The Wheat Milling Industry in Colombia: The case of Molino Tres Castillos

Abstract

Established in Cartagena in 1861, Rafael del Castillo & Cia., is one of the oldest family businesses in Colombia. It has been managed by four generations of the del Castillo family from its founding to the present, when it is undergoing an unprecedented process of expansion and diversification. Changes in national economic policies in the XXth century induced changes in the company, which had to introduce new business strategies to adapt to new rules of the game. This essay describes and analyzes the most significant changes undergone by the company since 1940, when it ceased to be a retail business and became a producer of wheat flour. An examination of the activities of Molino Tres Castillos between 1940 and 2012 illustrates how the survival and success of family businesses depends not only on the economic and institutional environment that influences its corporate structure but also on the relationship between the family and the company.