The Rocky Mountain Sugar Growers said in a release that Imperial Sugar, parent company of Holly Sugar, is not viable, citing the companys recent decision to file Chapter 11 bankruptcy.

The cooperative encouraged growers in the Gering, Neb. area, where both a Western Sugar plant and a Holly Sugar plant exist, not to sign contracts with Holly Sugar, suggesting growers may not get paid by the company for their 2001 crops. They sent out the first volley, and (Imperial Sugar) responded with informational meetings, Fullmer said. The Chapter 11 information is available for people to see, Fullmer said.

Growers should make sure they are getting all the facts before making a decision, not just one side or the other. This mostly affects the North Platte Valley in Nebraska, Fullmer said, but it does have some impact on the total cooperative effort.

The Rocky Mountain Growers Cooperative, which has members in Nebraska, Colorado, Wyoming and Montana, is set to purchase the Western Sugar factories from Tate & Lyle North America Sugars.

In its release, the Rocky Mountain cooperative said Imperial Sugar is trying to discourage growers from the Western Sugar buyout, encouraging them to grow for Holly Sugar instead. Fullmer said sugar beet acreage is down enough that acres need to be brought in, and these growers would have that option. The cooperative was saying they had funding for a buy out when in fact they did not, Fulmer said.