Dreyfus, a group with $63 billion revenue a year, is buying Romanian wheat again after almost a decade.
Dreyfus is known as one of the members of the ABCD group, comprising the leading grain traders of the world. The ABCD group members are ADM ($89 billion revenue a year), Bunge ($61 billion), Cargill ($136 billion) and Dreyfus ($63 billion).
The group is back in Romania indirectly via a partnership with Agricover, the group controlled by businessman Jabar Kanani.
Under the agreement, Agricover buys grain from local farmers and sells it to Dreyfus in Constanta harbor, and Dreyfus then delivers it to the end customers, industry sources say.
Dreyfus operated in Romania back in mid nineties, when deregulation started on the grain market, but the volumes traded back then were not large enough to make the segment attractive. It only had an office in the country and no storage infrastructure and the negative financial results and lack of attractiveness of the market at the time made it shift focus towards consolidation on the former Soviet countries.
The Romanian wheat was sold at $261.97/ton to $263.35/ton at the auction to which Dreyfus participated.
(English version by Loredana Fratila-Cristescu)