Ceylon Grain Elevators

Ceylon Grain Elevators PLC is a Sri Lankan company whose principal activities are associated with animal-feed manufacturing, poultry production, poultry farming and processed chicken. The business was established in 1982 through an agreement between the Government of Sri Lanka and Prima Limited of Singapore. Its creation connected Sri Lanka’s developing agricultural and food-processing sector with the Singaporean Prima Group, which became the company’s controlling shareholder and broader corporate parent. The company entered the public market in 1984 when it was listed on the Colombo Stock Exchange. During the 1980s and 1990s, it expanded beyond feed production into poultry breeding and farming. Its Breeder Farm Project in Kosgama began producing day-old chicks in 1987. In 1992, the company acquired Three Acre Farms, a poultry-related business that later became an important subsidiary. Additional farms in Bulathsinhala and Halwathura were acquired in 1996. These moves helped create an integrated operating model covering feed, breeding, farming and poultry products. Ceylon Grain Elevators was a leading participant in Sri Lanka’s animal-feed and chick-production markets during the 1990s. The company reportedly held approximately 80 percent of the relevant market in 1993, but its share later declined as competitors such as Gold Coin Feed Mills and a Bairaha-Cargills joint operation expanded. The company’s position nevertheless remained significant because poultry production depends on reliable access to feed, breeding stock and farm infrastructure. Its corporate activities later broadened through investments and related-party transactions. In 2006, Ceylon Grain Elevators invested in Prima Management Services, an associated company providing information-technology and related solutions. In 2017, it acquired a poultry-processing plant for LKR 272 million from Ceylon Agro-Industries, a related company within the same corporate network. The transaction strengthened the company’s position in downstream poultry processing. Ceylon Grain Elevators is part of the Prima Group’s Sri Lankan business ecosystem. Other group-linked entities mentioned in company reporting include Prima Ceylon, Prima Ceylon Machinery, Ceylon Agro-Industries, Prima Land and Prima Management Services. Prima Ceylon, which represents the group’s major flour and food-related investment in Sri Lanka, was described as the country’s first foreign direct investment after the economic liberalization reforms of 1977. The company has also faced operational and financial pressure from macroeconomic conditions. During Sri Lanka’s economic crisis, depreciation of the Sri Lankan rupee increased costs and contributed to substantial losses. The closure of many small and medium-sized restaurants affected retail demand for processed chicken because those outlets represented a major sales channel. Conversely, the poultry sector benefited at times from supply-demand imbalances following the COVID-19 lockdown period, when demand initially fell and then recovered faster than expected, contributing to higher poultry prices. Ceylon Grain Elevators has experienced regulatory and governance controversies. Trading in its shares was suspended by the Colombo Stock Exchange in July 1998 in connection with the sale of poultry feed to local vendors. In 2012, the company agreed to pay the Government of Sri Lanka LKR 115 million under an out-of-court settlement. Sri Lanka Customs also imposed a LKR 1.17 billion fine alleging breaches of customs law; the dispute was subsequently settled after negotiations without the company admitting legal liability. The company remains a Sri Lankan listed corporate brand focused on the poultry and animal-feed value chain. Public reference material identifies it as part of Prima Limited’s controlled group and places it among the country’s larger listed companies by revenue, although detailed current operating and financial information is not provided in the supplied sources.

