SYDNEY, AUSTRALIA — Led by higher volumes and strong global demand for Australian commodities, GrainCorp achieved record-breaking net profits after taxes of A$380 million (US$257.6 million) on earnings of A$703 million (US$447 million) in fiscal year 2022.

In its annual report released Nov. 16, GrainCorp, a diversified global agribusiness based in Sydney, Australia, noted that it exported 9.2 million tonnes of grain in 2022, up from 7.9 million tonnes in 2021. The company also crushed a record 471,000 tonnes of oilseeds compared with 459,000 tonnes the previous year at its plants in Pinjarra and Numurkah.

“It was pleasing to see Australian grain playing a key role in meeting global demand after back-to-back bumper crops in Australia,” Peter Richards, chairman, GrainCorp, said in the company’s annual report. “GrainCorp’s teams have worked diligently, driving our supply chains to peak capacity to deliver essential food and feed to customers around the world.”

GrainCorp said global grain stocks have been challenged by weather conditions and the disruptions to the supply chain caused by Russia’s invasion of Ukraine in February, but demand for Australian grain has remained strong after two consecutive years of record winter production.

The Agribusiness segment reported earnings of A$624 million, up from A$275 million in 2021, driven by East Coast Australia (ECA), International and Feeds, Fats and Oils (FFO) businesses. 

“This was an exceptional performance, demonstrating the significant value of our infrastructure assets and our ability to move grain to global markets, meeting the high demand for Australian grain and generating strong supply chain margins,” said Robert Spurway, managing director and chief executive officer of GrainCorp.

The oilseeds business delivered a significant increase in earnings, with favorable crush margins and strong global demand for vegetable oils. Processing reported A$127 million, up from A$78 million last year. GrainCorp’s used cooking oil business Auscol delivered results, with high demand in biofuels markets. 

The feeds business was marginally down on last year, with favorable weather and pasture conditions resulting in increased availability of alternative feed sources, the company said.

GrainCorp also completed construction and commissioning of the Fraser Grains Terminal in Vancouver, British Columbia, Canada, through its GrainsConnect Canada (GCC) joint venture with Parrish & Heimbecker, which supports the company’s ability to provide year-round supply to customers in Asia.

Origination from Canada was adversely impacted by drought in FY22. Conditions are expected to normalize with the Fraser Grain Terminal commissioned and GrainCorp’s Western Canada supply chain in full operation.

GrainCorp noted it has a high level of grain inventory in its network and a strong export program, which it expects to continue throughout fiscal 2023. The exceptionally strong margins achieved in the first half of fiscal year 2022 moderated in the second half as supply from other grain-producing regions improved, but demand for Australian grain remains strong, the company said.

Oilseed crush margins are expected to remain favorable, and the company said it is well positioned to operate its crushing facilities at high utilization and continue to maximize this opportunity.