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Louis Dreyfus Elevator

Louis Dreyfus Elevator Source: www.lfbf.org/presidents Louisiana’s grain shipping infrastructure got its biggest boost in more than 50 years last week as the new Louis Dreyfus grain elevator officially opened at the Port of Greater Baton Rouge.
The new facility, formerly operated by Cargill, was renovated with more than $150 million in improvements, making it one of the premier grain handling facilities on the Mississippi River.
“It brings deep draft shipping back into the northern reaches of the Mississippi River,” said Jay Hardman, executive director of the port. “I don't think they could have come at a better time. Anything you read about regarding agriculture commodities involves shipping grain out of the United States. It's going to be a strong presence here and Louis Dreyfus has shown tremendous commitment to making our port one of the most significant along the Mississippi.”
Renovations to the grain elevator began in late spring 2011. Last week’s grand opening cleared the way for the elevator to begin taking delivery of the last of the state’s 2013 soybean crop. The real benefits however will be seen in the spring of next year when Louis Dreyfus will take in grain from 16 surrounding West Baton Rouge parishes.
“The new elevator will be able to handle up to 5 million metric tons of grain per year,” said Ronnie Anderson, president of the Louisiana Farm Bureau Federation. “From what they’re telling us that amount could increase to 6 million metric tons once all the planned improvements are completed. There’s no doubt this is a world-class grain facility & everyone from farmers to truckers to grain buyers to local businesses will benefit from it in the long term.”
The facility’s previous owner, Cargill, did make periodic improvements over the five decades it operated the elevator. Louis Dreyfus, however, made state-of-the-art improvements that complimented Louisiana’s move from a cotton and cane state to one firmly entrenched in grain production. Over the last 10 years Louisiana farmers have shifted their crops from cotton and sugarcane to many more acres of soybeans, wheat, corn and milo.
“Dreyfus predicated a lot of its improvements to mirror the shift in agricultural production here in Louisiana,” the Farm Bureau’s Anderson continued. “That kind of investment shows that production and marketing trends here in Louisiana have firmly established us as a leader in grain production across the South. Spending more than $150 million on this facility means Dreyfus and Louisiana farmers fully comprehend our position as a global player in world grain exports.”
According to the U.S. Department of Agriculture farmers must export about 35 percent of what they grow to maintain a healthy U.S. balance of trade. Such countries as China and Russia rely heavily on U.S. grain imports. China is the world leader in soybean imports, with more than 2 billion bushels of U.S. soybeans imported there each year. Corn imports to China and wheat imports to the former Soviet Union have increased 12 to 15 percent since 2003, according to the USDA.
“Port Allen will be our flagship export facility on the Mississippi River and a major part of our North American export program, bringing local products to world markets,” said Mikael Mörn, CEO of Louis Dreyfus Commodities North America, speaking at the inauguration ceremony. “We will start moving product immediately through the terminal and are positioning ourselves to sustain and expand our leading presence within the grains and oilseeds export landscape in the U.S.”
For area grain farmers who had to travel to other elevators during the 2012-2013 harvest season, the opening of the Louis Dreyfus facility means shorter wait times for their grain haulers and better prices for their commodities during the 2014 harvest.
“This is the closest elevator to my farm, so my trucks won’t have to drive 20 or 30 miles one way to deliver my grain next season,” said Travis Medine, a grain farmer from Iberville Parish. “There will be plenty of capacity here. This will just be an excellent cog in the wheel that will help things at harvest roll along more efficiently.” David Bollich, Dreyfus’s local commercial manager, said the facility still has several improvements in the works, including additional rail loading capability, as well as storage infrastructure expansions. “But soon you’re going to see Panamax ships loading here at our dock,” Bollich said. “We want to ensure Louisiana farmers the best opportunity to move their grain around the world. With their help we’ll establish Louisiana and this facility as world leaders in grain production and exports.”