Cargill, Dreyfus expand global operations

Louis Dreyfus builds its first export terminal in Russia, while Cargill opens an oilseed processing plant in China

Louis Dreyfus Co. is expanding its global grain handling network with a new terminal in Russia’s Rostov region.

The terminal was built in partnership with the European Bank for Reconstruction and Development and is located on the Don River, not far from Russia’s southern-most border with Ukraine.

It includes two berths and 10 silos with a total storage capacity of 50,000 tonnes.

It will be used to transload grain on sea-river vessels.

Initial export capacity is estimated at 800,000 tonnes, eventually increasing to one million tonnes.

“Historically, Russia has been a country of particular significance for our group, which has been active here since 1864,” Louis Dreyfus chair Margarita Louis-Dreyfus said in a May 2 news release.

“With its grains production now exceeding 100 million tonnes annually, it is one of the leading producers and exporters of wheat and barley globally, with excellent potential for further growth. We are convinced that Russia will re-main a dominant player in the global agricultural markets, and we have been reinforcing our presence through continuous investment in several grain assets over the past 10 years.”

The export terminal is Louis Dreyfus’s first in Russia.

Louis Dreyfus also has five offices in Russia, and 10 inland silos, and total storage capacity in Russia of more than one million tonnes.

Cargill, in collaboration with New Hope Group and Hebei Bohai Investment Group, has launched a US$100 million oilseeds processing plant in China’s Hebei Province. It is expected to have annual processing capacity of 1.32 million tonnes and will help meet the growing demand for quality food products in northern China, Cargill said in an April 24 news release.

The Hebei Jiahao Grain & Oil Co. plant will produce high quality oil and animal feed, which will be marketed in northern China, including in the Beijing-Tianjin-Hebei region.

The announcement of the processing plant coincides with the opening of Hebei Jihai Port Co. Ltd. (Jihai Port), which manages bulk and general cargoes.

Jihai Port will serve the transportation and storage needs of the new plant for both domestic and international trade.

“These investments in the new oilseeds plant and Jihai Port reinforce Cargill’s strong commitment to China, a strategic market for us,” said Cargill chair and chief executive officer David MacLennan.

Cargill already has three oilseed processing plants in China, all situated in southern China and the Yangtze River delta.

This new plant will help it to better meet the growing demands of customers in northern China, a market of 300 million people.

The U.S. Department of Agriculture published new data in April indicating continued growth in organic industry, domestically and globally.

The USDA data released April 19 says there were 24,650 certified organic operations in the United States in 2016, and 37,032 around the world.

The 2016 count of U.S. certified organic farms and businesses reflects a 13 percent increase be-tween the end of 2015 and 2016, continuing the trend of double digit growth in the organic sector. The number of certified operations has increased every year since the count began in 2002.

The 2016 numbers represent the highest year-over-year growth rate since 2008.

The USDA accredits and oversees about 80 businesses and state governments that directly certify organic farms and businesses.

A complete list of certified organic farms and businesses recognized by the USDA is available through the Organic Integrity Database at organic.ams.usda.gov/integrity/.

Launched in 2015, the database discourages fraud by providing more accurate and timely information about operations certified to use the USDA organic seal.

The database also supports supply chain connections between buyers and sellers of organic goods.

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