Ukraine expansion for GrainCorp

Ukraine expansion for GrainCorp


GrainCorp managing director Mark Palmquist flagged the company's Ukrainian expansion at the firm's recent half year results announcement.

GrainCorp managing director Mark Palmquist flagged the company's Ukrainian expansion at the firm's recent half year results announcement.

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GrainCorp is set to open an office in Ukraine.

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GRAINCORP, the largest grain-based business on the Australian Stock Exchange, has spread its geographic footprint further, opening a trading office in Ukraine.

A company spokesperson said the decision was consistent with GrainCorp’s strategy of diversifying its grain origination footprint.

Chief executive at GrainCorp Mark Palmquist foreshadowed the opening recently at the company’s half year results announcement, saying the deal would be official shortly.

The spokesperson said the Ukraine venture would initially be run as a  a relatively small, asset-light enterprise, saying it would involve a small trading team, but that the company was yet to invest in any supply chain assets.

GrainCorp has identified the Black Sea region as a critical source of grain.

“It has large and growing production, and improving yields as technology and processes evolve so it is important that GrainCorp becomes a participant in this region,” the spokesperson said.

Ukraine is among the world’s largest global grain producers and exports. Total crop production is expected to top 60 million tonnes this year.

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