October 5, 2022
Louis Dreyfus Company, Longriver Farms enter into a sale and purchase agreement for Emerald Grain
Louis Dreyfus Company Asia Pte. Ltd. (LDC) and Longriver Farms announced last month that the companies have entered into an agreement for the acquisition of Emerald Grain Pty. Ltd. by LDC.
"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, LDC's chief executive officer.
"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," said Longriver Farms director Brad Mytton. "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."
Emerald Grain is a leading grain handling business in Australia, with a network of seven grain storage and receival sites across the states of New South Wales and Victoria, with a combined storage capacity of approximately one million tonnes, as well as a grain export terminal at the Port of Melbourne and marketing offices in Geraldton, Western Australia and Moama, New South Wales.
Thanks to its ties with some 10,000 Australian farming families, an integrated supply chain and an experienced and dedicated team, Emerald Grain offers customers a broad range of grains 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," said Emerald Grain CEO David Johnson. "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," said James Zhou, LDC's chief commercial officer and head of Asia Region. "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."
The agreement is subject to regulatory approvals and customary closing conditions.