7 March 2023

Austrade untangles cotton exports for LDC

Austrade helped Australian cotton exporter, Louis Dreyfus Company (LDC), overcome challenges in Pakistan. Shipments were unblocked with port authorities.

Australian cotton has found a home in Pakistan after Louis Dreyfus Company (LDC) exported numerous bales last year.

LDC is a global merchant and processor of agricultural goods. The company has worked with Australian farmers and growers since 1913. It has exported Australian grain, cotton and oilseeds for more than a century. LDC Australia is today one of the oldest continually operating grain trading companies in the country.

Most importantly, LDC Australia provides sustenance for a growing population. It works to create fair and sustainable value for the benefit of current and future generations.

As a global business, LDC Australia is constantly looking for new markets. Pakistan was attractive because the country is the third largest cotton spinner in Asia and the largest exporter of cotton yarn. The company secured contracts to supply Australian cotton to Pakistani manufacturers.

LDC’s 2 cotton shipments arrived in Pakistan in December 2022. However, paperwork issues meant the shipments were barred from unloading. With Christmas approaching and port fees climbing, LDC turned to Austrade for help.

picture of fields

Multi-agency cooperation resolves paperwork issues

Austrade had encountered similar paperwork issues before and knew a team effort was needed to resolve them.

Austrade contacted the Department of Agriculture, Forestry and Fisheries (DAFF)’s Agriculture Counsellor in South Asia, Kiran Karamil. Austrade’s Country Manager in Pakistan, Azhar Shah, also reached out to his government contacts to expedite the process.

Solving the issues involved several rounds of interventions from Shah and Karamil. Austrade also worked closely with Australian-based DAFF staff, who are well-connected with their Pakistani counterparts.

After 3 weeks of work, including over Christmas, LDC’s import permits were approved. The shipments were finally cleared for unloading.

‘Austrade displayed superb regional network expertise, reaching out to the right people and working alongside others in South Asia, Australia and Pakistan,’ says Tony Geitz, LDC’s Managing Director for Australia.

‘Austrade understood our needs and worked across different areas of specialisation to achieve its deliverables in a timely and efficient manner.’

Austrade’s activities have now paved the way for LDC and other Australian cotton organisations to export in greater volumes to this region in future.

‘By clarifying the import issue with Pakistani officials, we made sure other exporters will not have the same experience as LDC,’ says Shah. ‘Shipments should now come through port authorities efficiently.’

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