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.