Graincorp misses a growth opportunity GRAINCORP will have a tough time building the railways and ports needed to be a major regional player now that the federal government has rejected its takeover by US giant Archer Daniels Midland. The decision by Treasurer Joe Hockey to block ADM's $3.4 billion takeover of Australia's last listed grain handling company has also introduced a new element of doubt for big foreign companies seeking to invest in the country. Mr Hockey said the ADM acquisition would have been contrary to the national interest. PAC Partners agribusiness analyst Paul Jensz said it sent a confused message about investing in Australia, and ADM should have had some earlier warning that its bid may not succeed. "Australia should have some pretty clear guidelines on how these things are done," Mr Jensz said. We have had mixed messages. You pay a massive premium coming into Australia because to build things here is expensive. With that high price you would expect very clear parameters about how to invest. Mr Jensz said Graincorp has suffered a setback with the loss of $250 million in additional infrastructure investment pledged by ADM as part of the takeover conditions. Graincorp has made successful investments in malt and oilseeds and expanded its business in recent years. However taking the next big step to becoming a player in the growing Asian region, through major infrastructure spending, could be jeopardised if the company's earnings are hit by two or three poor years. "Graincorp needed that big brother to invest through the seasonal cycle and the investment cycle," Mr Jensz said. Another analyst said Graincorp was unlikely to invest on its own because it could not deliver a strong return to shareholders by building rail in an east coast market it already dominated. The analyst, who asked not to be named, said Graincorp remained a takeover target, with ADM possibly staying on as a shareholder and trying again in a few years.