The Dutch green coffee and agri-commodity trader says it has successfully navigated increasing demand and poor coffee harvests in the first six months of 2022
Coffee remains a key growth product for LDC as it seeks to scale its business in Vietnam and India | Photo credit: LDC
Netherlands-based Louis Dreyfus Company (LDC) has achieved half-year revenue growth of 45% in its merchandising segment, which comprises the coffee, cotton, rice and sugar commodities.
The green coffee trader said it distributed less coffee in the six months ended 30 June 2022 than the corresponding period in 2021 due to constrained global coffee supply. However, LDC said consumer demand for coffee continues to rise.
The company said the coffee remains a key growth product for the company as it seeks to scale its business in the second half of the year with a focuse on the Vietnamese and Indian markets.
In August 2021 LDC announced a joint venture with Polish private label coffee company Instanta to build an instant coffee plant in Vietnam, which commenced construction earlier this year. The business is also expanding its coffee mill in the southern Brazilian state of Minas Gerais.
Founded in 1851, LDC is an agri-commodity trading business and a leading global trader of green coffee. The business distributes a variety of coffee products, including wholebean, ground, instant and its own specialty brand, Zephyr, to wholesale clients globally.
“In the current turmoil impacting global agri-commodities markets, LDC’s mission to bring the right product to the right location, at the right time, was all the more critical. In this challenging environment, our experienced and committed teams continued to work with business partners worldwide to keep key supply chains moving safely, reliably and responsibly, from farmers to end consumers,” said Michael Gelchie, CEO, LDC.
LDC achieved total revenue growth of 26% in the first six months of 2022 to reach $30.3bn.