The USDA Commodity Credit Corporation has announced the initial fiscal 2010 allocation of the overall sugar marketing allotment among domestic sugar beet and sugarcane processors.
CCC distributed the fiscal 2010 beet sugar allotment of 5,019,358 short tons/raw value (STRV), 54.35 percent of the OAQ, among the sugar beet processors and the cane sugar allotment of 4,215,892 STRV, 45.65 percent of the OAQ, among the sugarcane processors.
In addition, CCC announced several structural changes in the allocation to certain sugarcane processors. CCC combined the Louisiana cane sugar allocations of Alma Plantation, L.L.C, Cajun Sugar Cooperative, Inc., Cora-Texas Mfg. Co. Inc., Lafourche Sugars, L.L.C., Louisiana Sugar Cane Cooperative, Inc., Lula-Westfield, L.L.C. and St. Mary Sugar Cooperative, Inc. into one allocation under the name of Louisiana Sugar Cane Products, Inc. (LSCPI).
Further, CCC modified Louisiana mills’ fiscal 2010 cane sugar allocations to reflect grower petitions to transfer allocation commensurate with their cane deliveries to the new mill of their choice. CCC permanently transferred allocations between Louisiana mills for those growers whose petitions met all CCC requirements.
However, for those growers whose petitions did not meet all CCC requirements, CCC temporarily increased the fiscal 2010 allocations of the recipient mills specified in the petitions, but did not reduce the allocations of the mills these growers are leaving.
Instead, surplus allocation from Hawaii was reassigned to the recipient mills. CCC will permanently transfer allocations for these growers when all CCC requirements are met.
CCC expects domestic cane sugar production to be significantly less than the cane sugar sector allotment; thus, all cane sugar companies are expected to be allocated enough sugar marketing allocation to market their total fiscal 2010 sugar production.
CCC determined, in 2004, that Puerto Rican processors permanently terminated operations because no sugar had been processed for two complete years. The Puerto Rico allocation of 6,356 STRV is reassigned to Hawaii and then further reassigned to the mainland sugarcane-producing states because Hawaii is not expected to use all of its cane sugar allotment.
The initial fiscal 2010 sugar marketing state allotments and processor allocations are listed in the table available at: http://www.fsa.usda.gov/Internet/FSA_File/fy10_initial_oaq.pdf.
For more information, contact Barbara Fecso at (202) 720-4146 or [email protected].