Tokyo-based Sumitomo Corp. plans to boost its grain trade capacity by 50% within five years through focusing on Australian wheat and exports to Southeast Asian markets. The company plans to expand its current 4.5 million metric ton annual Australian operation by doubling its number of silos and investing in new ports. Sumitomo took full control of Australia’s Emerald Agribusiness Group Pty in February of this year, increasing its stake from 50% as Japanese trading companies are shifting focus away from coal and iron ore to foods. The planned expansion will help Sumitomo to become one of Australia’s top three exporters and will be the foundation for expansion of the business model into other regions such as Brazil, North America, and the Black Sea. Australian grain sales are expected to earn the company $9.9 million this year, or 0.4% of Sumitomo’s total profits – equaling a 43% increase in profits in two years.
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