Case Study: GSX & Frey Commodities – Strategic Expansion & Optimisation
Overview
Client:
Frey Commodities, a Denmark-based agricultural commodity trading company specialising in grains and oilseeds (G&O).
Challenge:
Frey sought to expand into soft commodities (coffee, cotton, and sugar) while simultaneously conducting a comprehensive financial and risk review to enhance its operations. The company needed a well-structured business plan, risk assessment, and capital optimisation strategy to align with its long-term growth objectives.
GSX’s Strategic Approach:
Great Southern Cross Commodities (GSX) was engaged to execute a three-stage strategic review and business development initiative to support Frey’s expansion and financial structuring.
Stage 1: Launching a Soft Commodities Vertical
GSX worked closely with Frey to develop a business plan and identify the go-to-market strategy for its new soft commodities vertical, with an initial focus on coffee and cotton. Key initiatives included:
Market & Competitor Analysis – Identifying key trends, risks, and opportunities.
Business Rationale & Strategic Differentiation – Establishing Frey’s unique market positioning.
Operational & Infrastructure Readiness – Determining resource requirements, including systems, human capital, and logistics.
Financial Planning – Forecasting capital requirements for the first 12-24 months.
Risk & Credit Limits – Developing frameworks for trading and financial exposure.
Partnership Development – Engaging with agents, brokers, and strategic partners to establish origination and destination market relationships.
Outcome:
A structured business plan, ensuring a well-prepared market entry with funding, staffing, and partnerships in place.
Stage 2: Financial & Risk Review
A full assessment of Frey’s financial health, risk policies, and trade finance capabilities was conducted to enhance capital efficiency and risk management practices. GSX focused on:
Risk Management Framework Enhancement – Identifying gaps in policies and procedures, developing strategies to scale operations while mitigating financial exposure.
Capital Allocation Optimization – Assessing financing structures and identifying opportunities for cost reduction and flexibility improvement.
Trade Finance Review – Evaluating terms and identifying new funding solutions such as supplier financing and differentiated payment structures.
Outcome:
A comprehensive report with recommendations for risk and financing improvements within four weeks, ensuring a scalable and financially sound trading structure.
Key Results & Impact:
→ Soft Commodities Business Plan Finalised
Ready for execution with capital, staffing, risk, and partnership strategies in place.
→ Risk & Financial Strategies Strengthened
Improved capital structures and risk management to support future growth.
→ Optimised Trading Operations
Enhanced efficiency and strategic alignment for both the new and existing business units.
Conclusion
Through GSX’s strategic expertise, Frey Commodities successfully positioned itself to expand into soft commodities while strengthening its financial and risk framework. The collaboration empowered Frey to scale efficiently, minimise risk, and unlock new market opportunities, ensuring long-term profitability and sustainability in global agricultural trade.