September 26, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Louis Dreyfus Company Asia Pte. Ltd. (LDC) has entered into an agreement with Longriver Farms, an associated entity of Roc Partners, for the acquisition of 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. 

With connections to 10,000 Australian farmers, an integrated supply chain, and a dedicated experienced team, Emerald offers a range of grain products including wheat, barley, and canola from across the country for export.

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.

“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,” said Michael Gelchie, CEO, LDC.

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.

“This agreement is an opportunity for all Australian growers in our network to access LDC’s extensive global reach,” said David Johnson, CEO, Emerald Grain. “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.”

James Zhou, chief commercial officer and head of Asia region for LDC, added, “As the oldest continually operating grain trading company in the country, LDC has a proud heritage of unparalleled commitment to Australian agriculture. With Emerald Grain onboard, 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.”

“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,” concluded Brad Mytton, director, Longriver Farms. “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.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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