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Drought hits GrainCorp's annual profit

Due to the extreme drought, Australian agribusiness GrainCorp's annual profit for fiscal 2007 has fallen 162.3%, and the company expects to make another loss this year.

The drought saw grain volumes plunge 79% to 2.3 million tonnes, from 10.8 million tonnes in 2005-06. Grain exports were also reduced by drought, with one million tonnes shipped compared with 5.3 million tonnes in the prior year.

GrainCorp managing director Tom Keene said grain prices had nearly doubled from a year ago and were anticipated to remain strong as demand outstripped supply. However tough seasonal conditions were expected to result in the company booking another loss this year.
The 2007-08 season would be similar to 2006-07, with forecast total receivals of three to four million tonnes.

Stocks of grain remained at record low levels, and the company was carrying 1.2 million to 1.3 million tonnes into fiscal 2008, compared with 4.9 million tonnes in the prior year.

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Source: www.news.com.au

 

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