Ceylon Grain Elevators was incorporated in Sri Lanka in 1982 through an agreement between the Sri Lankan government and Prima Limited of Singapore. The venture formed part of the development of Sri Lanka’s agricultural and food-processing capacity and established a long-term connection between the company and the Singapore-based Prima Group. Prima Limited later became the controlling shareholder. The company entered the Colombo Stock Exchange in 1984. It expanded its operations during the following decade, moving from animal-feed manufacturing into poultry breeding and farming. Its Breeder Farm Project in Kosgama began producing day-old chicks in 1987. Three Acre Farms was acquired in 1992, while farms in Bulathsinhala and Halwathura were acquired in 1996. These acquisitions supported an integrated poultry model in which the company participated in feed production, chick supply and farming. Ceylon Grain Elevators reached a particularly strong competitive position in the early 1990s. It was reported to control approximately 80 percent of Sri Lanka’s feed and chick-production market in 1993 and became the largest company on the Colombo Stock Exchange by market capitalisation on 17 February of that year. Its dominance later weakened as Gold Coin Feed Mills and a Bairaha-Cargills joint operation entered or expanded in the market. By the late 1990s, those businesses were identified alongside Ceylon Grain Elevators as the principal participants in Sri Lankan animal-feed manufacturing. The company’s public-market history included regulatory controversy. Trading in its shares was suspended in July 1998 in relation to the sale of poultry feed to local vendors. The matter later resulted in an out-of-court settlement under which the company agreed to pay the Sri Lankan government LKR 115 million in 2012. Separately, Sri Lanka Customs imposed a LKR 1.17 billion fine alleging violations of customs law. Negotiations produced a settlement, and the company did not concede legal liability. Ceylon Grain Elevators continued to diversify its corporate activities in the 2000s. In 2006, it invested in Prima Management Services, an associated company focused on information-technology solutions. The company also remained connected to Three Acre Farms and other Prima-linked businesses. In 2015, Senak Weerasooria was appointed chairman of Ceylon Grain Elevators and Three Acre Farms. In 2017, the company acquired a poultry-processing plant for LKR 272 million from Ceylon Agro-Industries, a related company. This transaction extended its involvement further downstream into processed poultry. The Prima Group’s Sri Lankan network also included Prima Ceylon, Prima Ceylon Machinery, Prima Land and Prima Management Services. Prima Ceylon was described as the first foreign direct investment in Sri Lanka after the country’s 1977 economic liberalization and marked its fortieth anniversary in 2019. The company’s recent operating environment has been shaped by the COVID-19 pandemic and Sri Lanka’s economic crisis. Lockdowns initially reduced poultry demand, while the subsequent recovery occurred more quickly than anticipated and contributed to higher prices because of a supply-demand mismatch. During the economic crisis, depreciation of the Sri Lankan rupee increased costs and created substantial losses. The closure of small and medium-sized restaurants was particularly relevant to processed-chicken sales because those businesses represented a major portion of the company’s sales channel. Ceylon Grain Elevators is therefore best understood as an integrated Sri Lankan poultry and animal-feed corporate brand rather than solely as a grain-storage or commodity-handling business. Its activities span feed, breeding, farming and processing, and its ownership and strategic context remain closely linked to Prima Limited and the Prima Group.

• 2017

  Poultry-processing plant acquired

  [1]Ceylon Grain Elevatorsen.wikipedia.org

  A poultry-processing plant was acquired from related company Ceylon Agro-Industries for LKR 272 million.

• 2015

  Chairman appointed

  [1]Ceylon Grain Elevatorsen.wikipedia.org

  Senak Weerasooria became chairman of Ceylon Grain Elevators and Three Acre Farms.

• 2012

  Government and customs settlements

  [1]Ceylon Grain Elevatorsen.wikipedia.org

  The company agreed to an LKR 115 million government settlement and separately resolved a customs dispute after negotiations.

• 2006

  Investment in Prima Management Services

  [1]Ceylon Grain Elevatorsen.wikipedia.org

  The company invested in an associated information-technology services company.

• 1998

  Trading suspension

  [1]Ceylon Grain Elevatorsen.wikipedia.org

  Trading in the company’s shares was suspended over an issue involving poultry-feed sales to local vendors.

• 1996

  Additional poultry farms acquired

  [1]Ceylon Grain Elevatorsen.wikipedia.org

  Farms in Bulathsinhala and Halwathura were acquired.

• 1993

  Market-capitalisation peak

  [1]Ceylon Grain Elevatorsen.wikipedia.org

  The company became the largest Colombo-listed company by market capitalisation on 17 February and was reported to control about 80 percent of the relevant feed and chick-production market.

