The Munich-based BayWa AG is seeking to become one of the world’s five-largest grain traders as it expands operations in southern and eastern Europe, especially in Romania, after the company bought a trading unit here.
“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,” Chief Executive Officer Klaus Lutz said in an interview for bloomberg.com, quoted by capital.ro.
He also said that BayWa plans to further its expansion in Romania and is in negotiations to purchase terminal facilities at the Port of Constanta with space to handle panamax-sized vessels. The company said last month it would buy Bucharest-based trader Patberg International.
European Union exporters are shipping wheat and barley at the fastest pace in at least a decade, according to license data from the 28-country bloc, as competitors Russia and Ukraine rein in grain shipments to stem rising food costs. Romania, Ukraine’s southern neighbour on the Black Sea, is the EU’s third-biggest wheat exporter, after France and Germany, Bloomberg notes.
The German company plans to increase trading of grain and feed products to 40 million metric tons by 2016, about a third higher than last year.