Gavilon do Brasil, a Brazilian commodities trader and subsidiary of Japan’s Marubeni Corp, uses an “asset-light” business model, avoiding capital-intensive assets such as processing plants and port facilities.
This strategy has seen the company grow into being one of Brazil’s top 10 soybean exporters, and the country’s top wheat exporter with 50 percent of the market, after only four years.
However, contention about whether to venture deeper into wheat milling has resulted in the sudden dismissal of Renato Lofrano, the company’s former head of its wheat division, after five years in the role.
Gavilon said that it intends to continue trading and distributing wheat, but will not enter the milling industry, as doing so would position the company in competition with its own customers.
Instead, the company will focus on growth areas, concentrating on its soy business, noting that it expects to post its “best results ever” at the end of fiscal year 2018 in March.
Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at email@example.com.