Louis Dreyfus Company invests in South Asian poultry producer

Louis Dreyfus Company invests in South Asian poultry producer
Credit: Shutterstock.com/ Picsfive

Agricultural goods giant, Louis Dreyfus Company (LDC), is boosting its poultry presence in South East Asia by investing in Leong Hup International (LHI) Berhad, a major fully-integrated producer of poultry, eggs and livestock feed.

LDC has made a cornerstone investment in LHI’s planned IPO on the Malaysian stock exchange, Bursa Malaysia, where it will list all of its shares.

A leading “pure-play” poultry producer, LHI has developed a successful integrated livestock and feed milling model, with activities in Malaysia, Singapore, Indonesia, Vietnam and the Philippines. Its portfolio also includes a branded processed food business.

The IPO will support LHI’s intentions to continue to grow its integrated business model in newer markets, with a focus on expanding upstream operations.

“LDC’s cornerstone investment in LHI’s IPO is in line with LDC’s strategy to diversify further downstream and strengthen our footprint in growth markets by partnering with key players in the feed, food and nutrition value chain,” said Ian McIntosh, LDC’s Group CEO.

Thomas Couteaudier, Head of LDC’s South and Southeast Asia Region added: “The investment cements the rewarding commercial partnership that our two companies have enjoyed for many years.

“With poultry consumption in Southeast Asia continuing to grow, the backward integration of a livestock business like LHI provides better cost and quality control, as well as the opportunity for LDC to add greater value along the supply chain.

“This is an excellent fit and supports our mutual growth strategies in the region.”