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Sugar beet plant needs millions to survive

March 31, 2000
 

MOSES LAKE, Wash. (AP) -- The Pacific Northwest Sugar Co. needs $5 million to $10 million or its sugar processing plant will be closed, a company official said.

Jay Bair, of Pacific Northwest's board of directors, said time is running out to get the money.

"If they don't get something done in the next few weeks, I think they'll fold up the factory and sell the pieces," he said. "It's like running out of gas with one lap left in the race."

The $100 million plant opened in 1998, but was plagued during its first year with mechanical problems that left some of the first harvest rotting in piles. Plant officials now think they have most of those problems solved.

But the plant is faced with a lack of money for long-term operations.

The 1999 sugar beet crop of 585,000 tons produced less sugar than hoped. Plus, the sugar that was produced is worth less now because of a nationwide surplus.

The plant employs more than 300 workers during its busiest processing times in winter.

Plant officials last week told the 60 growers in the cooperative to delay planting this year's 25,000-acre beet crop because there might not be enough money to keep the plant open.

Bair, who is also a grower, said farmers probably will not plant beets after April 10.

But farmers will still have time to plant other crops on land originally meant for beets if they're told the plant will close.

"We're in the wait mode. We've put a lot of investment in this and there is a lot to be lost," said Jerry Hodges, a Quincy grower. "We can always plant other crops."

Hodges, like other growers, could also be left holding expensive beet machinery that can't be used for other crops if the plant closes. He said a new beet harvester costs $60,000, while a defoliator, the machine that cuts the leaves off the beets before they're pulled from the ground, runs about $20,000.

Hodges is optimistic last-minute funding will be found to keep the plant open.

"I've heard some rumors that something good is in the works," Hodges said.