XLD COMMODITIES STORY
Lamenting a lack of ability to forward sell or get a price a canola crop in Tasmania, old colleagues Paul Willows and Lachie Stevens resolved to do something about it.
This sowed the seed for the idea of XLD.
In their past lives, both men were Louis Dreyfus employees, a company they valued greatly. XLD simply represents ‘ex Louis Dreyfus’ and was planned to be a placeholder for the time being. Like all good temporary names, it stuck. Originally XLD Grain, the name has shifted with the growth of the business and industry to become XLD Commodities.
Both men had backgrounds in trading and finance. With experience in risk management and volatile global markets, they wanted to share their knowledge with Tasmanian farmers. In turn, empowering growers and building grower confidence.
This saw the inclusion of local independent farm supplies and agronomy company, TP Jones & Co into discussions to provide a trusted avenue to growers with a sound knowledge of how things worked in Tasmania.
The three parties commenced trading as XLD Grain Pty Ltd as equal shareholders in 2010.
While price surety may sound like industry jargon, the idea behind it is simple:
Provide customers with a locked in price, for outputs and inputs, up to three years in future. In turn, providing knowledge and security.
In an industry that is over 200 yrs old, earning trust and respect can be difficult, and this proved a challenge for XLD. On top of being a new business, they were also introducing a new concept. The idea of locking in contracts three years in the future was uncommon to most Tasmanian farmers. This meant proving it was a positive step towards risk management, took some time.
It was also challenging as XLD relied on others to provide commercial storage options to allow the delivery of forward contracted grain and oilseeds to take place.
Commencing with a team of one, with backup support from the shareholders, XLD were able to build a strong sales book, predominantly with mainland sourced grain. These products were generally specialty milling wheats or where Tasmanian production was well short of demand.
In late 2021, XLD Commodities took on the lease for the storage and handling assets of local farmer Co-op, TAP Agrico. This saw a rapid expansion in the amount of local grain and oilseeds XLD were able to buy and store.
After acquiring a part of the storage site, XLD Commodities is investing in increase storage and building capabilities in logistics to provide further efficiencies for grain consumers in Tasmania.
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XLD have quietly made a name for themselves, building valuable relationships with farmers and modestly expanding to support growth in the industry.
However, the potential to continue to broaden Tasmania’s agricultural offering is huge, and XLD will be a constant pillar of support in this evolution. XLD's goal is to become a key piece of the Tasmanian agricultural community, achieving this by growing a passionate and inspired team, with genuine interest in agriculture and expanding the reach of Tasmanian produce.
The young and enthusiastic team share the common goal of growing the agricultural industry, the business and themselves. XLD is committed to continuing to develop career pathways and building the future for Tasmanian agribusiness.