Swot Analysis Of Graincorp

Graincorp was formerly part of the New South Wales government’s Department of Agriculture. In 1916 Graincorp was established as a grain elevators board.
In the mid-1980’s grain elevator’s board had changed to a grain handing authority and when the passing of the NSW Grain Corporation Act, the company became the first Government organization named to be privatized in Australia .It had sales of $100million in 1992 and was named Graincorp. In 2009 after purchased of United Molt Holdings, Graincorp became known as Graincorp Malt.
Now Graincorp is an international company with 280 country elevators in Australia and they have a holding a capacity of 20 million tonnes. It is also operates seven export elevators and is serviced by 20 contracted trains.

(Strategy-and-vision)
Key objectives of Graincorp
Graincorp main strategy will be driven by following three corporate objectives.
Manage earnings through the cycle and pay consistent dividends
For the last financial year company directors have approved to pay total of 20 million dollars of fully franked final dividend and 39.7 million dollars of fully franked special dividend to the shareholders. For the record date of 7th December 2011 the company paid final dividend of 15 cents plus special dividend of 20 cents per share on 21 of December 2011.
Improve shareholders returns
Since the last five years shareholder returns gradually increasing for the year of 2011 basic earnings for the share of 86 cents.
Growth as an international agriculture business
Graincorp is an international agriculture business since the purchase of United Malt Holdings in 2009 and then the European company of German Shillmalz in 2011.
The company trades grain internationally in its own rights, with business operation in Australia, Europe, United Kingdom and the

Moreover, these multinational grain companies have established relationships with grain customers all around the world, and therefore have extensive global grain handling and trading capabilities. Graincorp have less market power of buying grain due to massive competition from well-establishedmultinational grain buyers and handlers such as Cargril, Viterra, Glencore and Toepfer. The grain market is now served by new multinational entrants such as Noble, Graviton and Willmar.
Bargaining power of customers
Customer’s power of the local and international grain industry is relatively strong due to competitive grain companies cooperate locally and internationally.
Graincorp has significant grain processing, marketing and handling plants in North America, Europe. Marketing offices in Singapore and Beijing, processing plants around the Australia. 50% of its total sales are made to customers outside of Australia. Graincorp local and international customer base subject same risks including credit and government legislative requirements of