
He said GrainCorp was committed to a $40 million
uplift on cycle earnings assisted by improvements on its
international operations such as its Canadian operation,
GrainsConnect.
And while grain will remain a core business, Spurway
said GrainCorp will look to increase its involvement
with non-grain bulk products like woodchips, mineral
sands and cement, when the company has spare capacity
to do so, such as during droughts.
" Our recent results show our strong delivery on diversification
and clear financial commitments on how
the financial results will be driving over the next three
years, " Spurway said, adding the company would seek
out new opportunities in areas of strength.
Among these opportunities are GrainCorp Feeds
Australia, its livestock feed and supplement business.
Within its product range is its investment in Future
Feeds that includes a supplement containing a seaweed
30
extract (asparagopsis) that reduces methane by 80%
when fed to livestock.
Commitment to sustainability
Spurway said he was excited about where GrainCorp
could take Future Feeds, and that it also fit within the
company's sustainability commitment.
" GrainCorp is committed to net-zero by 2050, "
Spurway said. " We view it as a huge opportunity not
only for us but for Australia and agriculture.
" GrainCorp has released its 2021 Sustainability
Report, which outlines our sustainability plans. We will
be making more announcements for even more ambitious
targets over the next two to three years to make
a difference. "
He said the report will set up the company for future
success while benefiting the world.
Reflecting on the 2021 harvest outlook, Spurway
said the company was expecting a bumper crop coming
into the network.
" ABARES estimates 26.5 million tonnes has been
received so far (as of November 2021), higher than this
time last year, which was a bumper crop, " Spurway
said. " Queensland is complete, with the other states
well underway with growers quickly harvesting to
make use of good conditions. "
Since the interview, however, significant rain has
fallen across central-western New South Wales causing
floods and some crop losses.
As he mentioned during his appearance in
the
AGIC 2021 CEO Panel, the company has invested in
an additional 1 million tonnes of storage as a sign of
GrainCorp's commitment to growers.
" We've also opened up flex sites of another halfmillion
tonnes of storage, so we can do our very best
to meet the needs of growers for a second big year in a
row, " Spurway said.
Referring to the 2020 harvest, Spurway said the
company had done an excellent job moving the bumper
crop and selling it both domestically and internationally,
with just under 8 million tonnes being exported.
Adding to this, Spurway said the company had 4.3
million tonnes of carry-in, which he said is great for
GrainCorp's customers.
As of late November, ABARES projected the total
2021 Australian winter grain harvest to reach 58.4 million
tonnes, which is 5% higher than last year's record
crop.
Chris Gillies is a freelance writer based in Sydney, Australia.
He may be reached at chris.gillies@jamtincopy.com.au.
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January 2022 / World Grain / World-Grain.com
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World Grain - January 2022

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