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Grain handler GrainCorp has reported a record profit for the last financial year but it comes as NSW farmers lose crops to heavy rain and flooding.
Key points:
- Floods in NSW are having an enormous impact on crops
- A NSW Farmers Association survey shows a large reduction in the area sown
- GrainCorp has announced a record profit for last financial year
Results from a NSW Farmers Association survey showed more than two-thirds of farmers said they were experiencing flooding for the second year in a row and many were struggling to recover from years of drought.
It showed three quarters of farmers had planted less than half their usual winter crop due to the wet weather.
Association president Xavier Martin said flooding had an enormous impact on paddocks and roads, which would affect many farm businesses.
"Many farmers lost considerable equity during the drought years and the mouse plague, and while we had one 'Goldilocks' year in 2020 for most valleys and made a profit and started to repay those debts, for many farmers 2021 and 2022 are turning into another year of big losses," Mr Martin said.
Record profit for GrainCorp
Meanwhile, the biggest grain handler on the east coast, GrainCorp, has announced a record profit.
GrainCorp chief executive Robert Spurway said earnings were up more than 100 per cent on last year.
"We've benefited from the second consecutive bumper crop on the east coast, in a year of many challenges for others," Mr Spurway said.
The amount of grain handled increased from 34.4 million tonnes last financial year to 41.1 million tonnes this year.
The company said demand for Australian grain had continued to be strong and the company's fats and oils businesses performed well due to high global demand for renewable fuel feedstock, including used cooking oil.
GrainCorp announced a final dividend of 30 cents per share, leaving the company with a "strong balance sheet", according to Mr Spurway, with $177 million in cash on the books.
Mr Spurway said the outlook for the current season was not so good, with the floods in many parts of the east coast delaying harvest by several weeks.
"We expect the flooding to impact on both yield and quality in parts of eastern Australia and we're certainly seeing a higher level of feed grain receivals," he said.
He acknowledged the impact of the flooding on growers and on his own staff who had been helping flood-affected communities to clean up.
"Our teams are working hard to support growers any way we can," he said.
Farmers worried about harvest
Forbes farmer Gavin Tom said his parent's house was flooded in the past few days and he was struggling to look after his sheep in the wet conditions.
He was not sure how he would get his crop to market.
"The roads are either closed or full of potholes so it's going to be an enormous task getting the grain into the sub terminals," he said.