By LEONARD GRAY – Managing Editor

DESTREHAN – Bunge Grain Elevator has temporarily idled production at its Destrehan facility of its soybean processing facility. The main grain elevator will continue to operate.

This action comes on the heels of a lawsuit filed by St. Charles Parish Assessor Clyde “Rock” Gisclair against the state Board of Commerce and Industry, which asserts the Board unlawfully granted an ad valorum tax exemption to Bunge for its $30 million grain transfer facility, built for its soybean processing plant.

However, Bunge was supposed to meet with Gisclair on the matter, and Bunge filed for an injunction against the Board, blocking them from meeting with Gisclair.

The statement from Bunge did not refer to the lawsuits, but gave as its reason for suspending soybean processing as smaller than anticipated U.S. soybean crop, coupled with rapid U.S. soybean exports.

“We realize the impact that idling a facility normally can have on a community, but we anticipate maintaining the majority of the employees,” Larry Clarke, Bunge’s senior vice president, said.

An estimate from Gisclair’s office is that Bunge owes some $384,372 per year, rather than being exempt from the tax for five years, renewable for another five years.

Carl Hausmann, president of Bunge North America, said of the suspension: “While it is always difficult to idle a facility, even temporarily, we believe this is the appropriate step to take until domestic supplies and adverse conditions in the export market improve.”