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Banner: Congressman Dale E. Kildee / Michigan's 5th District
City life in Michigan
 
From © The Saginaw News
 
Beet Growers Ask for Help
 
Thursday, February 24, 2005
 

A congressman and a state senator want the federal government to step up efforts to help mid-Michigan sugar beet growers recoup income they will lose to spoilage.

Beet growers said this week that about 300,000 tons, or 8 percent, of last year's harvest was unfit for production. That could cost growers about $26 million, said Mark Flegenheimer, president and CEO of Michigan Sugar Co.

"This is a significant loss," Flegenheimer said. "We're talking about big dollars."

U.S. Rep. Dave Camp, a Midland Republican, on Wednesday asked the U.S. Department of Agriculture to aid Michigan Sugar's 1,300 growers, who expect revenues to hit a 30-year low.

Industry officials blame erratic fall temperatures for the spoilage at beet piling grounds, where the crop awaits processing.

Beets manufacture sugar as they grow, then burn their reserves in survival mode after the harvest. The hotter it gets, the more sugar they burn.

Mid-Michigan did not have enough freezing or near-freezing days to sustain the stored supplies.

State Sen. James A. Barcia also stepped into the beet growers' corner Wednesday when he urged Michigan's two Democratic senators, Carl Levin of Detroit and Debbie Stabenow of Lansing, to expedite disaster relief.

The Bay City Democrat has asked for federal aid through the Sugar Beet Disaster Program, created in 2003 in response to crop disasters that occurred in 2001 and 2002.

He said he also hopes to secure money from the state but acknowledged the difficulty with Michigan's budget crisis.

Among the options officials might consider are direct financial assistance, donating sugar from elsewhere to mid-Michigan growers to sell in place of the damaged crop and selling what's left of the crop at higher profit margins.

"We're going to be looking at a number of relief measures," said Sage Eastman, a Camp spokesman.

The loss is no cause for panic, Flegenheimer said. Farmers are accustomed to the risk inherent in their chosen field.

The concern, Flegenheimer said, is the timing.

Michigan Sugar Co., a Saginaw Township-based cooperative formed when growers bought the company in 2002, purchased Monitor Sugar Co. in Bay City in October. The purchase created the third-largest sugar beet cooperative in the nation, employing 500 full-time and 1,850 seasonal workers.

"The Bay City plant was just added to the cooperative," Flegenheimer said. "On the state level, they loaned us some money. We hope the payback date could be pushed back."

The financial loss likely will cause individual growers to put off major investments, but it won't have a trickle-down effect on the next production season, Flegenheimer said.

"We're going to plant another crop," he said. "We're going to survive to fight another day."

Meanwhile, U.S. Rep. Dale E. Kildee, a Flint Democrat who represents parts of Saginaw County, has reintroduced a resolution to take "U.S. sugar off the bargaining table" in the Central American Free Trade Agreement, said Peter Karafotas, a spokesman.

Domestic sugar growers fear the agreement will flood the market with foreign-subsidized sugar, bringing in 100,000 tons in its first year alone, Karafotas said.

Kildee's staff also met with Michigan Sugar Co. officials Tuesday about the losses and continues to work on the issue, Karafotas said.

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