| Approximately 80 members of the Nebraska Non-Stock Sugar
Beet Growers Association received updates on the past years activities
and some forecasts on the coming year during the annual meeting Tuesday
afternoon.
Randy Hoff, a Mitchell farmer who is also a director and vice chairman
of the International Affairs Committee of the American Sugarbeet Growers
Association, explained some of the issues facing the sugar industry on the
national level and what actions may be taken to resolve them.
The topics received attention from growers attending the annual
American Sugarbeet Growers Association recently held in San Antonio,
Texas.
According to Hoff, the sugar industry plans to deal with the stuffed
molasses issue before anything else.
Its a blatant circumvention of regulations, Hoff said, explaining
approximately 150,000 to 200,000 tons of sugar were imported by that
method in 2000.
It will be the death of the domestic industry if we cant stop
that loop hole, Hoff said. Everyone and their dog wants in on it
because it is so lucrative.
Companies bypass U.S. tariffs by saturating molasses with sugar before
transporting the mixture into the United States. The sugar is then refined
out and passed into the domestic market tariff free. This has been one of
the major factors in an over supply of sugar in the domestic market
place.
Another issue is the importation of sugar from Mexico. Currently, it
imports approximately 25,000 tons of sugar annually. However, under the
NAFTA agreement, by 2008 there will be no tariff on Mexico sugar and
imports could reach 250,000 tons per year.
Hoff said there are two options available to solve the problem with
Mexicos imports. One is to negotiate with the new administration, and
the other is to wait and initiate the second tier tariff duty by proving
damage to the domestic market. However, that could take years.
We really want to negotiate something that is best for both
parties, Hoff said. One proposal is for the United States to help
Mexico convert their ethanol plants to process sugar cane.
Hoff said one thing is certain, nothing will be done on the
international scene until the stuffed molasses issue is resolved.
He also said the United States has to be cautious about new trade
agreements, including the Free Trade Agreement of the Americas (FTAA).
We have to watch our borders in those negotiations, he said.
In other reports to the meeting, Kevin Hall, vice president of the
Rocky Mountain Sugar Growers Cooperative gave a status update on the
co-ops activities.
He said subscribed acres are just below 150,000 acres, and the co-op
isstill hoping to reach the full 185,000 acres possible in the four states
Colorado, Montana, Nebraska and Wyoming.
Farmers interested in growing for the co-op may contact Hall or Robert
Busch, Mitchell farmer and a co-op board member, for information. Several
options are available, including pool acres, late subscriptions, and
extended subscriptions.
Were looking at all possibilities to finish this, Hall
said.
Kent Wimmer, director of agriculture for Western Sugar, reviewed the
2000 season. He said it was a record year for the company in more ways
than one. The 187,000 acres contracted made it an all time record high for
the company. Another record was set with the 186,000 acres planted. But it
was also a record with 15 percent replants due to the weather.
Tonnage was up, and the sugar content was looking good until the frost
of early October that halted any increase in sugar content.
Were staging ourselves well if Mother Nature gives us a
chance, Wimmer said.
He noted the recent increase in sugar prices is a bright spot on the
horizon for the industry.
In order to solve some of these problems, the industry has to get
back in balance, he said.
Hoff said he and Busch will join other sugarbeet growers in Phoenix
later this month to begin plans for bringing that balance back. In March
the beet producers will meet with cane growers to formulate a plan to take
to Congress.
Its going to be another interesting year filled with lots of work
to ramp up for the 2002 Farm Bill, Hoff said.
Three new association board members were also elected Tuesday. Kevin
Hill of Bridgeport will represent Box Butte County where his beets are
grown, Nick Lapaseotes will represent the Bayard district, and Rod Adams
will represent the Scottsbluff district. |