Marubeni Australia confirms closure

06 Apr, 2015 09:02 AM
Comments
9
 
A relatively small, but important part of the Australian grains industry for many years

JAPANESE trading house Marubeni has decided to close its Australian grain business.

In a letter obtained by Fairfax Media, Marubeni Australia managing director Makoto Kajitani confirmed the company was closing its grain business in Australia.

He said this was due to the company’s global grain strategy and not a result of any performance issues.

“The business has made a profit for the past three years,” he said in the letter.

He said all existing contracts would be executed before the business was wound up.

Marubeni has been a relatively small, but important part of the Australian grains industry for many years.

It had close links with the domestic feeder industry on the east coast in particular.

Industry insiders estimated the company would have accumulated total tonnages less than 250,000 tonnes a year, but said it was a significant player in certain areas.

No one from Marubeni could be contacted to comment officially.

FarmOnline
Gregor Heard

Gregor Heard

is the national grains writer for Fairfax Agricultural Media
Date: Newest first | Oldest first

READER COMMENTS

Jock Munro
6/04/2015 6:05:12 PM

Is Marubeni packing its bags because there are too many merchants here with their snouts in the trough? Pity the Australian grains industry is not a little bigger - there would be even more opportunity for the middleman!
ATB
9/04/2015 7:49:44 AM

Come on Jock... If there are too many MEGA MERCHANTS, then wouldn't they all be fighting to buy our grain ? Therefore pushing prices up..? Marubeni are a MEGA MERCHANT. Why wouldn't they stick around if the job is so lucrative hoovering up all the huge margins left by the removal of the Single Desk? (just in case anyone forgot - By Rudd and the Liberals under Brendan Nelson)
Jock Munro
10/04/2015 5:51:25 PM

ATB, You can have as many mega merchants as you like but the demand side will not change. You really need to think this through-then you wont fall for the spin. Yes Rudd Labor and Nelson's Liberals voted down the single desk. You can watch it on Youtube-Liberal Wheat Treachery.
ATB
13/04/2015 8:26:39 AM

Thanks Jock, I probably won't watch that. Your view is once again very narrow minded. Competition is not defined or restricted by demand.
Jock Munro
14/04/2015 4:46:35 PM

So ATB if you were selling a certain brand of tractor in your local village, you would welcome another dealer selling the same brand of tractor to open beside you?!
Dean
15/04/2015 10:34:07 AM

Jock, that's healthy competition. If dealer "A" continues good service, they will retain business. Competition between businesses drives better service, as well as providing more options for the consumers.
Jock Munro
15/04/2015 2:09:44 PM

Dean, Competition is healthy for the consumer but dealer A will suffer financially. In the end dealer A might get sick of it because he no longer has a satisfactory turnover and shut his doors. Then you might be left with B who wasn't necessarily the best dealer anyway. Then the consumer will lose out. in the wheat job growers are getting less and their product is diminished in quality and service through competition via the merchant stranglehold..
ATB
16/04/2015 3:09:22 PM

Jock - Hopefully this rain delivers and you will be out putting the crop in so we get a break Its a 2 sided argument As a grain (I mean tractor) seller in this village, I don't mind a 2nd, 3rd or 4th Tractor (i mean grain) buyer opening up and competing for my tractor... I also don't mind the grain (tractor) buyer building a port or 2 and buying some trains, then investing their fixed operating costs in buying my grain at a premium - Even bigger than your perceived quality premium -Over the world market
cmt
27/05/2015 3:59:31 AM

It is a waste of time arguing with fools, Jock.

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