American Crystal Sugar Co. will complete the processing 2000
crop beets within the next week, officials say, but the new
concern is with the 2001 crop.
Jeff Schweitzer, spokesman for the Moorhead-based
cooperative, says the crop is 97 percent processed. Completion
dates for the factories include: Hillsboro, N.D., May 10; East
Grand Forks, May 12; Drayton, N.D., May 15; and Crookston and
Moorhead factories, May 15.
Crystal in mid-April increased its projection for payments
on the 2000 crop to $32.50 per ton per average gross beet
payments -- up $1 per ton. That projection is still lower than
the $37.31 per ton paid for the 1999 crop. Payments for the
1999 crop started at about $34 a ton, but crept upwards
through the year until the final payment estimate was made at
the end of the fiscal year in August 2000.
As for the current crop, Schweitzer said planting stood at
only 5 percent complete as of Tuesday. "Ideally we'd like
to see sugar beets planted by the third week in April,"
Schweitzer said.
After this past weekend's rains, many farmers in the region
won't be in the field for another week.
In other developments, Crystal has internally announced
reductions in capital expenditures. The board has budgeted $21
million for capital expenditures for the current, 2001 fiscal
year, which ends Aug. 31. That's half of the $42 million spent
in fiscal year 2000." The capital expenditures for
subsequent years are expected to stay in the $17 million to
$20 million," Schweitzer said. "A lot of that will
be for necessary replacement."
Capital expenditures in previous years were $57 million in
1999, $99 million in 1998 and $70 million in 1997 all part
of an aggressive expansion programs.
Prior to that expansion, Crystal's annual capital
expenditures ranged from $40 million to $45 million from 1992
to 1996. He said the company will likely make no significant
increase in capital expenditures before the sugar industry
rebounds. |