World Grain - February 2017 - 12

NEWSREVIEW

Zen-Noh Grain partners with Amaggi, Louis Dreyfus in joint venture
SÃO PAULO, BRAZIL - Amaggi and Louis Dreyfus Co. (LDC) on
Jan. 16 signed an agreement with Zen-Noh Grain Brazil under which
the latter will become an equal partner in the companies' existing
Brazilian joint venture.
Each of the companies will hold a 33% stake in the joint
venture, which comprises the grain origination and port terminal
businesses operated by the wholly owned subsidiaries Amaggi & LD
Commodities S.A. and Amaggi & LDC Terminais Portuários S.A.
in the Brazilian states of Maranhão, Tocantins, Piauí, and Bahia (a
region known as Matopiba).
"With this incorporation, the joint venture will be able to count on
the experience of one of the world's leading cooperatives, which will
contribute to operations in one of the most promising grain producing
regions in Brazil," Louis Dreyfus said. "It will also strengthen the
partnership in Tegram (Grains Terminal of Maranhão), a port that
represents one of the main alternatives to the export routes of the
country's south and southeast regions."
Zen-Noh Grain Brazil is the Brazilian subsidiary of Zen-Noh Grain
Corp., which is the subsidiary of Japanese agricultural cooperative
Zen-Noh (National Federation of Agricultural Cooperative
Associations). The company exports about 13 million tonnes per year
of grains, beans and their byproducts through its export elevator in
the U.S. Gulf. Zen-Noh is one of the largest agricultural cooperative
organizations in the world with its 993 member cooperatives, and is

Amaggi, Zen-Noh and Louis Dreyfus will have a 33% share in a Brazilian
joint venture that includes grain origination and port terminal businesses.
Photo courtesy of Louis Dreyfus.
in charge of supplying agricultural inputs and marketing agricultural
products with more than $50.5 billion of consolidated revenue.
Founded in 1977, Amaggi is present in all regions in Brazil, as
well as in Argentina, China, the Netherlands, Norway, Paraguay and
Switzerland. Currently, the company is active in logistics, energy,
agricultural production, commodities and shipping, and directly
employs more than 4,800 people.

IGC forecasts lower wheat production in 2017-18
LONDON, ENGLAND - In its preliminary outlook for 2017-18
world wheat supply and demand, the International Grains Council
(IGC) on Jan. 19 projected world wheat production to decline about
2% from the record outturn estimated for the current year. The
IGC preliminarily projected the 2017-18 world wheat crop at 735
million tonnes, down 17 million tonnes from 752 million tonnes
as its estimate for 2016-17. The IGC noted should its projection be
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The projection was based on yields broadly in line with the longterm trend and the IGC's projection for world harvested area for
wheat.
The IGC projected the world wheat harvested area in 2017-18
at 221.3 million hectares, down just 300,000 hectares from 221.6
million hectares in 2016-17 and compared with 224.7 million
hectares in 2015-16.
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wheat farmers, 2017-18 area will likely stay high elsewhere, helped
by government support measures in some countries, as well as
movements in foreign exchange markets," the IGC commented.
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a steep drop in U.S. winter wheat area with sowings estimated at
13.1 million hectares, a 108-year low. The IGC added, "With spring

wheat likely to face strong competition from alternatives, including
soybeans, all-wheat harvested area is projected to decline by 8% to
16.3 million hectares." The IGC projected Canadian harvested area
at 8.6 million hectares, down 3% from last year.
The IGC projected Russian harvested wheat area to increase about
1% to 27.1 million hectares and projected Ukrainian harvested area
to increase 2%, to 6.7 million hectares. China harvested area was
projected to be virtually unchanged from last year at 24.2 million
hectares, and India's harvested area was projected to expand 4%
to 31.5 million hectares. The E.U.-28 harvested wheat area was
projected at 26.8 million hectares, unchanged from 2016-17.
The largest expansion in harvested area was projected for North
Africa. Harvest area there was projected at 7.1 million hectares, up
16% from 6.1 million hectares in 2016-17.
World wheat consumption in 2017-18 preliminarily was projected
at 737 million tonnes, down 1 million tonnes from a record 738
million tonnes in the current year, "as a dip in use for feed just about
offsets expanding food demand, seen touching 500 million tonnes
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quality harvests, feed (and residual) use in the United States and
Canada will likely fall back from this season's levels. Demand in
parts of Asia could also contract, but much will depend on prices
relative to alternatives."

Romania names leader of agriculture ministry
WASHINGTON, D.C., U.S. - Petre Daea, former Minister of
Agriculture in Romania, has been named head of the country's
Ministry of Agriculture and Rural Development.
According to media reports, Daea is a supporter of biotech crops,
having expressed his belief that biotechnology should be addressed
as a collaborative effort between producers and researchers.
12

Daea served as Agriculture Minister for a six-month term in
2004 and as Secretary of State from 2002-04 within the Ministry of
Agriculture.
He also has served as a member of the Romanian Parliament three
times: as senator from 2004-08 and 2008-12, and as a deputy from
2012-16.
February 2017 / World Grain / www.World-Grain.com

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World Grain - February 2017

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