LDC backs ‘sustainable’ agribusiness development in China, sees investment opportunities

06-Sep-2018 - Last updated on 08-Oct-2018 at 14:41 GMT

Louis Dreyfus Company (China) Trading Company Limited (LDC) says it will continue to look for investment and collaboration opportunities in Tianjin and other cities as part of the company’s long-term plan to grow in China.

The statement follows the official opening of its new oilseeds processing plant, aimed at enhancing LDC’s soybean processing capabilities in China.

The facility - Louis Dreyfus Company (Tianjin) Food Technology Company Limited – is located in the Binhai New Area District of the Tianjin Free Trade Zone. It has a soybean crushing capacity of 4,000 tons and a daily oil refining capacity of 1,200 tons.

The asset in question was previously owned by Sinarmas Natural Resources Foodstuff Technology (Tianjin) Co., Ltd, whose parent company is commodities giant, Golden Agri-Resources (GAR). It was sold to LDC last year.

Netherlands headquartered, LDC, which has been investing in China since the 1970s, said it was committed to leveraging its “scale and expertise as a global merchant and processor of agricultural products to support the country’s sustainable development, with a focus on innovation and working closely with our local partners.”

Growth and modernization of the Chinese feed sector

In terms of how easy is it to invest in China today, James Zhou, head of the north Asia region at LDC, told FeedNavigator in April this year:

“We believe this is an opportune time to invest in China as the Chinese government has openly communicated their intentions to expedite the opening up of the economy, welcoming investments across many industries, including the agricultural processing sector.”

He said the company’s Tianjin crushing acquisition was a positive response to that Chinese policy development.

Asked whether the recent consolidation trend in the Chinese feed sector and increasing scale of feed manufacturers in that market appeal to LDC, Zhou said:

“It is encouraging to witness the growth and modernization of the Chinese feed sector that contributes to a conducive business environment for agricultural processors like ourselves to supply the market with higher protein soybean meal that helps meet growing domestic consumer demand for animal protein.”