• 1992

  Three Acre Farms acquired

  [1]Ceylon Grain Elevatorsen.wikipedia.org

  The acquisition expanded the company’s poultry-farming and production network.

• 1987

  Kosgama breeder farm begins operations

  [1]Ceylon Grain Elevatorsen.wikipedia.org

  The Breeder Farm Project began producing day-old chicks.

• 1984

  Colombo Stock Exchange listing

  [1]Ceylon Grain Elevatorsen.wikipedia.org

  The company became a listed company on the Colombo Stock Exchange.

• 1982

  Company incorporated

  [1]Ceylon Grain Elevatorsen.wikipedia.org

  Ceylon Grain Elevators was established through an agreement between the Government of Sri Lanka and Prima Limited of Singapore.

An integrated Sri Lankan poultry and animal-feed company operating across feed manufacturing, breeding, farming and poultry processing, with strategic backing from Singapore-based Prima Limited.

• Animal nutrition

  Animal feed

  Animal-feed manufacturing is the company’s foundational activity. Its feed business supports poultry production and forms part of an integrated chain linking feed supply with breeding, farming and processed poultry. The company was one of the leading Sri Lankan feed manufacturers during the 1990s, although its market share later declined as new competitors entered.

• Poultry breeding · 1987

  Day-old chicks

  Day-old chicks are produced through the company’s breeder-farm operations. Production at the Kosgama Breeder Farm Project began in 1987, giving the company a direct role in supplying poultry producers and supporting its vertically integrated operating model.

• Agriculture · 1992

  Poultry farming

  The company’s poultry-farming activities were expanded through the acquisition of Three Acre Farms in 1992 and farms in Bulathsinhala and Halwathura in 1996. These assets helped connect feed and chick production with the raising of poultry for the Sri Lankan market.

• Poultry food products · 2017

  Processed chicken

  Processed chicken represents the downstream end of the company’s poultry value chain. The acquisition of a poultry-processing plant in 2017 increased its participation in processing and retail-oriented poultry sales. Demand for this business has been affected by restaurant closures and wider economic conditions.

• 2012

  Government settlement over poultry-feed matter

  The company agreed to pay the Government of Sri Lanka LKR 115 million under an out-of-court settlement.

  Source

• 2012

  Sri Lanka Customs dispute

  Sri Lanka Customs imposed a LKR 1.17 billion fine alleging customs-law violations. The dispute was settled after negotiations without the company conceding legal liability.

  Source

• 1998

  Colombo Stock Exchange trading suspension

  Trading in Ceylon Grain Elevators shares was suspended in July 1998 in connection with the sale of poultry feed to local vendors.

  Source

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• 2017

  Acquisition of poultry-processing plantM&A

  Background

  The company sought to strengthen its position in downstream poultry processing.

  Action taken

  It acquired a poultry-processing plant from related company Ceylon Agro-Industries for LKR 272 million.

  Aftermath

  The transaction expanded the company’s involvement in processed poultry and was carried out within the Prima-linked corporate network.

  Acquisition price. LKR 272 million (2017)

  Source

• 2006

  Investment in Prima Management ServicesStrategy

  Background

  The Prima Group was broadening its Sri Lankan activities beyond core food and agricultural operations.

  Action taken

  Ceylon Grain Elevators invested in associated company Prima Management Services, which provides information-technology solutions.

  Aftermath

  The investment connected the company with a wider group support and technology-services structure.

  Source

• 1992

  Acquisition of Three Acre FarmsM&A

  Background

  The company was expanding from feed production into a more integrated poultry business.

  Action taken

  Ceylon Grain Elevators acquired Three Acre Farms.

  Aftermath

  Three Acre Farms became a significant poultry-related subsidiary and later shared leadership with the parent company.

  Source

1. 1Ceylon Grain Elevatorsen.wikipedia.org