THE Asian arm of global commodity trader Louis Dreyfus Company has today announced it has entered into an agreement to buy Australian grain trader and bulk handler Emerald Grain from Longriver Farms.
“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.
“I want to thank Emerald Grain’s management team and staff for their significant contribution to the successful growth partnership to date with Longriver Farms,” Longriver Farms director Brad Mytton said.
“We are pleased to announce this agreement with LDC, under which Emerald Grain’s grower and customer network will benefit from LDC’s scale and expertise in agri-commodities, for a continued growth journey going forward,” Mr Mytton said.
Assets in NSW, Victoria
Emerald Grain has a network of seven grain storage and receival sites across the states of New South Wales and Victoria, and a combined storage capacity of around 1 million tonnes.
It also own and operates the Port of Melbourne’s only grain terminal, which has a maximum load-out rate of 20,000t per day, and road and rail access, as well as marketing offices in Geraldton in Western Australia and Moama, NSW.
These give it an integrated supply chain and an experienced staff which deals in a range of products including wheat, barley and canola for export across Australia.
“This agreement is an opportunity for all Australian growers in our network to access LDC’s extensive global reach,” Emerald Grain CEO David Johnson said.
“LDC’s leadership position in the global agriculture industry reflects its commitment to growers and customers alike, and we look forward to continuing our journey as part of the LDC family.”
“As the oldest continually operating grain trading company in the country, LDC has a proud heritage of unparalleled commitment to Australian agriculture,” LDC’s chief commercial officer and head of Asia region James Zhou said.
“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,” Mr Zhou said.
In December 2020, Emerald Grain was sold by Japan’s Sumitomo Corporation to Roc Partners’ associated entity Longriver Farms.
Source: Emerald Grain, LDC