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Western
Sugar growers won't be in suspense much longer.
The
results of a feasibility study looking into a four-state grower
cooperative purchasing the sugar company will soon be available to
growers, according to the attorney representing the group.
Randon
Wilson, who is representing the Rocky Mountain Sugar Beet Growers
Cooperative in a possible purchase of Western Sugar, said they are
progressing well on the financial portion of the feasibility study and
should have the initial study completed this week. "We will probably
need more information from Tate and Lyle before the document is
completed," he explained. "Tate and Lyle representatives have
said they will provide us with whatever information we need to complete
the feasibility study," Wilson added.
The
attorney said they hope to have a purchase price nailed down by the end of
September - if not sooner. In the meantime, they are still scoping out
what the financing costs for growers would be.
"We
are working on options for the growers that will allow them to finance the
purchase of their delivery rights. Some will be able to pay the amount out
of their pockets, others will need financing," he explained. "We
want the weak growers to be able to purchase delivery rights."
Wilson
said the delivery rights should serve as collateral for the loan to
purchase them from the cooperative. "Government guarantees are also
available for those loans," Wilson explained, "which should
really help some of the growers."
The
attorney added they are also trying to create a "pooling of funds to
help finance the growers."
Once
the study is completed and they determine what the financing costs will
be, a prospectus will be given to each grower who indicated an interest in
participating in the cooperative.
"The
growers will have to make an investment in delivery rights. The prospectus
will explain the nature of that investment," Wilson said.
Although
the mail has tapered off, Wilson said he is still receiving money from
growers who wish to pledge acres to the cooperative.
"The
letters had to be postmarked by September 1," Wilson said, adding
that some letters had wrong addresses or the growers couldn't respond any
sooner for one reason or another.
Between
1,000 to 1,100 growers and landlords in Colorado, Nebraska, Wyoming and
Montana have pledged 172,000 acres to the cooperative. Western Sugar
contracts 185,000 acres each year.
Wilson
commented he is quite pleased with the response. "At this point, we
are ahead of where we were with the Amagulated Sugar purchase by the Snake
River Growers Cooperative."
"The
growers realize how important sugar beets are in their areas," Wilson
said of the support of the cooperative. "They need the sugar beets
for an alternative crop and most of the growers realize that."
Wilson
added, "There has been strong leadership in the cooperative and good
support from the community and Main Street businesses. It has really
helped moved everything along." |