Louis Dreyfus, the 159-year-old family-owned commodities trading house, has highlighted the shift in global food demand towards Asia by entering merger talks with Singapore-based rival Olam International to create the world’s third largest agricultural trader.
Food consumption in Asia is booming as the emerging middle class of China, India and other regional nations demand a bigger and richer diet, shifting away from rice and other traditional staples into meat, dairy products and processed food.
News of the talks surfaced as the Louis-Dreyfus family comes under increasing pressure from the management of the trading house to find a way to raise fresh capital to fund its ambitions to expand the company.
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