Euro giant Louis Dreyfus to quit dairy

28 Jan, 2019 08:01 AM
Comments
0
 
Louis Dreyfus will retain its minority stake in the 18-month old South Australian Midfield processing plant in Penola.
LDC was evaluating whether to implement an orderly wind down or sale to potential buyers.
Louis Dreyfus will retain its minority stake in the 18-month old South Australian Midfield processing plant in Penola.

European agricultural commodities giant, Louis Dreyfus Company, is to quit its global dairy business by mid-year.

However, the company will retain its minority stake in the 18-month old South Australian Midfield processing plant in Penola.

The move is in line with the company’s three-year strategy to exit non-core areas and focus on its core businesses, notably investments in origination markets and expansion along the processing value chain.

Chief financial officer, Federico Cerisoli, said Louis Dreyfus Company’s (LDC) dairy business accounted for just one per cent of total revenue in 2018, but demanded substantial working capital resources.

LDC was evaluating whether to implement an orderly wind down or sale to potential buyers.

“Following the exit, our only exposure to dairy will be a non-controlling stake in a dairy processing plant in Australia,” he said.

LDC entered the dairy business in 2009, originating from key suppliers in North America, Europe, Oceania and South America.

It processes and delivers mainly milk powders, lactose and whey products through its Ecoval Dairy Trade business to markets, including Asia, Mexico, North America, the Middle East and Africa.

LDC has also exited its fertiliser and farm inputs and its metals platforms in the past 18 months.

Landmark purchased the $160m Macrofertil Australia fertiliser business a year ago.

Andrew Marshall

Andrew Marshall

is the national agribusiness writer for Fairfax Agricultural Media

POST A COMMENT


Screen name *
Email address *
Remember me?
Comment *
 
Fertigation is the injection of fertilisers, soil amendments and other water-soluble products through an irrigation system. 
16 Apr 19 Fertigation is the injection of fertilisers, soil amendments and other water-soluble products through an irrigation...
A fertigation trial in south-east Queensland for the past two years has shown it produces more pasture and cuts labour and fuel costs.
16 Apr 19 A fertigation trial in south-east Queensland for the past two years has shown it produces more pasture and cuts...
light grey arrow
This project was doomed from the start. Sri Lanka's Department of Animal Production and Health
light grey arrow
What an awesome article, this will save so much time and money for farmers across the world with
light grey arrow
The $1 a litre milk has already forced closure of numerous dairy farms. Lion Dairy & Drinks
An industry survey revealed that farmers milking larger herds have adopted more precision technologies, and that is expected that by 2025 the adoption of technologies for data capturing and monitoring system parameters will increase.
08 Apr 19 An industry survey revealed that farmers milking larger herds have adopted more precision technologies, and that is...
Virtual fencing (VF) technology has great potential to alleviate the costs, time and labour devoted to the establishment and maintenance of traditional physical fences.
08 Apr 19 Virtual fencing (VF) technology has great potential to alleviate the costs, time and labour devoted to the...
Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition opportunities.25 Sep 16 Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition...
Monopoly market may confront cropping sector under mega-merger proposal.22 Sep 16 Monopoly market may confront cropping sector under mega-merger proposal.