South Louisiana grain farmers are expected to benefit from the presence of Louis Dreyfus Commodities’ move to the Port of Baton Rouge, according to LSU AgCenter economist Mike Salassi.
Louis Dreyfus, a new buyer in the area grain market, means more competition and that’s good for producers, Salassi said.
“Being a new additional market player on the buyer’s side, the existence of Louis Dreyfus in the grain market should have a positive impact on producer prices, resulting from an increase in demand,” Salassi said. “With the facility expansion currently being completed, Louis Dreyfus has the goal of significantly increasing the throughput at the facility to load grain on large ships for direct export.”
The company spent $150 million expanding and modernizing the grain facility at the port, including a new elevator that can handle up to 5.5 million tons of grains and oilseeds a year.