Dreyfus deal to help UAE to achieve food security - minister

Published 2021년 3월 26일

Tridge summary

The United Arab Emirates (UAE) is strategically investing in commodity merchant Louis Dreyfus Company (LDC) as part of its food security efforts, with state-owned holding company ADQ set to acquire a 45% stake, marking the first external investment in LDC's 170-year history. The deal, anticipated to conclude by mid-2021, includes a long-term supply agreement for agricultural commodities to be provided to the UAE. The country has been leveraging agri-technology to enhance local crop production, with notable start-ups such as Pure Harvest and Smart Acres, and has achieved self-sufficiency in dates and cucumbers. Despite the challenges of the COVID-19 pandemic, the UAE has managed to maintain adequate food supplies, showing resilience in its food supply chain.

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Original content

LONDON (Reuters) - The acquisition of a stake in commodity merchant Louis Dreyfus Company (LDC) by Abu Dhabi’s ADQ is an important part of the emirates’ food security strategy, food and water security minister Mariam bint Mohammed Saeed Hareb Almheiri said. LDC agreed in November to sell a 45% stake to the state-owned holding company, the first outside investment in the family-owned commodity merchant’s 170-year-old history. The deal, which is expected to close by mid-2021, includes a long-term supply agreement to sell agricultural commodities to the United Arab Emirates, the companies said. “It is important as a country that is importing a lot of food that we have a handle on some of the supply chain aspects,” the minister said in an interview. LDC’s main shareholder Margarita Louis-Dreyfus said on Thursday that the ADQ deal would enable the acceleration of investments as the commodities trader reported a 66% jump in 2020 net profit. Almheiri said the 2008 food price crisis, when ...

Source: Reuters