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

On June 18, 2020, Gavilon Grain spilled a million gallon container of liquid nitrogen fertilizer into the Bee Branch.[9] 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.[10] This severely damaged the mussel population, causing the largest mussel kill in the state. The company was fined $270,000.[10][9] The largest fine of $244,705 was issued to restore giant floater and plain pocketbook mussels.[10]

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. Jordan, Erin (2021-10-28). "Dubuque company to pay $270K for fertilizer spill". www.thegazette.com. Retrieved 2022-12-27.
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