Louis Dreyfus Commodities has entered into a joint venture agreement with Brooklyn Kiev LLC to develop and manage a multi-commodity terminal in Odessa as it expands in one of the world’s top grain exporters.
While Louis Dreyfus is already active in shipping grains from the Black Sea — a region which accounts for about a quarter of global wheat volumes — the terminal will help it to compete with rivals such as Bunge, which already has an export facility there.
Glencore has also sought to increase its presence in the Black Sea region and last year bought a 50 per cent stake in a Russian export terminal alongside Ukrainian agricultural producer Kernel.
Louis Dreyfus said that once completed in around August 2014, the terminal will have total grain storage capacity of about 240,000 tonnes.
“The substantial growth in Ukrainian grain production and exports, which is expected to continue in the coming years, driven by higher yields, increasing corn crops and more efficient farming operations, requires efficient export channels,” said Jean-Marc Foucher, chief executive of Louis Dreyfus Commodities for Europe and the Black Sea.