LDC to further tap consumer market in China
Major agro-product merchant to ramp up R&D investment in local supply chain
China's vast consumer market, with increased demand for high-quality, diversified and nutritious products, as well as emerging new business models, are extremely important and present huge opportunities for Louis Dreyfus Co, its top executive said.
Louis Dreyfus Co is one of the major merchants and processors of agricultural goods in the world.
"Stable and sustainable investments and a growing consumer market demonstrate China's resilience and potential in a challenging global economy, making the country a key market for LDC, one in which we will continue to invest and work alongside our Chinese partners," said Michael Gelchie, CEO of LDC.
The company, he said, will step up investment in research and development capabilities and digitalization in China to support seamless, traceable and responsible supply chain management, while expanding and diversifying the downstream of the value chain to offer consumers premium and value-added products.
Resilience and innovation are key attributes of China's economy, and these offer an opportunity for LDC to meet the needs of the country's immense market and economic development, Gelchie said.
"China's reform and opening-up have contributed to shaping a growing and attractive market, by embracing international trade, facilitating foreign investment and engaging with new technology, production methods and talent," he said.
LDC has benefited from the signing or launch of multiple trade agreements, the Belt and Road Initiative, and the recent 24-measure guideline to attract more global capital and further optimize the country's business environment for multinational corporations, he added.
According to the Ministry of Agriculture and Rural Affairs, China has become one of the world's largest importers of agricultural products, and the country continues to play a key role in promoting global trade growth amid climatic and geopolitical challenges disrupting international trade.
The company has established a global R&D center in Shanghai to enhance its capabilities to offer customers and consumers more diverse and value-added products. In September, a new food industrial park, which is operated by LDC's joint venture, Fuling Food Technology Co Ltd, completed the first phase of construction in Nansha district of Guangzhou, Guangdong province.
"As in the past, we will continue to look for both State-owned or private sector partners with complementary competencies for win-win collaboration and growth in China across a variety of business lines, leveraging our global know-how and network," Gelchie said.
Jerrity Chen, head of North Asia Region for LDC, said the Chinese food market is driven by online platforms and digital technologies, which enable consumers to access information, reviews, recommendations and delivery services for food and drink products in a convenient manner, making it one of the fastest evolving and dynamic markets globally.
"Our R&D center in Shanghai is a key example of our commitment to continue exploring opportunities and developing new solutions in response to market needs," Chen said.
The company is trying to keep pace with the high-speed development of China's e-commerce trend by launching e-stores to distribute diverse products, Chen added.
Zhang Jianping, director-general of the Beijing-based China Center for Regional Economic Cooperation, said the latest supportive policies aimed at drawing more foreign investment, a shortened negative list for market entry and implementation of the Foreign Investment Law, have created favorable conditions for more foreign businesses to invest in the country.
