US grain giant’s Australia adventure is over

07 November 20131 min reading
Entering into Australian wheat market in which world grain giants are competing against each other, US grain giant Gavilon closes its branch in Perth, Western Australia. Giants’ competition in Australian wheat market continues. Entering into Western Australia market by aiming the local market three years ago but failing in that market, US grain giant Gavilon prepares to close its Perth branch. It is stated that Gavilon lost around 50 million dollars. Gavilon's failure in WA reflects the aggressive nature of the local market dominated by CBH, but is not expected to deter other multinationals wading in to meet growing world demand for grain. Swiss-based and Dutch-owned energy and commodity trader Vitol has emerged as a big new player after buying about 400,000 tons of WA port capacity for this harvest and establishing a footprint in South Australia. US co-operative CHS took a 50 per cent stake in Australian grain marketer Agfarm earlier this year, with Ruralco retaining the remaining share. Agfarm is a small player in WA and the deal went virtually unnoticed but industry sources now expect CHS to become a significant force in WA over the next few years.
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