Grain spilled out of two collapsed silos at Manildra’s Bomaderry site on the south coast of New South Wales near Nowra. Photo: FRNSW

AUSTRALIA’S largest grain user, Manildra Group, has reported a loss for the 2025 financial year ending June 30, largely due to the cost of cleaning up after the October 2024 silo collapse at its Bomaderry facility.

In documents lodged to the Australian Securities and Investments Commission and obtained by Grain Central, Manildra reported a total loss before income tax expenses of $83.41 million, compared to a profit of $204.4M in FY24.

The documents also reveal Manildra’s continuing exposure to the United States, as well as other key international markets, which remain strong despite the introduction of “reciprocal” tariffs in April last year.

In a note published next to the key financials, Manildra wrote that due to the October 2024 event at its largest manufacturing facility, the company “incurred additional costs through the remainder of the financial year which has significantly impacted the financial performance for the current year”.

“The site is expected to be fully operational in financial year 2026 with insurance settlements also expected to be finalised by financial year 2027,” the document said.

On 17 October 2024, two 1000-tonne silos collapsed at the Bomaderry facility, spilling grain into the Shoalhaven River.

The event prompted the evacuation of approximately 65 workers, with no injuries recorded.

Almost one year after the incident, Manildra Group provided an update published in its Shoalhaven Starches community newsletter spring 2025 edition.

“Construction has commenced on new grain silos at our Shoalhaven Starches site, with the first expected to be completed in December 2025 and the remaining three by February 2026,” the newsletter said.

“Together, the new silos will provide 3600t of storage capacity, supporting improved site logistics and grain intake flow.

“Once complete, the silos will enhance operational efficiency, streamline site movements, and provide secure storage capacity.”

Key financial results

Manildra’s sale of goods slipped in FY25 to $2.03 billion, down from $2.23B a year earlier.

The group’s cost of sales jumped slightly from $1.66B in FY24 to $1.68B in FY25.

The financial records detailed the aggregate compensation made to directors and key management personnel during FY25 of $13.2M, up from $11.28M in FY24.

As a 50pc owner of both companies, Manildra received a share in profits from Manildra Harwood Sugars and MSM Milling.

MSM Milling crushes canola at Manildra in central NSW, while Manildra Harwood Sugars’ principal activity is to procure, refine and distribute sugar to food and beverage manufacturers from its base is north-eastern NSW.

The group reported profits of $2.08M from MSM Milling, down from $6.37M in FY24, and $7.57M from its interest in Manildra Harwood Sugars, down from $9.21M in FY24.

The financial documents also detailed money owed, along with purchases from and sales to joint ventures.

During FY25, Manildra purchased $5.36M from MSM Milling, down slightly from the FY24 figure of $5.54M.

US sales drop

Australia remains Manildra’s largest market, accounting for $1.11B in sales, according to its financial documents, well ahead of the US as its second-largest market, which accounted for $622.9M in goods sold in FY25.

Its third, fourth, and fifth-largest markets respectively were The Philippines with $76.3M, Japan on $53.14M and New Zealand on $32.43M.

Despite global market volatility and the introduction of 10pc US tariffs in April 2025, the list remains unchanged from FY24.

Manildra’s total goods sold for FY24 was $2.29B with domestic consumers still taking more than half at $1.2B, followed by the US at $748.48M.

The Philippines ($73.4M), Japan ($68.05M) and New Zealand ($47.98M) rounded out the top five.

US sales fell by about 17pc, alongside declines across most major markets including Australia, but tariffs did not cause any significant disruption to trade flows or revenue from the company’s second-largest export destination.

Manildra Group USA turns 50

Manildra has a long history in the US, primarily as a producer and distributor of wheat gluten, starches and proteins.

In December 2024, Manildra Group USA celebrated its 50th anniversary after it was established in Kansas City in 1974 to market Australian wheat products in North America.

The company has a production facility in Hamburg, Iowa and another in Minneapolis, Minnesota.

According to ABARES Trade dashboard, the US is the largest market for Australian wheat gluten and second only to “other” for the starch categories; NSW, and presumably Manildra, accounts for the vast majority of these exports.

Wheat gluten exports from Australia. Source: ABARES Trade dashboard

ABARES data shows only small volumes of wheat gluten exports from other states in recent years, including shipments from Queensland to Papua New Guinea, South Australia to New Caledonia, Victoria to Malaysia, New Zealand, and Taiwan, and Western Australia to Japan.

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