AUSTRALIA— The Asian arm of global commodity trader Louis Dreyfus Company has announced it has entered into an agreement with Longriver Farms for the acquisition of its subsidiary Emerald Grain – a leading grain handler in Australia – for an undisclosed sum.
Longriver Farms came into ownership of Emerald in late 2020, when it acquired the business from Sumitomo, which had owned a 50 percent stake in the company since 2010, and gained full ownership in 2014.
“This agreement is an opportunity for all Australian growers in our network to access LDC’s extensive global reach,” said Emerald Grain CEO David Johnson.
Indeed, LDC is the longest continually operating grain trading company in Australia. Founded in 1851, LDC’s business spans the entire value chain across grains and oilseeds, coffee, cotton, juice, rice, sugar, freight, carbon solutions, and global markets.
Structured as a matrix organization of six geographical regions and nine platforms, the company employs 17,000 people globally and is active in more than 100 countries.
With connections to 10,000 Australian farmers, an integrated supply chain, and a dedicated experienced staff which deals in a range of products including wheat, barley, and canola from across the country for export.
“This development is aligned with LDC’s commitment to the Australian market, where LDC has been active for over a century, originating, processing and exporting grains, oilseeds and cotton, and with our strategic plans to further reinforce our leading position in core agri-commodities merchandising activities,” LDC’s chief executive officer Michael Gelchie said.
The deal includes Emerald’s network of seven grain storage and receival facilities across the states of New South Wales and Victoria with a combined storage capacity of approximately 1 million tons, along with a grain export terminal at the Port of Melbourne and marketing offices in Geraldton, in Western Australia, and Moama, in New South Wales.
“With Emerald Grain on board, we look forward to continuing to support Australia’s farming community and grain industry, while reinforcing our origination network for key grains and oilseeds staples to meet growing customer needs worldwide,” LDC’s chief commercial officer and head of Asia region James Zhou said.
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