News & Events - Archived News

After all, he serves as president and chief executive officer of a 100-year-old company that does $120 million in annual sales, has an annual payroll of $12 million, makes $40 million in payments to sugar beet growers each year and contributes to a number of community organizations.

But the past year hasn't exactly gone the way Hetzler, or any other company executive, would have preferred.

In 2000 alone, Monitor Sugar has dealt with a patent infringement lawsuit against the company, another threatened lawsuit over environmental issues, a fine from the Michigan Department of Environmental Quality for violating a discharge permit, and constant complaints about sugar beet trucks on the roads and the stench of beet processing in the air.

"It's a tough business to be in," Hetzler said. "These kinds of things come with the territory, and if you endeavor to keep everyone happy at all times, you'll go crazy."

Hetzler is also dealing with the lingering effects of an 8-million-pound molasses spill at the plant in September 1999, and a global market that has seen sugar prices dip to 27-year lows.

"I think we've seen the bottom of the market and I think we're through the worst of it," Hetzler said. "There have been times like this before, but it all runs in a cycle and farmers know that.

"That is why I believe the key to the future is for growers to hang in there with the sugar beet crop. As long as they are willing to stay in, we'll all be better off in the end."

Bay City farmer Ray VanDriessche, who grows sugar beets for Monitor Sugar and serves as president of the American Sugarbeet Growers Association, isn't so certain that the problems facing Monitor Sugar or the sugar industry in general are part of a cycle.

"This has been a tough year for Monitor Sugar and its growers," VanDriessche said. "This so-called cycle is beginning to look more like a trend for farmers.

"I understand that the global market is struggling right now, but the cost to produce sugar beets hasn't gone down any and growers certainly aren't making money off sugar beets right now," VanDriessche said.

"It's all right to keep growing sugar beets, but if you don't get an adequate return, you have to think about getting out," VanDriessche said.

According to Paul Pfenninger, vice president of agriculture for Monitor Sugar, the total payment to growers for the 1999 sugar beet crop was $32.92 per ton, a decline of $2.05 per ton from the payment made for the 1998 crop.

VanDriessche said Monitor Sugar's growers were told their total payments for the 1999 crop would be $2 to $3 higher than Michigan Sugar Co.'s payments to the Great Lakes Sugarbeet Growers. Those growers received total payments of $32.69 per ton for their 1999 crop, a difference of only 23 cents.

Pfenninger said the molasses spill, which set the company back 30 days and caused production to continue through March, resulted in less sugar extraction from beets that were left in storage piles for too long.

"A lot of those beets spoiled as well," Pfenninger said.

Despite the lower payment levels, Hetzler believes Monitor Sugar's growers are still relatively content.

"They like growing sugar beets and for many, sugar beets are still the mortgage lifter in the Saginaw Valley," Hetzler said.

Hetzler's optimism, however, clearly goes beyond the growers.

"Every facet of this community is tied to this plant," he said. "This company generates wealth whether it be through our payroll, payments to growers or contributions to community organizations."

Monitor Sugar employs between 230 and 270 full-time employees. During harvest and production seasons, the plant employs between 600 and 700 people.

Aside from being one of Bay County's largest employers, Monitor Sugar is also one of the largest taxpayers, paying more than $1 million in taxes annually.

"I think our company will continue to grow, but over the past 10 years we have invested millions of dollars in capital improvements into this plant," Hetzler said.

This includes a desugarization operation installed in 1998, that allows Monitor Sugar to extract the remaining sugar from molasses, which is a byproduct of sugar beet processing.

"Now, we need to settle down a bit and operate without too many big changes," Hetzler said.

And 100 years from now, Hetzler says he believes Monitor Sugar will still be producing sugar.

"Consumers will always need sugar, and I don't see any reason why this plant won't continue to operate for another century," Hetzler said.