The loan to the Dutch company LDC will be used by its Ukrainian subsidiary to acquire grain-hopping railcars


Image: LDC will set up its own railcar logistics business in Ukraine. Photo: Courtesy of the European Bank of Reconstruction and Development.

The European Bank of Reconstruction and Development (EBRD) has agreed to provide $35m (£28m) in loan to Dutch processor of agricultural goods Louis Dreyfus Company (LDC), for its Ukrainian subsidiary.

LDC has partnered with the Bank since 2000. The loan from EBRD will be used by a railcar logistics business in Ukraine. The funding will help the company acquire up to 1,000 grain-hopper railcars which could significantly improve grain-handling logistics for the company.

The new railcars will help in reducing CO2 emissions by up to 8,510 tonnes annually

EBRD claims that the new railcars can reduce the volume of grain transported by trucks and can in turn help in lowing CO2 emissions by up to 8,510 tonnes every year.

LDC will also be able to diversify its means of transporting grains from the country’s agricultural areas to its ports.

As Ukraine is growing its importance as a global market for grain sourcing, the latest EBRD project is expected to strengthen the trend by the supporting LDC’s operations.

Ukraine is expecting a grain harvest of more than 72 million tonnes this year, of which more than 50 million tonnes will be exported. The domestic grain-hopper railcars in the country, which carry about 70% of all the grain across the country to its seaports for export, have been heavily depreciated.

With the addition of new grain hoppers, grain-handling logistics could drastically improve the country and will strengthen the country’s competitiveness in global markets.

In August this year, LDC announced a partnership with Meituan, a Chinese e-commerce company, to promote its new packaged cooking oil brand Chef Fu.

The Chef Fu brand is claimed to have been tailored to Meituan’s B2B channel, leveraging its last year investment on crushing plant in Tianjin, along with its global oilseeds and value chain expertise.

Presently, the e-commerce firm aims to be a one-stop solution for restaurants and catering industry players to purchase quality products, including oils, food and beverages, seasonings, meat and poultry.