WASHINGTON, Sept. 30, 2008 - The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced the final fiscal year (FY) 2008 state allotments and company allocations. CCC adjusted the allotments and allocations to reflect current production forecasts and also a 140,059 short ton, raw value (STRV) reassignment of cane sugar production shortfall to imports already anticipated to enter the United States.

For FY 2009, CCC announced several items: the cane sugar state allotments and cane and beet sugar company allocations of the 8,925,000 STRV Overall Allotment Quantity (OAQ) published on September 9, 2008; the recognition of a new cane processor in Louisiana, Andino Energy Enterprises, L.L.C.; that proportionate shares are not in effect for Louisiana for FY 2009; and that no eligible sugar will be available for the Feedstock Flexibility Program in FY 2009.

FY 2008 State Allotments and Company Allocations

Based on the latest estimated level of total domestic raw cane sugar supply, and after some minor redistributions of allocation to cover end-of-year polarity adjustments, CCC determined that the cane sector would be unable to use 140,059 STRV of its total FY 2008 allotment level of 3,626,533 STRV. This shortfall is required by law to be first reassigned to CCC sugar sales. Since CCC has no inventory, the 140,059 STRV shortfall is reassigned to imports which are already anticipated to enter in the September, 2008, World Agricultural Supply and Demand Estimates (WASDE) report. There are no reassignments within the beet sector.

FY 2009 State Allotments and Company Allocations

CCC announced the distribution of the FY 2009 beet sugar allotment of 4,850,738 STRV (54.35 percent of the OAQ) among the sugar beet processors. In addition, CCC announced the distribution among cane sugar processors of the 4,074,262 STRV cane sugar allotment (45.65 percent of the OAQ).

CCC also grants Andino Energy Enterprises, L.L.C. (Andino) a FY 2009 cane sugar allocation of 25,266 short tons, raw value. This amount is the expected FY 2009 sugar production based on evidence provided to CCC demonstrating Andino's ability to process, produce, and market 2008-crop raw cane sugar at its St. James factory. CCC is not reducing allocations at the other Louisiana mills at this time because the FY 2009 raw cane sugar allotment is expected to be considerably larger than the domestic raw cane sugar supply. Rather, CCC is filling Andino's allocation with the reassignment of surplus allotment expected from Hawaii to Louisiana. Based on current production estimates, CCC does not expect any other states to need surplus allotment from Hawaii. When 1997 through 2003 crop year history becomes available for the petitioning growers, CCC will determine the permanent allocation level for Andino, and subtract allocation shares, on a pro rata basis, from the Louisiana mills specified in the petitions.

In FY 2004, CCC determined that Puerto Rican processors permanently terminated operations because no sugar had been processed for two complete years. Since Puerto Rico is entitled to an allocation by law, the allocation of 6,356 STRV is reassigned to the mainland cane-producing states. Because Hawaii is not expected to use all of its current cane sugar allotment, it received none of the Puerto Rican reassignment and CCC reassigned 25,266 tons of Hawaiian allocation to Louisiana for Andino.

CCC determined that proportionate shares are not necessary in Louisiana in FY 2009 because the cane sugar sector is not expected to fill its allotment.

FY09 Feedstock Flexibility Program

Given current supply and demand conditions, CCC determined at this time that there will be no sugar available to implement provisions of the Feedstock Flexibility Program (FFP) in FY 2009. The September, 2008 WASDE indicates a FY 2009 ending stocks-to-use ratio of 4.6 percent. At this level, the prospect for sugar forfeitures, which triggers the FFP, is unlikely in FY 2009.

The final FY 2008 and initial FY 2009 sugar marketing state allotments and processor allocations are listed in the table located at http://www.usda.gov/documents/allos.pdf.

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