AWB shares have been in a trading halt since Monday pending an announcement on the issue, which was forthcoming to the Australian Stock Exchange this morning.

AWB says the decision was based on an assessment that the current business model in Brazil cannot be operated in a manner which aligns AWB's four strategic objectives: lower risk business; sustainable earnings profile; streamlined debt profile; and customer centric approach.

The Commodity Management division will now consolidate the management of its business into two hubs, AWB Geneva and AWB Australia, which will oversee all commercial activity.

AWB says the poor result in Brazil was due to on-going credit issues caused by deteriorating market conditions in Brazil; reduced trading margins; on-going interest and overhead costs; and poor commercial decisions made locally.

AWB expects the closure to result in a number of one-off expenses, including the de-recognition of deferred tax assets currently valued at $US33m.