Risk Management

In a challenging environment, with enduring supply chain disruptions due to climatic, macroeconomic and pandemic-related factors, LDC continued to rely on its market insight and risk management expertise to anticipate and mitigate risk, navigate market volatility, deliver for customers and secure solid financial results in 2021. 

The second full year of the Covid-19 pandemic was once again marked by substantial market volatility, as well as widespread supply chain disruptions affecting both ocean freight and inland transport logistics. In addition, extreme weather compromised crop production in several geographies and further fueled volatility, while currency fluctuations – in particular the Brazilian Real’s devaluation – contributed to higher soy, corn, cotton, coffee and sugar prices. 

In this context, by intensifying our already rigorous risk management and governance mechanisms, such as holding more frequent high-level committee meetings to review risks imbedded in our various businesses, we continued to navigate uncertainty, especially in relation to the ongoing pandemic, and sustain a strong financial performance.