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Sugar co-op pushing for refinery's purchase

September 11, 2000
 
SCOTTSBLUFF - Rick Dorn is spreading the word to sugarbeet growers and businesses in the Nebraska Panhandle: work together to buy a Scottsbluff sugar refinery now on the market.
Dorn, a farmer and businessman from Hardin, Mont., is president of the new Rocky Mountain Sugar Growers Cooperative, which was formed earlier this year to explore the purchase of Western Sugar Co. from Tate & Lyle, its parent company.

"I'm updating the growers and the community on our status," Dorn said Friday. "This is the first community that has invited me, and I think that shows a lot of vision, energy and enthusiasm on their part."

Dorn said that in addition to the update, he is encouraging the community and lending agencies to be involved and pushing growers to continue to move in the direction they have taken.

This is the right time for growers to purchase the sugar processing company, he said.
"This isn't just the growers' burden," Dorn said. "It is an investment of the whole community. It affects a lot of people, from the tax base to the factory workers. We all need to pull together."

According to Dorn, the trend has been toward cooperative ownership of sugar processing facilities. Over the past 25 to 30 years, he said, grower co-ops have acquired approximately 65 percent of domestic sugar production. With the purchase of Western Sugar, that would increase to 75 percent.

Tate & Lyle has been negotiating with other parties about the sale of the company's six sugar factories in Scottsbluff; Bayard; Fort Morgan, Colo.; Greeley, Colo.; Billings, Mont.; and Lovell, Wyo.

Tate & Lyle first indicated in May that it was considering selling the plants because a world sugar surplus had rattled the sugar industry, forcing prices to drop by 25 percent over the past year.

The company has 600 employees and about 185,000 acres under contract in the four states.
By next week, the cooperative hopes to have a solid basis from which to move forward with a letter of intent to Tate & Lyle, Dorn said.