FROM: The Great Western Sugar Company Box 5308 - Denver, Colorado 80217 CONTACT: Jim Lyon, Manager
Agricultural Information Phone: 303/893-4702
/ ... %"'
r,
191.
1q13
oP
~-
.
November 12, 1973FOR RELEASE THURSDAY, NOV. 15, 1973
a==================================
Advance sugarbeet returns per ton wi 11 reach their highest level in a five-state area this fall with payments for the 1973 crop to 4,000 gro.-Jers who produce beets for The Great Western Sugar Company.
The fall total will average $19.33 per ton of beets, comprising an initial payment from the company to be made next Tuesday (Nov. 20) of $17. 15 and $2. 18 to follow in Sugar Act compliance payments financed by a federal tax on the sugar industry.
The record figure was announced in Denver by James A. Krentler, chairman of the board of GW Sugar, a subsidiary of Great Western United Corporation.
Krentler said the first fall payments for the 1973 crop will total $84.8 million, of which $75.2 million is from the company and $9.6 million is in Sugar Act payments. These
cover beets delivered through Nov. 4 by grower~ in areas served by the company in Colorado, Kansas, Nebraska, Wyoming and Montana. Company payment for beets delivered after Nov.
4
wi 11 be made on Dec. 15.Krentler said GW's initial payment will average $2.80 more per ton of beets than first payment for the 1972 crop last November. He added that the increase is $3.40 more per ton for growers who produced beets in both years with sugar content of 16.5 percent, the long-time averag~ in GW areas.
2 •••••••
In the ·five-state area, Krentler ·noted, the 1973 initial payment per ton of beets wi 11
average 96% of the total of three company payments for the 1972 crop--or only 71 cents _ less
per ton. Additional company payments are usually made in Apri 1 and October of the fol lowing year. Total returns for the 1973 crop cannot be determined now, since growers share in net proceeds from sale of sugar throughout the marketing year ending Sept. 30.
The impact of sugar content was noted by the GW Sugar chairman with the level of average
payments for growers in the Lovell, Wyo., area. Their initial payment for 1973 beets, he said,
will be more than all their total company payments for 1972 beets because of higher sugar content. And the same will be true, he added, for some growers in the other four states, de-pending on the sugar content of their beets.
Krentler said there are promising indicators for continuing enhanced grower returns
be-cause, for the fourth straight year, consumption of sugar in the world is exceeding production.
The result is, he said, a strong market in raw sugar futures which points to higher prices in the next ten months. On Monday (Nov. 12) Krentler said, raw sugar prices were 23% greater
than on that day a year ago. But he said the exact effect of raw prices on GW prices could
not be determined at this time.
The strong sugar market, Krentler said, exerted an important influence in the record 1973
initial payment per ton of beets. This despite the crop in the five states being slightly
below long-time average sugar content, due to a poor growing season in some localities. In
eastern Colorado and Kansas, for example, sugar content was reduced by late beet plantings due
to adverse spring weather. Other crops also suffered there.
In contrast, Krentler said, harvest weather was excellent, with growers delivering 98% of
the beet crop with little difficulty by Nov. 4, the delivery date for the initial payment. Onl
a few scattered tons of beets now remain to be harvested in the five states.
Harvest also nears completion in Great Western's area in Ohio and Michigan. Initial
3 ... .
(LOCALIZED FOR COLORADO, KANSAS, CENTRAL NEBRASKA):
In beet-growing areas serving Colorado factories, including parts of western Kansas and central Nebraska, grower returns this fal 1 wi11 average $18.82 per ton of beets, in• cluding $2. 13 in Sugar Act payments. The figures were reported by Ralph W. Hettinger, North Central Colorado area agricultural director at Longmont, and James F. Gonyou, Northeast Colorado and Kansas area agricultural director at Fort Morgan.
Hettinger and Gonyou pointed out that, despite the late start for sugarbeets and other crops in most localities, the company1
s initial payment will average $2.50 more per ton than at this time last year. They added that total grower returns for the pro-duction area thi·s fall will be $45 million, including $5.1 million in Sugar Act payments.
3 . . . .
(LOCALIZED' FOR NEBRASKA & WHEATLAND, WYO.):
In beet-growing areas serving Nebraska factories, including Wheatland, Wyo., grower returns this fall will ave(age $19.48 per ton of beets, including $2. 19 in Sugar Act pay-ments. The figures were reported by Leonard H. Henderson, area agricultural director at Scottsbluff.
Henderson pointed out that, with higher sugar content in the area, the company's
initial payment wi 11 be $2.58 per ton higher than at this time last year -- and will exceed the company-wide average by 15 cents.
· The Nebraska area's total grower returns this fall will be $21.2 million, Henderson
3. . ...
(LOCALIZED FOR MONTANA AND WYOMING):
In beet-growing areas serving factories at Billings and Lovell, grower returns this
fall will average $20.49 per ton of beets, including $2.28 in Sugar Act payments. The
figures were reported by Lee E. Butler, area agricultural director at Bi !lings.
Butler pointed out that, because of high sugar content, the company's initial pay-ment in the production area will average $3.86 more per ton than at this time last year,
while the Lovell factory district alone will average $4.33 more per ton. Butler added
that it was encouraging to see that the Lovell growers• initial company payment for 1973 beets will average more than all their company payments for 1972 beets.
For the Wyoming-Montana area as a whole, Butler said grower returns this fall will total a record $18.6 million, including $2.1 million in Sugar Act payments.
