ADELAIDE, Aus. — Australia’s Emerald Group has quietly secured a major portion of Australia’s multibillion-dollar grain trade.
The company, unknown to Australian farmers just 10 years ago, has already secured a 10 percent share of the Australian grain market.
Chair Alan Winney would like to increase market share to 20 percent in the next few years.
The company could take a big step toward that if its bid to buy Australian Bulk Alliance (ABA) is successful.
ABA now owns a grain export terminal in Melbourne and a network of more than a dozen bulk grain collection and handling facilities in New South Wales and Victoria.
Read Also
Increasing farmland prices blamed on investors
a major tax and financial services firm says investors are driving up the value of farmland, preventing young farmers from entering the business. Robert Andjelic said that is bullshit.
Brian Dalitz, Emerald’s general manager for trading and marketing, said acquiring grain handling infrastructure is critical.
“There is a global trend toward ownership and control of the supply chain,” he said. “The Glencore example … is testament to that, and it’s no secret that Bunge and Dreyfus through Asia have made a lot of in-vestment in the supply chain.”
Emerald is Australia’s fifth largest grain company, with annual handlings in excess of four million tonnes per year. Besides making a play for ABA, it is also considering an agreement with Australian mining company, Centrex Metals. That would give Emerald access to an export facility on South Australia’s Eyre Peninsula, a key wheat growing area that exports most of its production.
