Al Dahra exits grain trading

Source:  Bloomberg
Al Dhafra

Abu Dhabi-based agribusiness group Al Dahra has announced its exit from third-party grain and oilseed trading, shifting its focus to its own farming operations across Europe, Africa, and the United States.

The company stated that after a comprehensive business review, it will concentrate on marketing and selling its own production. This decision follows Al Dahra’s exit from its Romanian operations after three consecutive years of losses.

Backed by Abu Dhabi’s sovereign wealth fund ADQ, Al Dahra farms around 250,000 acres globally and plans to allocate resources primarily to agricultural production.

The strategic shift reflects changes in the Black Sea market, where the company previously concentrated its trading activities. After a surge in Ukrainian grain exports via Romania in 2022, trading volumes have since declined, intensifying competition among international traders.

Al Dahra launched its Black Sea trading office in 2020 and was among the top grain exporters through the port of Constanța, which became a key hub following shifts in regional trade flows due to the war in Ukraine.

The company emphasized that the transition is being managed in full compliance with relevant legislation and forms part of its long-term global growth strategy. Meanwhile, the UAE, like many Middle Eastern nations, is boosting agrifood investments to enhance food security and reduce reliance on imports.

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