CHINA – Leading commodity trader and agribusiness giant Louis Dreyfus Company (LDC) recently marked a significant milestone with the groundbreaking ceremony for its new speciality feed production line in Tianjin.
This facility will focus on producing premium fermented soybean meal, aiming to boost protein levels and enhance the health and growth rates of various animal species, such as livestock and poultry.
Situated on an 11,000-square-meter plot near LDC’s existing oilseeds crushing plant in Tianjin, the new facility aligns with the company’s broader strategy to diversify its revenue streams through value-added products.
With China’s specialised feed protein market projected to grow at a 7% compound annual growth rate (CAGR), LDC is positioning itself to meet the region’s increasing demand for high-quality feed solutions.
The facility will utilise advanced fermentation technology that leverages multiple probiotic strains to improve the feed’s protein content, palatability, and digestibility.
This technology is expected to significantly benefit the local livestock and poultry farming industries by enhancing animal health and promoting more efficient growth.
“Through this investment, we aim to support the local livestock and poultry sectors by delivering high-quality speciality feed proteins that can contribute to more efficient farming practices,” said Shengshu Huang, LDC’s Chief Technology Officer for Animal Nutrition in North Asia.
The new production line is expected to be operational by the second half of 2025, helping LDC expand its presence in China’s rapidly growing feed industry. This investment is part of LDC’s larger commitment to strengthening its global food and feed market position.
Founded in 1851, Louis Dreyfus Company is a leading merchant and processor of agricultural goods, with activities spanning the entire value chain from farm to fork.
The company’s offerings for the animal feed and pet food sectors range from feed pellets to fish food and rapeseed meal, and this new facility is set to bolster its influence in Asia’s feed industry.
LDC recently published its consolidated financial results for the six months ending June 30, 2024. The results report resilient performance in the context of persistent geopolitical, macroeconomic, and environmental challenges.
Net Sales amounted to US$25.6 billion, Segment Operating Results reached US$1,284 million, with positive contributions from both business segments, and EBITDA settled at US$1,057 million.
Capital Expenditures were up 30% year over year as the Group continued to invest in pursuit of its strategic plans to further reinforce and diversify its business portfolio, geographic presence, and network.
“In a global trade environment marked by logistics challenges from new and ongoing geopolitical crises that disrupted trade flows and maritime shipping routes, changeable import demand dynamics and uncertain crop size prospects influenced by weather conditions, LDC grew its volumes shipped by 19.4% year on year,” said Michael Gelchie, LDC’s Chief Executive Officer.
The Group also continued to take significant and concrete steps to advance its commitment to shaping more sustainable value chains, such as promoting camelina cultivation in Latin America as a cover crop and raw material for lower-carbon renewable fuel and animal feed production.
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