Latest news with #grainexport
Zawya
31-07-2025
- Business
- Zawya
Oman acquires Agribrasil to boost food security
MUSCAT: Oman has taken a significant step in strengthening its global food security and expanding its agricultural commodities footprint with the acquisition of a controlling interest in Agribrasil, a leading Brazilian grain exporter, by ME Solaris Commodities Holding (Solaris) — a company majority-owned by the Sultanate of Oman's sovereign wealth fund. The agreement, signed on July 28, 2025, includes the acquisition of a controlling stake in Humberg Agribrasil Comércio e Exportação de Grãos SA (Agribrasil) and the Santa Catarina grain terminal (TESC). Solaris also entered into separate agreements to acquire additional minority interests in TESC. The deal, which is pending regulatory approval, is expected to close by the end of this year. In an official announcement by Agribrasil, the company described Solaris as one of the world's top five wheat traders and a key player in the global agricultural commodities market. It said the investment would allow Solaris to enter the Brazilian corn and soybean markets, gain strategic access to port logistics infrastructure, and diversify its commodity portfolio — all while contributing to global food security objectives. Solaris's entry into the Brazilian agricultural market underscores Oman's growing ambition to secure reliable sources of food and diversify its economy in line with Oman Vision 2040. The investment secures a long-term foothold in Latin America's leading grain-producing nation and strengthens trade links with key markets in the Middle East, including Oman itself. Agribrasil, which ranks among Brazil's top five grain exporters, posted a strong performance in the first quarter of 2025, selling over 1.016 million tonnes of grain — a 75% increase from the same period last year. The company's net income soared by 302% to BRL 1.361 billion. Its exports are heavily focused on corn and soy, with 97% of its sales destined for international markets. The Middle East and North Africa (MENA) region, including Oman, accounted for 58% of Agribrasil's exports. According to Frederico Humberg, Agribrasil's founder and current stakeholder, the transaction will enhance the company's global reach and reinforce its commitment to supply stability. This move is part of a broader trend among Gulf countries investing in overseas agribusinesses to safeguard against supply disruptions and ensure long-term food security. With Brazil being one of the world's top agricultural exporters, Oman's strategic acquisition places it in a stronger position to manage supply chain risks and meet domestic and regional demand in a volatile global market. 2025 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
ABC News
18-06-2025
- Business
- ABC News
Historic wheat shipment ends CBH's 85-year monopoly at Geraldton port
In what is regarded as a sign of growing competition in Western Australia's $10 billion export grain industry, the first shipment of wheat to depart Geraldton independent of the CBH Group sailed last night. CBH is Australia's largest agricultural cooperative and is WA's main grain handler, exporting most of the state's average annual 16 million tonnes of crop. For the past 85 years it had exclusively exported grain from Geraldton, 420 kilometres north of Perth. But after two years of planning, a group of farmers and Andrew Young of Plum Grove Logistics successfully sidelined CBH and loaded 6,800 tonnes of wheat using a mobile conveyor at the Geraldton port. "There have been several attempts over the past decade, but my understanding is this is the first successful attempt at a trial shipment of wheat [at Geraldton] outside of the CBH system," Mr Young said. The grain is bound for a flour mill in Indonesia. The shipment sees Geraldton join other ports such as Albany, Esperance and Bunbury where exports have been conducted independent of CBH. "This is something that's happening across the industry," Mr Young said. "It's a common feature on the east coast. There are about 11 mobile loaders operating across the country." WA exports about 90 per cent of its grain crop through bulk export to more than 30 countries across the world. The CBH Group is owned by WA growers and has investments along the grain supply chain. But some farmers are disgruntled at the cost of exporting grain and have turned their eyes to other export pathways. In a statement, CBH said it was aware of the Plum Grove shipment. "Our focus is on out-loading last year's crop and maintaining a high level of service to our customers around the world while providing value back to WA growers," the statement read. "We are also preparing for the upcoming harvest, investing significantly in the network so it can handle increasing crop sizes consistently and sustainably." Mr Young would not be drawn on the economic outcomes of the Geraldton trial shipment, but said farmers had saved money compared with the usual CBH pathway. "It's not something that's simple — you have to get your export accreditation, you have to get environmental approvals," he said. "You have to work with the port authority and they have been very cooperative, but there are issues on a number of fronts managing this sort of exercise." WA Farmers grains section president Mark Fowler said an injection of competition in the northern end of the grain supply chain and export space was good for WA growers. "I'm talking about CBH mostly here, but improved transparency, it makes the monopoly work harder. There is more direct pricing of the costs that go into the supply chain. It gives growers access to different markets," Mr Fowler said. "There's less middlemen potentially and maybe a greater return of value to growers. "I know of a few cases where those shipments have occurred and the pricing that's been available to growers has reflected that." Mr Fowler said the state was expected to grow more grain in the coming years, particularly with the collapse of the WA sheep industry. He said he did not think exports independent of CBH would jeopardise the critical mass of grain needed for it to continue its current service and plans for the future. "The amount of tonnes we are talking about I don't think are going to be significant enough to undermine what CBH is proposing to do with their reinvestment in the supply chain," he said. Mr Young said there was ambition within the group of Mid West farmers to export more grain, but the first step was to review the effectiveness of the trial. "The coming harvest would be a good opportunity, subject to ensuring all things are working well," he said. "It is a milestone but at the same time there is plenty of work to do to turn it from a trial shipment to something that's more sustainable and provides opportunity for growers in the Geraldton zone."
