World grain oversupply continues to hit agribusiness

Detailed summary

An Australian agribusiness and food-ingredients processor has announced the departure of its chief executive after reporting a fall in bottom line earnings.

A major agribusiness has reported a full-year loss and cut its dividend payout as a global oversupply of grain continues to hurt its bottom line.

GrainCorp, which has the largest grain storage, receiving, and logistics network on the east coast, made a net loss of $10.1 million in fiscal 2026.

It's a massive slump from the $39.9 million profit it made in the year before.

Chief executive Robert Spurway, who's standing down after almost seven years with Graincorp, said the global grain environment was challenging due to an oversupply driven by favourable growing conditions in key areas.

That's meant prices are lower than long-term averages, and Australian grain is competing with grain from all over the globe.

"We tightly managed costs, maintained a strong balance sheet and continued to invest in areas that diversify our earnings base and support future growth," he said on Thursday.

"GrainCorp has continued to demonstrate its ability to perform through changing market conditions."

But it did hit the middle of its underlying earnings guidance with a profit of $223 million, before interest, tax, depreciation and amortisation.

The underlying result for the year ended September 30 excluded business transformation costs of $26 million and $15 million from the sale of its GrainsConnect Canada business.

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