Wednesday, October 28, 2009
Dreyfus sees commods consolidation, sugar next
SAO PAULO, Oct 27 (Reuters) - Volatility in commodity markets tends to boost consolidation in the agriculture sector as firms require more capital and improved risk management,
the executive officer of French giant Louis Dreyfus said Tuesday. Companies in the sector also tend to diversify their portfolio in volatile times as a way to reduce dependence on a single product and limit the impact price fluctuations could have on the company as a whole, said Serge Schoen, also
Dreyfus' chairman of the board. "Volatility of commodities have doubled in 20 years ...
which means more risk and more capital (are needed) to afford this," Schoen said in an interview with international news agencies in Sao Paulo, after announcing the group's takeover of Brazilian sugar and ethanol firm Santelisa Vale.
source : Reuters
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