Graincorp sign new contract to cut drought cash issues

Company News

by Rachael Jones

GrainCorp (ASX:GNC) has moved forward to manage the risk associated with the volatility of the eastern winter grain production by executing a 10 year agreement contract.

This contract will reduce cash flow volatility, particularly in periods of severe drought.

During the term, a fixed payment of $15 per tonne will be made for each tonne of actual east coast of Australia winter crop production in any given year which is below an agreed lower production threshold of 15.3 million tonnes.

Shares in GrainCorp (ASX:GNC) closed -0.77 per cent lower at $7.71 yesterday.

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.