ABC News
08-05-2025
- Business
- ABC News
Shipping costs hinder grain being sent to drought-affected farmers
A West Australian grain exporter says it is cheaper and safer to send Australian grain to China than to drought-hit farmers in states such as South Australia. Livestock farmers grappling with an ongoing drought in SA are running short of feed and are looking to source grain and fodder from other states. But Perth-based shipper John Orr said union and government-imposed shipping rules made it risky and expensive to send grain to other states. "It's horrendously expensive to ship interstate these days and there's some really sad reasons for that," he said. Mr Orr said mandated higher wages for seafarers on interstate shipments added $60 a tonne to the cost of lupins and other grains compared to the average shipment to China. Most of Australia's domestic freight is transported via road or rail. The nation has nine Australian-flagged ships and the government is looking to increase the fleet. Near Streaky Bay on the Eyre Peninsula, farmer Dion Trezona has been rationing the feed he has left for his sheep while hoping for rain. Last year he cut 60 bales of hay. He usually grows about 1,000. "It's less than ideal, when you only have 100mm of rain for the whole year last year, the feed now is pretty well non- existent," he said. Mr Trezona said he had brought some manufactured sheep pellets from WA on trucks. Running out of hay was his biggest concern. He said some grain prices had soared and the cost of freighting in feed was adding $100 to $150 a tonne to his expenses. "There's no support over here in South Australia for the majority of grain producers in the state," he said. "The state government here seem to think we'll grow the money to get the economy going for the state, but they don't have to support us in the middle. "When you're 1,000 kilometres from nowhere and you just want stuff to rock up in bulk, a bit of support for some freight subsidies would be appreciated, if not needed." Mr Orr said he had received enquiries for grain to be sent east and he wanted to assist, but he couldn't make the numbers work. He said crew costs, and Australian port container booking charges and the risk of exorbitant fees if a container arrived to the wharf an hour late, made it unviable. "Plus you still have to pack the product and then you have got to get anthracnose testing done because of interstate quarantine requirements, those containers get locked up while you're doing the tests, there's a lot of risk involved," he said. After promising to create a "strategic fleet" of up to 12 Australian-flagged and crewed vessels for commercial operation in 2019, the Commonwealth government also commissioned a strategic fleet task force report. It made a number of recommendations to reverse the decline of the Australian shipping fleet. The report suggested shipping taxation incentives and government financial assistance be provided to ship owners and operators to reduce the cost gap between Australian and foreign vessels. Maritime Industry Australia chief executive Angela Gillham said tax reform, such as seafarers' income tax and changing corporate tax settings, was essential to make Australian vessels cost competitive with their international counterparts. "When we are talking about the competitive nature of Australian ships versus international, it's really all about tax," she said. "There are some really good opportunities to reduce the cost differential between Australian and foreign ships that are available for the government to do right now." Ms Gillham said the government needed to act swiftly. "We have about nine vessels left, for a very large island nation that has a significant shipping task that exists within a fairly volatile geopolitical dynamic at the moment, vulnerable supply chains, we think it is incredibly urgent," she said. "We needed to get started on this a decade ago." After floods cut railway lines in 2022 the WA government formed a shipping and supply chain task force to examine the shipping industry and supply chain links between WA and interstate and international customers. The report made a range of recommendations, including that the WA government work with the Commonwealth and other states to "level the field" with international carriers and stimulate an Australian flagged fleet. Barry Large heads up Grain Producers Australia, a national organisation representing grain growers. He said Australian growers should have access to any domestic market at any time as long as biosecurity protocols were met. "It's putting added costs onto the growers who are finding it tough at the moment because they can't access [the WA] market, so really it's not helping anyone here." Mr Large said bulk shipping would normally be the most cost-effective way of moving large volumes of grain, while removing it from the road network. "Quantity [should] mean decreased costs, and when it works the other way you really have to ask questions." Mr Large said the current legislation review was an opportunity to create a more flexible and cost-competitive domestic shipping system. A final report for the Coastal Trading Act review is due this year.
