ROTTERDAM, NETHERLANDS — In the face of persistent geopolitical, macroeconomic and environmental challenges, Louis Dreyfus Co. BV (LDC) saw its net sales and income drop for the first six months of 2024 compared to the previous year.  

Net income, group share, was $489 million, down from $568 million in the same period a year ago. Net sales were $25.6 billion, down from $25.8 billion.

“In a global trade environment marked by logistics challenges from new and ongoing geopolitical crises that disrupted trade flows and maritime shipping routes, changeable import demand dynamics and uncertain crop size prospects influenced by weather conditions, LDC grew its volumes shipped by 19.4% year on year,” said Michael Gelchie, chief executive officer of LDC. “Our diverse and global business activities allowed us to deliver strong results for the first semester of 2024, as an overall recovery in crop sizes and ample stocks globally put pressure on prices and resulted in less volatile market dynamics compared to the first half of 2023.”

Segment operating results were $1.284 billion, down from $1.316 billion a year ago. LDC leveraged its global presence and market insights to manage risks and meet customer demand in an uncertain and complex global trade environment, LDC said.

The Value Chain segment’s operating results increased to $941 million from $919 million a year ago. The Grains & Oilseeds Platform had lower results despite higher volumes sold.

The wheat business contributed to the performance with higher volumes sold, supported by a larger crop in Argentina and further diversification of LDC’s origination and destination markets, the company said.

“Despite higher volumes sold compared to the same period in 2023, our soy and corn businesses were negatively impacted by fewer opportunities in a context of low volatility, combined with lower crush margins in China,” LDC said.

Processing margins decreased in North America with ample feedstock and biofuel availability weighing on prices.

“In Brazil, record low farmer selling combined with crop failures weighed on origination margins, while in Argentina activities and margins recovered from low 2023 performance,” LDC said.

The Group continued to invest in core merchandizing activities, with the construction and expansion of crushing capacity in North America to support core and new product lines.

LDC also continued to take steps to shape more sustainable value chains, announcing various collaborations to promote and implement regenerative agriculture and habitat conservation practices and continuing to drive decarbonization in its operations and supply chains.