PARIS (Reuters) -Agrifood group ETG will close its grains and oilseeds business in Australia and refocus the rest of the division on supporting its core African activities, while also aiming to expand in other commodities, the company said on Wednesday.
Founded in Kenya in 1967, ETG has activities across Africa and globally spanning crop and fertiliser trading, food processing, logistics and supply chain management.
“Going forward, our Grains & Oilseeds strategy will have an increasingly Africa-oriented focus, including activities through our Spain desk, with a continued emphasis on integrated supply chain management,” ETG said in an emailed response to Reuters.
“In parallel, we are placing greater strategic focus on expanding our Coffee, Sugar, and Metals businesses.”
ETG said the changes followed a recent strategy review of grains and oilseeds to support the group’s ongoing competitiveness, without detailing further.
Two market sources familiar with the restructuring said it reflected weak margins in grain markets marked by multi-year price lows, adding that ETG had also cut staff in South Africa and Singapore with offices there expected to close.
ETG said its grains and oilseeds trading activity in South Africa and Singapore will continue.
The company was also making management changes as part of the review.
These include the departure of Nicolas Janssens, chief operating officer of ETG Commodities, and a refocused role for Stephane Bernhard running ETG’s asset management unit without his previous role in charge of a specialised commodity trading desk, ETG said.
(Reporting by Gus Trompiz, additional reporting by Peter Hobson in Canberra; Editing by Kirsten Donovan)
