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GRAINCORP ISSUES GRAIN RECEIVAL AND EARNINGS UPDATE


GrainCorp has issued the following earnings update and grain receival range for the 2010 financial year.

Country network receivals year to date
6.3 million tonnes

Country network receival outlook
7 to 8.5 million tonnes

EBITDA outlook range (Includes equity accounted NPAT from 60% share of Allied Mills joint venture with Cargill Australia)
$180 - $210 million

Outlook for GrainCorp Malt contribution to Group EBITDA range (Range represents 10 months of earnings from 14th November 2009 to 30th September 2010)
$100 $120 million

Storage, Ports and Logistics

GrainCorp Managing Director Mr Mark Irwin said that drought conditions in Queensland and NSW had reduced grain receivals in those states, but that conditions in Victoria are better than they have been for the past three seasons. So far the harvest in Victoria, while being slowed by rain, has met our budget expectations. We have not seen a lot of evidence of quality downgrading in Victoria, despite the predictions that the recent rain would significantly downgrade crop quality and reduce receival tonnage. We are currently holding more than 900,000 T of export bookings at the Geelong and Portland elevators, and this is an encouraging sign for Victorian grain exports. Our summer crop receival estimate is 600,000 T which represents an average intake of sorghum for our network in Queensland and Northern NSW. The summer crop receival period usually extends from January to late July.

GrainCorp Malt

Mr Irwin, having just completed a 3 week tour of GrainCorp Malt assets in North America and the United Kingdom, noted that new GrainCorp staff in Canada, the United States and the United Kingdom are enthusiastic about being part of GrainCorp. I met a number of our long term customers and was impressed with GrainCorp Malts focus on customer service. I was also impressed with the condition of the malting assets and the ability of the malt houses to produce malt with specific quality characteristics for individual customers. The assets are well maintained, and the future maintenance and capital expenditure requirements of the business unit are in line with our due diligence findings. Mr Irwin also commented on the progress of the two major growth projects at Arbroath (Scotland) and Pinkenba (Brisbane). Construction of the new Arbroath malt house is complete and has commenced producing its second batch of malt. The first batch produced was of very good quality. The new malt house at Pinkenba is progressing well. Civil works are underway and the foundations for the steeps, germination vessels and the kilns are in place. The project is on budget and schedule. There are several important markets we are unable to fully supply with our current capacity. The new capacity at Arbroath and Pinkenba will allow us to meet this demand. Our assets will be running at around 95% capacity to meet our 14th November 2009 - 30th September 2010 projected malt sales volumes of between 920,000 to 950,000 T. Further guidance on GrainCorp earnings will be issued at the company annual general meeting, which will be held in Sydney, from 2.00 PM Wednesday 24th February 2010.