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Graincorp Makes Changes to Strengthen its Receival Network

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GrainCorp Limited has announced a major initiative to strengthen its receival network and provide better service to grower and buyer customers. The Company will now operate around 250 sites along the Eastern States categorised into “Primary”, “Major” and “Custom” sites. Last year GrainCorp opened around 320 sites for receivals.

“Grain growers have shown a clear preference for making use of larger and faster sites. This reconfiguration is a response to grower driven market changes. The reduction and categorisation of silos will enable GrainCorp to focus its use of capital and resources much more effectively,” said Tom Keene, Managing Director of GrainCorp.

The construction of new competitor silos over the past few years has occurred to meet growers’ preference to deliver to larger full service silos over small silos. GrainCorp will continue to respond and is increasing the number of permanent site managers and focusing capital expenditure at the permanently manned “Primary” sites.

77 ‘Primary Sites’ will be permanently-staffed, and handle the majority of grain providing:

Continued extended harvest hours to receive grain

Extended hours for grain out loading to export rail

Domestic out loading on all business days.

148 ‘Major Sites’ will handle the variable grain crop. These silos will provide:

Extended harvest hours to receive grain if required

Rail out loading on business days

Domestic out loading on business days subject to minimum tonnes requirements.

27 ‘Custom Sites’ will be exclusively designated for particular grain commodities or specific domestic customers based on grower or buyer volume commitment.

The sites to cease operating currently account for around 4% of current grain receivals. This can be contrasted to the top 100 sites which receive over 70% of total receivals.

None of the sites to be removed from the network have permanent staff attached to them. GrainCorp is currently hiring new site managers to ensure the appropriate level of permanent service at all Primary sites.

“Our extensive silo network will continue to be spread right across all states and regions to ensure grain grower and buyer coverage across the grain belt. The Primary Sites provide high service levels being permanently manned, with substantial segregation capacity, and extended hours” he added.

All changes to the network will be in place prior to 2006 winter crop harvest. A thorough program of consultation will be undertaken with Local Silo Committees during April and May 2006.

For further information please contact:

Mario Falchoni – Corporate Relations Manager 02 9325 9132 or 0418 401 415

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