Silos at the GrainCorp depot in Wallendbeen, New South Wales Source: Supplied

GrainCorp (GNC) chief executive Mark Palmquist said he was hoping the company’s marketing business would help support the group, as the impact of El Nino threatens to dry up earnings over the coming year, following a sharp slide in profit over the last 12 months.

Net profit for the year through September dropped 36 per cent to $32.1 million, while on an underlying basis, GrainCorp’s full-year result was down 53 per cent to $44.5 million.

Mr Palmquist said the figures were in line with the downbeat guidance provided at the start of the month, which had prompted a 5 per cent slide in GrainCorp shares, while he warned the coming year would again be tough.

Revenues declined 0.2 per cent to $4.086 billion over the year, constrained by a much smaller eastern Australia crop, with the group’s processing arm contributing 85 per cent of the earnings.

“Our grains businesses faced a tougher year off the back of last harvest’s smaller crop, which resulted in lower throughput volumes for storage [and] logistics and severely restricted opportunities for GrainCorp marketing.”

Mr Palmquist said Victorian and New South Wales crops were likely to be hit this year by late rainfalls, while Queensland was in better shape. The company is also optimistic about crops in North America.

But he said the government needed to support more rail infrastructure projects in northern Australia.

“The infrastructure improvements up there should benefit the area. We’ll hopefully see some more initiatives going on in the rail side of things,” Mr Palmquist said.

“We’re waiting for the federal government to get more on the front foot and help us.”

Mr Palmquist said the change of government leadership to Malcolm Turnbull had been accompanied by a “very good business attitude”, and he said the company was optimistic it will be able to attract foreign investment.

“It’s an important part of the capital base -- not only that we’re going to need -- but also agriculture in general will need to improve its infrastructure,” he said. “It’s really about keeping Australia competitive in world markets.”

He warned the government against putting any restrictions on capital, saying it would create inefficiencies and could create under investment.

Former federal treasurer Joe Hockey introduced a bill that would require the Foreign Investment Review Board (FIRB) to screen agribusiness investments worth more than $55 million.

“It’s important that capital has the ability to find its way into agriculture in Australia,” Mr Palmquist said. “Improvements on infrastructure need to be made [and] its important that we have that channel open for us.”

A string of regulatory exemptions by the ACCC on several GrainCorp ports was also lauded by Mr Palmquist, who said the supply chain efficiencies will support GrainCorp’s marketing network and the whole business

“It’s a benefit for marketing and better for storage and logistics, and it’s a benefit to our growers,” he said.