The global agro trader Louis Dreyfus Company (LDC) forecasts retention of the market uptake for food in the course of the coronavirus pandemic, as per Reuters.
The company attributes it to the fact that the whole world’s consumption is now focused on basic food products. “Whilst the coronavirus pandemic has affected demand for biofuel made of plant crops and discretionary expenses for rationing, agro markets keep on enjoying stable demand for basic victuals,” noted Louis Dreyfus CEO Ian McIntosh.
According to Ian McIntosh, the call for foodstuffs and forage fodder is going to be supported by the restoring of pork in China after the African swine pest. Perhaps, short-term demand changes will play their part in it, as it was with the rice in West Africa, and coffee worldwide.
The stockpiling may come another factor encouraging market pull for food. The health care crisis forces buyers to avoid a considerable part of agriproducts from some countries.
A barrage of accumulation may create volatility at agricultural markets, and Louis Dreyfus will strive to utilise its global presence for trade opportunities, added Mr McIntosh.
He said also, that now in the fervour of coronavirus pandemic it’s impossible to provide a forecast for 2020. However, he topped up that the initial outbreak of illness in China had no impact on the victualling share of LDC’s business.
In September 2019 European Bank of Reconstruction and Development (EBRR) granted to the agrotrader Louis Dreyfus Company the $35M loan for developing its own railway logistic business in Ukraine.
Since 2012 LDC and LLC Brooklyn-Kiev have jointly realised the project of building a new grain handling complex in Odessa Port capable of annual 4.5M t, the cost totalling $100M.
In November 2018 Chairwoman of Louis Dreyfus Holding B.V. Supervisory Board Margarita Louis-Dreyfus visited Ukraine, declaring the company’s plans to considerably enlarge investments in Ukraine in the nearest time.
In September 2018 LDC and LLC Brooklyn-Kiev started their joint operation of the first lot of grain wagons.
Louis Dreyfus Company (HQ in Amsterdam, the Netherlands) focuses on agriproducts and fertilisers trade. It controls about 10% of the global commodities turnover, and presents the D letter in the ‘ABCD’ world top four (ADM, Bunge, Cargill, Louis Dreyfus) of agrotraders. In 2018 the holding augmented its net profit by 12% comparing with 2017— up to $355M.
LDC operates in Ukraine since 1998 and is among the largest exporters of agriproducts from Ukraine, supplying foreign markets with some 4M t of grains yearly.
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