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Louis-Dreyfus said Monday it will create a dedicated legume division as beans and lentils gain traction as plant-based proteins.
According to the press release, the new business unit will meet growing demand in key import markets in the Indian subcontinent, China and the Middle East, where pulses are considered essential. The focus on pulses further reinforces Louis Dreyfus’ sustainable agriculture ambitions, with CEO Michael Gelchie noting that these crops have “properties that improve soil health and reduce agricultural greenhouse gas emissions.”
“The decision to establish this new business unit is therefore fully aligned with our strategy to meet our customers’ evolving nutritional and sustainability expectations, as reflected in increased global production and demand,” Gelchie said in a statement.
According to the press release, the division will initially focus on yellow peas, chickpeas, red lentils, fava beans and pigeon beans. Louis Dreyfus plans to leverage its existing presence in production hubs in Australia and Canada to meet demand in other key markets such as India, Pakistan and Bangladesh.
The pulses export market is expected to grow significantly after India removed its retaliatory tariffs on chickpeas and lentils. Gelchi said the pulses category has “geographic and operational synergies with existing business operations in the least developed countries”, positioning agribusinessmen to meet global demand.
“(Pulse) has the potential to contribute significantly to our bottom line by leveraging our already strong research, trading and risk management capabilities,” Gelchi said in a statement.
The group will be led by Saurabh Bhartia, who joins Louis Dreyfus as head of pulse trading. Bhartia was previously head of pulse trading in India at Swiss commodities giant Glencore, according to LinkedIn.
