FARGO, N.D. - The 2001 growing season will be remembered for difficult
weather conditions that hurt sugarbeets, an oversupply of sugar that
hurt prices, and a terrorist attack that hurt the nation.
Through it all, sugarbeet growers in the Red River Valley did their
best to raise high quality beets while their cooperatives worked to
maximize profits.
Spring tillage and planting for 2001 began later than last year and
the five-year average due to cool temperatures and wet conditions in
April throughout the Red River Valley. The first beets were planted in
mid-April, but excess moisture hindered planting so that the majority of
beets were planted toward the end of May and into early June.
A dry period followed during critical growing weeks in July and
August. When rains returned, they remained intermittent throughout the
season, decreasing yield potential.
Minn-Dak Farmers Cooperative harvested about 94,235 acres and
delivered 1.7 million tons of sugarbeets with an average yield of 18.04
tons/acre this fall.
David Roche, president and chief executive officer announced that
average sugar content was 17.46 percent, as compared to 18.5 percent for
the 2000 crop.
"Both yield and sugar content are below the long-term average
although purity is comparable and the crop is storing well thus
far," said Roche at a press conference on Dec. 4 in Fargo.
This will be the shortest campaign in a number of years, said Roche,
projecting a 164-day slicing campaign, which is "not a part of the
standard business plan."
"While price outlook is improving, the reduced crop will mean a
reduced average return per acre," said Roche. "Growers
understand that a reduced crop translates to lower returns."
For fiscal year 2001 (2000 crop) the cooperative's revenues increased
by 5 percent from $170.1 million to $177.9 million, with the growers'
share totaling $89.6 million.
American Crystal Sugar Company growers harvested about 8 million tons
of sugarbeets averaging 17.8 tons/acre - over two tons/acre less than in
the co-op's recent history. Average sugar content was 18 percent - about
one-half percentage point better than recent norms.
American Crystal projected an average gross ton payment for this
year's crop at $36/ton, or $641/acre - about $5/ton below the coop's
10-year average. The gross beet payment for 2000 totaled $37.70/ton. For
an average shareholder, that equaled about $821/acre.
Nearly $100 million will not come into the Red River Valley's economy
that would have in a typical year because of the lower yields and
payments, said James Horvath, American Crystal president and chief
executive officer.
American Crystal's 2000 crop was the third largest in history at just
over 9.6 million tons. The sugar content was slightly above average at
17.8 percent. The coop produced about 1.45 million tons of sugar. They
also received 75,000 tons of sugar in exchange for not harvesting about
33,000 acres of sugarbeets. Total shipments were about 15 percent of all
the sugar consumed in the United States.
For a second year in a row, sugarbeet growers participated in 2001 in
the Payment-In-Kind program conducted by the Commodity Credit
Corporation. American Crystal growers did not harvest about 29,000 acres
as part of the PIK program. Minn-Dak growers were authorized to plow
under 9,881 acres this year.
The PIK program reduced government stocks of sugar by about 500,000
tons, or about 50 percent, said Horvath. In addition, because of
extremely low prices of sugar as well as weather conditions, sugarbeet
acreage throughout the United States was reduced by about 10 percent, or
150,000 acres in 2001.
"All these factors brought balance back to the sugar market for
this year," said Horvath.