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The Louis Dreyfus Company announced Monday that it would create a pulses business unit as beans and lentils become increasingly important as plant-based protein sources.
The new business unit will serve growing demand in key import markets in the Indian subcontinent, China and the Middle East, where pulses are considered a staple food, according to a press release. A stronger focus on pulses also reflects Louis Dreyfus’ ambitions for sustainable agriculture. CEO Michael Gelchie points out that these crops “have properties that improve soil health and reduce greenhouse gas emissions in agriculture.”
“The decision to create this new business unit is therefore fully in line with our strategy to meet customers’ evolving nutritional and sustainability expectations, which are reflected in both global production and demand growth,” Gelchie said in a statement.
The unit will initially focus on yellow peas, chickpeas, red lentils, broad beans and pigeon peas, a press release said. Louis Dreyfus plans to leverage its existing presence in the production centers of Australia and Canada to meet demand in India and other key markets such as Pakistan and Bangladesh.
The pulses export market is expected to grow significantly after India removed retaliatory tariffs on chickpeas and lentils. Gelchie said the pulses category offers “geographical and operational synergies with LDC’s existing business activities,” enabling the agri-trader to meet global demand.
“(Pulses) have the potential to be significantly accretive to earnings by leveraging our already strong research, trading and risk management capabilities,” Gelchie said in a statement.
Saurabh Bhartia, who joins Louis Dreyfus as head of pulses trading, will lead the group. Bhartia was previously head of pulses trading in India for Swiss commodities giant Glencore, according to his LinkedIn profile.
