Louis Dreyfus Company said Monday it would stand up a business unit dedicated to pulses as beans and lentils gain prominence as a plant-based protein.
The new business unit will serve growing demand in major importing markets in the Indian subcontinent, China and the Middle East, where pulses are considered a staple, according to a release. A greater focus on pulses also builds on Louis Dreyfus’ sustainable agriculture ambitions, with CEO Michael Gelchie noting 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 evolving nutritional and sustainability expectations from customers, reflected in both global production and demand growth,” Gelchie said in a statement.
The unit will initially focus on yellow peas, chickpeas, red lentils, faba beans and pigeon peas, according to a release. Louis Dreyfus plans to leverage its existing presence in the production hubs of Australia and Canada to meet the demand in India and other major markets such as Pakistan and Bangladesh.
The export market for pulses is expected to significantly grow after India removed retaliatory tariffs on chickpeas and lentils. Gelchie said the pulses category presents "geographic and operational synergies with LDC’s existing business activities," positioning the agricultural merchant to service global demand.
"[Pulses] have the potential to contribute significantly to earnings, leveraging our already strong research, trading and risk management capabilities," Gelchie said in a statement.
Saurabh Bhartia, who joins Louis Dreyfus as head of trading for pulses, will lead the group. Bhartia was previously head of pulses trading in India for Swiss commodity giant Glencore, according to his LinkedIn.
