Graincorp: Company Overview

Founded in 1917 as a part of New South Wales Government's Department of Agriculture, named Grain Elevator Board, this company was then privatized in 1980 and changed its name to GrainCorp. This company has expanded so greatly for several years that it then decided to be publicly listed on the Australian Stock Exchange in 1998. Since then, GrainCorp were growing faster that now it is recognized as Australia‟s largest agribusiness and ASX‟s top 100 company, who operates an integrated business, including storage and logistics, marketing, malt, and oils. While its main pride is still become the largest Eastern Australian gain storage and transport network, GrainCorp‟s other business operations are also developing significantly that it is known

Its significant role in Australian agricultural industry has allowed this company to gain integrity and trustworthiness in the eyes of the market.
Furthermore, GrainCorp‟s great operation is also supported by its large capital assets, including 7 bulk grain ports, which enable it to operate more efficiently and serve greater number of customers. Thus, applying economic of scale factor, GrainCorp is able to maximize its production at minimal costs so that competitive prices for its products and services can be offered. In addition, in order to satisfy its customers and retain its market share, GrainCorp also has the ability to differentiate its offers through grain-product customization to meet particular needs of its customers; thus, results in superior offerings. GrainCorp even provides its customers with various ranges of agricultural products, other than grain, including malt, oil and flour (GrainCorp, 2015). Its ability to satisfy the needs of its various types of customers will surely give this company an easier way to maintain closer relationship with its customers. On the other hand, in the perspective of GrainCorp‟s relationship with its suppliers which has been explained earlier, GrainCorp has greater bargaining

Within the last few years, demand for organic grain in Australia is very high; yet, it is not supported by the supply (Longhurst, 2015). Taking this into account, GrainCorp might grab the opportunity to satisfy those unfulfilled demand; thus, increasing its sales. On the other hand, looking on the international perspective, GrainCorp has a big opportunity to enlarge its export business, especially in Asia, due to the doubled demand for agricultural products in Asia, started in 2007 and expected to continue until 2050 (Bryant, 2013). Moreover, expansion of export activities are also supported by the establishment of new code in September 2014 over Australian grain exports terminals, which eliminates some redundancies in the regulation. Therefore, the burdens of port terminal service provider are reduced while the efficiencies of their services are enhanced (Holman Fenwick Willan,