Louis Dreyfus Co expands specialty feed production in China

By Jane Byrne

- Last updated on GMT

© GettyImages/PM Images
© GettyImages/PM Images
Louis Dreyfus Company (LDC) has officially broken ground on a new specialty feed production line in Tianjin in Northern China, as part of its strategy to diversify revenue through value-added products.

Located near LDC's existing Tianjin oilseeds crushing plant, the new site will focus on producing fermented soybean meal. This expansion aims to tap into China's specialized feed protein market.

The facility will use advanced fermentation technology to enhance feed protein content, palatability, and digestibility using multiple probiotic strains. The production line is expected to be operational by the second half of 2025.

The goal to provide high-quality specialty feed proteins to the local livestock and poultry farming industry, with the idea of boosting animal health and growth rates, contributing to more efficient farming, according to Shengshu Huang, LDC's chief technology officer for animal nutrition in North Asia.

Geopolitical, macroeconomic, and environmental challenges

Recently, LDC reported its consolidated financial results for the first half of 2024, claiming resilience amid geopolitical, macroeconomic, and environmental challenges.

Net sales reached $25.6bn. Capital expenditure saw a 30% year-on-year increase as LDC continued to invest in plans aimed at diversifying its business portfolio and strengthening its global presence.

CEO Michael Gelchie said LDC grew its shipping volumes by 19.4% year-on-year despite disruptions.

Robust performance in the wheat business, driven by a larger Argentinian crop and market diversification, contributed to these results. However, soy and corn businesses faced headwinds due to low volatility and reduced margins in China and North America. Brazil's origination margins were impacted by crop failures and low farmer selling, while Argentina saw improved performance compared to 2023, reads the company's Interim Financial Report 2024​.

LDC continued its investments in core merchandising activities, including expanding crushing capacity in North America.

As regards sustainability goals, the company said it has made progress in promoting regenerative agriculture, habitat conservation, and decarbonization efforts across its operations and supply chains. This included promoting camelina cultivation in Latin America as a cover crop for renewable fuel and feed production.

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