No Sugar Shortage Anticipated
October 7, 2005
By Craig McEwen, The Forum

It is too early to tell what impact hurricane damage to Gulf Coast sugar cane may have on local sugar beet supplies and prices, said Jim Horvath, CEO of American Crystal Sugar.

About 75 percent of the area where Gulf Coast sugar cane is grown received hurricane damage. An estimated 10 to 20 percent of the sugar cane crop may have been lost, he said.

“That is devastating for them, but not for the sugar industry or sugar users,” Horvath said.

That’s because the U.S. Department of Agriculture has maintained sugar supplies by increasing the amount of sugar grown domestically and hiking imports from other countries, Horvath said.

“We think at the present time that the USDA has done what it needs to do to ensure that there’s going to be a reliable and adequate supply of sugar in the U.S.,” he said.

American Crystal Sugar

Any supply problems resulting from hurricanes Katrina and Rita won’t be known until early next year, he said.

Prior to the hurricane season, the USDA had already increased sugar imports to offset 2005 cutbacks in sugar beet acres planted and unexpected weather losses, he said.

This spring, 25,000 to 30,000 acres of sugar beets were destroyed by rain damage in the Red River Valley, Horvath said.

Sugar content looks good for this year’s Red River Valley sugar beet crop and tonnage per acre appears to be about average, Horvath said.

There’s a possibility that higher demand for Red River Valley sugar - as a result of the hurricanes - may bring higher prices, said Nick Sinner, president and CEO of the Red River Valley Sugar Beet Growers Association.

It all depends on how the USDA administers the current sugar program and how much sugar is imported into the United States, he said.

View All News