The way I see GNC. Industry productivity is 3.4%, ie over time grain production increases by 3.4% per annum. However GrainCorp is loosing tonnage to on farm storage and direct domestic end user supply chains ie Manildra. Therefore as a result GrainCorp receivable volume IMHO is in decline.
I full agree GNC is a storage and logistics operation, much of GNCs fixed infrastructure up country is on outdated rail spur lines and remains competitively disadvantaged to major Global commodity traders central large scale sites on main lines.
efficiency based on cost controls and well placed capital investment would allow GNC to grow its business, however I that is not what I observe on the ground.
GNC Price at posting:
$8.02 Sentiment: Hold Disclosure: Not Held
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