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.
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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.
