Known for the size of its business in orange juice, grains, and more recently in sugar and alcohol, the French multinational Louis Dreyfus Commodities has decided to incorporate Brazil to its global platform marketing of rice, says Jornal Valor.
Starting this year, the company, which grossed U.S. $ 7.3 billion in 2009, will start the origination of grain in Rio Grande do Sul and export, mainly to Africa. The move reflects the company’s global vision of the world’s population will grow and urbanize at a rapid pace in coming decades, which will raise the demand for food.
Investments to double production in 4 years
The novelty includes the company’s strategy of investing in the next four years $ 775 million in Brazil to double the handling of agribusiness products from 8 million tons today to 17.2 million by 2014. The president of LD in Brazil, Kenneth Geld, points out that investment does not include acquisition and not deal with the Santelisa.
Cofffee is also a priority
Coffee is another commodity in LD’s list of priorities in Brazil. Geld said that this year between U.S. $ 6 million and $ 8 million will be invested to build two more warehouses in the producing area of arabica coffee in Minas Gerais. The goal is to double the current capacity. By 2014, the company wants to move 355,000 tons of grain – the equivalent of 20% of Brazilian exports today – before the 75 000 tonnes traded in 2009. ”Coffee is a product of higher added value.” he points out.