Grain Co-Production (GCP) is an innovative investment opportunity that provides investors with access to the Australian soft commodity sector, one of Australia’s largest and most established industries.
AACL partners with existing professional farmers to grow wheat, barley and canola crops for investors and is the Project Manager and interface between investors and growers.
Through investing in GCP, investors (also known as ‘Growers’) become a wheat, barley and canola producer.
How Does The Project Work?
GCP is effectively an extension to the principals of share farming. Investors provide the funds to grow wheat, barley and canola crops and farmers provide the land, equipment, inputs and expertise.
The farmer plants, manages and harvests the crop whilst the investor owns the growing crop and harvested grain and shares the risks and rewards associated with the production and sale of the grain.
Farmers share in the upside returns with the investors each season and are provided with incentives to outperform agreed benchmarks.
AACL contracts crops in many different locations. Each investor’s investment units (known as CPUs) are spread across those various locations and the produce from each location is pooled each season to minimise the risk versus growing grain in one or a small number of locations.
Project Returns
This innovative product offers annual returns over the life of the Project. The term of the investment is for four seasons with each season commencing with planting (normally between May and June) and ending with harvest (normally between November and January) of each year.
Investors will plant four annual crops and will receive a return on their investment each year as the wheat, barley and canola is sold.
Marketing and Sale of the Wheat, Barley & Canola
Grain produced from the GCP Projects is managed by experienced grain marketers at AACL in partnership with the trading team at Glencore. AACL and Glencore work together to achieve the marketing objective of ensuring the best possible return to farmers and investors.
For more information, visit our Grain Marketing page.
