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ProGold cuts four jobs as Cargill reduces division work force
By Jack Sullivan, Associated Press Writer
June 8, 2001
 
FARGO, N.D. (AP) -- Four workers at the ProGold corn milling plant near Wahpeton are being laid off because of tough times in the corn sweetener industry, officials said Thursday.

The cuts are part of an across-the-board move in Cargill Inc.' s North American Sweeteners division, which is reducing its work force by 10 percent due to sluggish market growth, a slow national economy and high gas prices, company officials said.

ProGold now has 110 permanent workers, General Manager Richard " Red" Geurts said Thursday. ProGold is owned by Golden Growers, the Minn-Dak Farmers Cooperative of Wahpeton and American Crystal Sugar Co., based in Moorhead, Minn.

Geurts said the plant had been reducing its work force gradually over the last year, by not filling some jobs as they came open. He called that a " prudent business practice" that helped cushion the layoff blow to the plant.

Geurts said three of the layoffs were effective this week while the fourth worker will stay on the job until later this month.

He said summer is the time of highest demand for the plant, which is operating at its capacity of 85, 000 bushels a day.

The ProGold plant has had a rocky year, including a six-week winter shutdown prompted by sluggish demand for corn sweetener and high fuel costs. Plant employees worked on maintenance and training during the shutdown, which ended in March.

When they announced the plant' s reopening, Cargill officials warned that the business climate for corn sweetener producers was still tough and they did not rule out production slowdowns later in the year.

" It remains a very tough business environment, I can tell you that, " Geurts said Thursday.

Cargill also operates plants in Eddyville, Iowa; Blair, Nebraska; Cedar Rapids, Iowa; Dayton, Ohio; and Memphis, Tennessee.

Eddyville officials announced Thursday they would cut 60 of the plant' s 520 positions through early retirement, transfers to other Cargill divisions, voluntary severance and layoffs.

ProGold is owned by Golden Growers, the Minn-Dak Farmers Cooperative of Wahpeton and American Crystal Sugar Co., based in Moorhead, Minn.

The $261 million plant opened in 1996, just as market prices for its high-fructose corn syrup dropped sharply. A 10-year lease signed with Cargill the next year brought stability to the operation and allowed Golden Growers to post profits for the last two years.

Mark Dillon, Golden Growers executive vice president, said that while it is difficult to see people lose their jobs, any move that keeps the plant open is good for the economy of southeastern North Dakota.

" Whether it' s Cargill or any of the other producers, profits have been very thin to nonexistent in fructose for the last (few) years, " he said.