GrainCorp is simplifying its business structure through the creation of a single Grains business unit from the existing Storage & Logistics and Marketing businesses.
GrainCorp Managing Director & CEO Mark Palmquist said the company had been speaking with many grain growers and buyers to get the clearest possible understanding of their requirements in the modern, competitive marketplace.
“Customer feedback has been clear: we need to make our customer experience more consistent, to reflect the steady evolution of their needs since deregulation,” Mr Palmquist said.
“The modern grower is sharply focused on marketing opportunities and maximising the value of their grain, while processors are becoming more demanding about the specific functional characteristics they require. This change will mean we are better able to strategically target and create value opportunities for our customers.”
Streamlining grains operations will deliver multiple benefits:
1. GrainCorp’s grower customer performance will improve and the company will be more competitive at the farm gate;
2. Moving to a single point of contact will make the company easier to do business with;
3. GrainCorp will be more competitive against its integrated global competitors; and
4. Open access to GrainCorp’s network will continue, including full freedom of choice for growers, exporters and domestic buyers using the network.
Mr Palmquist said the change was relatively simple and there would be no change or disruption to GrainCorp’s preparations or roles critical for the coming harvest.
Klaus Pamminger has agreed to take responsibility for running the combined business unit, and will be appointed Group General Manager, Grains, having served as Group General Manager, Marketing for the past five years. A new role, General Manager, Customer, reporting to Mr Pamminger has also been created. This role will have responsibility for delivering a more strategic approach and cohesive experience for our customers.
As a result of these changes, Group General Manager, Storage & Logistics, Neil Johns will leave GrainCorp after an extensive career with the company spanning three decades.
“Neil has played a significant role in making GrainCorp the diversified company it is today through his role in the acquisitions of the Malt and Oils businesses and through making significant improvements to our Australian operations. I thank him for his major contribution and join with all our staff in wishing him every success in the future,” Mr Palmquist said.
GrainCorp will continue to report Storage & Logistics and Marketing separately for its FY17 result