GRAINCORP, the largest grain-based business on the Australian Stock Exchange, has spread its geographic footprint further, opening a trading office in Ukraine.
A company spokesperson said the decision was consistent with GrainCorp’s strategy of diversifying its grain origination footprint.
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Chief executive at GrainCorp Mark Palmquist foreshadowed the opening recently at the company’s half year results announcement, saying the deal would be official shortly.
The spokesperson said the Ukraine venture would initially be run as a a relatively small, asset-light enterprise, saying it would involve a small trading team, but that the company was yet to invest in any supply chain assets.
GrainCorp has identified the Black Sea region as a critical source of grain.
“It has large and growing production, and improving yields as technology and processes evolve so it is important that GrainCorp becomes a participant in this region,” the spokesperson said.
Ukraine is among the world’s largest global grain producers and exports. Total crop production is expected to top 60 million tonnes this year.
Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
