Gavilon

Gavilon is a commodity management firm based in Omaha, Nebraska. The company is organized into two operating segments:

Operating segments

Grain & Ingredients – Gavilon originates, stores, and distributes grains and oilseeds, as well as feed and food ingredients, to food manufacturers, livestock producers, poultry processors, soybean processors and ethanol producers worldwide.

Fertilizer – The company also partners with offshore suppliers and leverages its global logistics system to provide customers competitively priced fertilizer.[1]

Gavilon uses the futures market to manage price risk associated with inventory positions and forward contracts.

History

The company’s history dates back to 1874,[2] when Minneapolis-based Peavey Company built its first grain facility. In 1967 the Canadian operations began and later renamed as Peavey Mart. In 1982, Peavey was acquired by ConAgra Foods, Inc.[3] and later became part of ConAgra Trade Group. In 1984 Peavey Mart was sold to the Canadian management team. In 2008, a group of investors formed Gavilon and acquired ConAgra Trade Group, enabling the privately held company to focus on growing its commodity business.[4] In 2010, Gavilon acquired the DeBruce Companies,[5] which significantly expanded the company’s agricultural operations. In 2013, Marubeni Corporation, one of the largest general trading companies in Japan, purchased the company's agriculture assets and businesses.[6] Later that year, Gavilon's energy business was sold to NGL Energy Partners LP (NYSE: NGL).[7]

Today, Gavilon employs 2,000 people around the world and is the second largest grain handler in North America based on storage capacity.

In 2022, Gavilon was purchased by Viterra for $1.1 billion. It is expected Gavilon will be fulling integrated in Viterra by early 2023.[8]

Bee Branch Mussel Killing

June 18, 2020, Gavilon Grain spilled two containers with a million gallons of liquid nitrogen fertilizer into the Bee Branch in Dubuque, Iowa.[9] An estimated 432,000 U.S. gallons (1,640,000 L) of fertilizer was spilled into a storm drain that flows into the Bee Branch.[9][10] The accident was caused by a mistake transferring nitrogen, with the receiving tank overfilling. The transfer was not being watched nor was the spill immediately reported.[11] This severely damaged the mussel population, causing the largest mussel kill in the state of Iowa[11][9] and killed numerous fish.[10] They died to the high concentrations of ammonia. A second killing happened as the leftover fertilizer was washed back into the Bee Branch.[12]

The company was fined $270,000.[11][9] The largest fine of $244,705 was issued to restore giant floater and plain pocketbook mussels. Gavilon also agreed to pay $18,828 for fish restoration.[11] An administrative penalty of $7,000 was issued by the Iowa DNR, which is lower than is required to be issued under Iowa law.[12]

Gavilon made a "three-pronged plan" to clean the Bee Branch. First, Gavilon would pump air into the southeast area of the basin. Second, Gavilon would recirculate water in the affected area. Thirdly, Gavilon asked the DNR for permission to flush the sewer to remove any ammonia left in there.[13]

References
  1. "Agriculture - Gavilon Manages the Business of Agriculture | Gavilon". Archived from the original on 2012-02-28. Retrieved 2012-04-19.
  2. "Why Gavilon?". 13 September 2018.
  3. "Home". conagrafoods.com.
  4. "ConAgra Foods Completes Sale of its Trading and Merchandising Operations to Investor Group Led by Ospraie; Supplemental Share Buyback Authorized | Gavilon". Archived from the original on 2013-11-09. Retrieved 2012-04-19.
  5. "Gavilon, LLC Completes Acquisition of DeBruce Companies | Gavilon". Archived from the original on 2012-08-19. Retrieved 2012-04-19.
  6. "Gavilon Statement on Acquisition by Marubeni Corporation | Gavilon". Archived from the original on 2012-06-01. Retrieved 2012-05-30.
  7. "NGL Energy Partners LP Completes the Acquisition of Gavilon's Energy Business | Gavilon". Archived from the original on 2014-05-27. Retrieved 2014-05-27.
  8. "Glencore's Viterra finalises acquisition of Gavilon". FoodBev Media. 2022-10-12. Retrieved 2023-02-19.
  9. Strong, Jared (2021-11-02). "Agricultural company to pay $270,000 in fines, restoration fees for 'largest mussel kill' in Iowa". The Des Moines Register. Retrieved 2022-09-16.
  10. Strong, Jared (2021-11-01). "Company to pay $270,000 for 'largest mussel kill in the state'". Iowa Capital Dispatch. Retrieved 2023-01-07.
  11. Jordan, Erin (2021-10-28). "Dubuque company to pay $270K for fertilizer spill". The Gazette. Retrieved 2022-12-27.
  12. "Large fertilizer spill reveals lack of regulation". Iowa Environment Council. Retrieved 2023-02-23.
  13. "New plan developed to stop ongoing fish kill in Dubuque". Iowa DNR. 2020-06-25. Retrieved 2023-01-16.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.