Al Dahra Shifts Strategy: Exiting Grains Trading to Focus on Farming Operations

UAE – Abu Dhabi-based agribusiness group Al Dahra Holding plans to withdraw from third-party grains and oilseeds trading as it pivots toward a strategy centered on its own farming operations across Europe, Africa and the United States. The move marks a strategic shift for the company, which has been an active participant in international grain trading, particularly in the Black Sea region. Following what it described as a comprehensive internal assessment, Al Dahra will concentrate on marketing commodities produced from its own farms rather than trading third-party volumes. “After a comprehensive assessment, the company will focus on marketing its own production,” Al Dahra said in a statement. The decision follows its earlier exit from Romania, after the business recorded three consecutive years of losses, a development previously reported by Bloomberg. Al Dahra, which is backed by Abu Dhabi sovereign wealth fund ADQ, operates farming assets spanning about 250,000 acres globally. Its production portfolio includes grains, oilseeds, forage and other strategic crops aligned with food security priorities in the Middle East. According to the company’s press office, the revised strategy will emphasize farming activities and the direct sale of commodities produced within its own asset base. The exit from third-party trading highlights the changing structure of the Black Sea grain market, where Al Dahra’s trading operations had been concentrated. Romania emerged as a major hub after Russia’s 2022 invasion of Ukraine disrupted traditional export routes, triggering a surge in Ukrainian grain flows through the Romanian port of Constanta. This led to an influx of international trading houses setting up operations in the country to capture new volumes. However, trading conditions have shifted again. As alternative export routes stabilized and Ukrainian volumes declined, overall trading activity in the region fell, intensifying competition among merchants for smaller cargoes. This environment has reduced margins and increased operational risk for traders without large-scale proprietary supply. Al Dahra opened its Black Sea trading office in 2020 and quickly became one of the major grains traders operating out of Constanta during the peak of regional rerouting. According to the company, the actions are part of its ongoing transformation and long-term global growth strategy. In 2025, Al Dahra actively expanded its farming footprint and agribusiness investments globally. In Angola, the company signed a memorandum of understanding with the Ministry of Agriculture and Forestry and state-owned GESTERRA to identify and develop up to 40,000 ha of irrigable land for the production of cereals, grains, legumes, and oilseeds, backed by a potential investment of up to USD 500 million. In East Africa, Kenya and Al Dahra agreed on an approximately USD 800 million investment to expand the Galana-Kulalu irrigation project by 200,000 acres, integrating advanced irrigation and sustainable farming practices to boost maize production and national food security. Al Dahra also committed US$ 30 million to modernising its Egyptian operations, including the production and processing of cereals such as wheat and corn, irrigation upgrades, and machinery modernisation to improve yields and export potential. Strategic partnerships also include access to Ukrainian agricultural export corridors. In mid-2025, Al Dahra entered an exclusive agreement with Getreide AG Ukraine to source between 100,000 and 150,000 tonnes of grain initially, with plans to scale beyond 500,000 tonnes. The collaboration sought to extend the company’s supply chain reach into one of the world’s most productive agricultural regions, complementing its presence in Serbia, Romania, Egypt and the United States. The company indicated that its withdrawal from trading is being handled carefully to avoid disruption. “The transition is being managed in full compliance with the relevant legislation to ensure transparency, compliance, alignment and continuity of all related services,” the company said.