Germany’s BayWa AG wants to become one of the world’s five-largest grain traders as it expands operations in Central and Eastern Europe (CEE), company CEO Klaus Lutz stated on Tuesday in an interview for Bloomberg.
BayWa plans to increase trading of grain and feed products to 40 million metric tons by 2016, approximately a third higher than last year, Klaus Lutz explained. BayWa purchased Dutch trader Cefetra in 2012 and has since opened offices in Madrid and Rome. It subsequently bought a trading company in Romania and is about to open offices in Moscow and Kiev.
“To become one of the key traders and to increase the volume, we need to be present in either Eastern Europe or especially in Romania,” the head of the German company stated.
BayWa plans to further its expansion in Romania and is negotiating the purchase of terminal facilities at the Port of Constanta, Lutz said. The company announced on March 19 that it would buy Bucharest-based trader Patberg International.
BayWa, which competes with companies such as Archer-Daniels-Midland and Cargill Inc., is building its business at a time when record harvests worldwide have sent prices for wheat and maize falling more than 20 percent in the past year. Global grain trading will reach a record in the marketing year that ends in June and will then decline, the London-based International Grains Council estimates. Romania is the third-largest wheat exporter in the EU, behind France and Germany.