Sugar Producer

May 2010 Sugar Producer

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fROm ThE ASGA by Luther Markwart | EXECUTIVE VICE PRESIDENT 2010 Acreage Intentions ON MARCH 31, USDA PUBLISHED the planting intentions for sugar- beets for the 2010 crop. Planted area is expected to drop by 9,000 acres from 1,183,200 acres to 1,174,200 acres. Lower acreage in a stronger market makes it clear, that with adequate moisture to begin the season we expect yields to be strong again this year. Our industry is running at full processing capacity, therefore acreage must be modified to adjust for higher yields. SUGARBEETS March 31, 2010 State CA CO ID MI MN MT NE ND OR WA 3/ WY US Area Planted by State and United States, 2008-2010 1/ Area Planted 2009 2008 26.0 33.8 131.0 137.0 440.0 31.7 45.2 208.0 6.7 1.6 29.7 1,090.7 1,000 Acres 25.1 35.1 164.0 138.0 463.0 38.4 53.0 225.0 10.6 31.0 1,183.2 2010 2/ 25.0 29.8 169.0 147.0 445.0 42.4 46.0 227.0 11.0 32.0 1,174.2 2010/2009 Percent 100 85 103 107 96 110 87 101 104 103 99 Supply and Demand USDA’s March estimate for year-end, carry-over stocks were at 10.3 percent which means the U.S. would have 1,075,000 tons (raw value) of sugar in the warehouses as we begin harvesting the 2010 crop in September. Under the current farm bill, the USDA may now add sugar to the market if it deems that supplies are needed and unrestricted imports from Mexico do not threaten to oversupply the market. In March, USDA identified countries that would not ship their quota and gave their share to countries that could deliver to our market before September 30. The beet sugar industry’s view is that there is adequate sugar to meet consumer needs without more imports at this time. We continue to closely monitor the government’s actions. Roundup Ready Litigation Since we are actively involved in ongoing litigation, very little can be written or discussed publicly about the case. However, two dates are important in the weeks ahead. On April 27, the Supreme Court in Washington, D.C. will hear an appeal regarding the Roundup Ready alfalfa case. The beet sugar industry, in conjunction with the National Corn Growers Association, has filed a brief with the Supreme Court in support of Mon- santo’s arguments in the case. A ruling by the Supreme Court is expected in June, which may clarify various issues for 9th Circuit Court with regards to the pending Roundup Ready sugarbeet case. Oral arguments regarding the permanent remedy for the sugarbeet case is currently scheduled for July 9. Crop Insurance Work is expected to be completed on a revenue insurance policy for sugarbeets and presented to USDA for approval for an initial pilot program for the 2011 crop in Idaho, southern Montana and northern Wyoming. This has been a long journey and we remain hopeful that it will be approved. In addition, we are now in the process of collecting data for replant costs nation-wide. Current coverage for replants is woefully inadequate and we are working closely with USDA on getting the best data available to update those costs so coverage may be in place for the 2011 crop. Dietary Issues There are a host of ongoing issues surrounding America’s diet. Everything from updating Dietary Guidelines to what products may be advertised to children under 17 years of age. The obesity epidemic, particularly among our youth, is the top priority for the First Lady, Michelle Obama, and the focus of the congressional spouses. Better diets and more exercise are the basic thrust of their focus. Clearly this has many implications for sweeteners and we are working with our customers to navigate our way through these issues. FEb. 6-8 2011 ASGA Annual Meeting Tucson, Ariz. Westin La Paloma CONTACT: 202-833-2398 17

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