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U.S.
SUGAR -- UPDATE ON SUGARCANE CROP AND VALENTINE'S DAY FREEZE
Friday, March 3, 2006
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CLEWISTON
- This year’s crop was already badly damaged from Hurricane Wilma,
with more than 25% losses due to the storm.
“We got hammered by the hurricane and then got hammered again
by the freeze. It is going to be a very difficult year for the Company
financially
as the expenses of making hurricane repairs continue to mount and our
sugar production continues to drop,” said Robert Coker, Senior
Vice President.
“This is shaping up to be the worst year in our 75 years of being
in business,” Coker said.
U.S. Sugar’s entire cane crop was subjected to below freezing
temperatures for durations of up to 6.75 hours with temperatures dropping
as low as 24.6 degrees for extended periods of time in some areas.
Immediately following the freeze, we conducted initial damage assessments
and adjusted our harvest schedule to target fields based on historical
knowledge of the varieties and areas most susceptible to freeze damage.
It generally takes a week or so following a freeze event to determine
the extent of the damage to the crop. When the cane stalk freezes,
water in the stalk expands, damaging the tissue or inner cells of the
stalk. This tissue damage inhibits cane’s natural defenses to
bacteria and the deterioration process is accelerated. It takes approximately
a week for the bacteria to colonize and the crop to start showing signs
of damage.
This field by field assessment was completed this week. We have 1.4
million tons of cane left to harvest. Fifty percent of that cane was
frozen. We have revised our harvest schedule in an effort to minimize
further losses due to deterioration of the frozen cane. Our goal is
to harvest this cane within the next three weeks.
In addition to sugar losses in the freeze-damaged mature cane, 75-85%
of the young plant cane or regrowth cane was burnt back to the ground
by the freezing temperatures. It must essentially re-start the growth
process. All growth that had occurred since planting or harvesting
was lost, and the next year’s crop, for all intents and purposes
is all at the same stage in the growth process. This will complicate
our cultivation program in that the entire crop will require the same
attention simultaneously. This will significantly add to our costs
as services will need to be done all at the same time and not spread
out over the growing season.
The next step is to evaluate terminal bud damage on the recently planted
cane. The terminal bud is what drives plant growth. As much as 3000
acres of plant cane may have dead terminal buds. Each field will be
evaluated on an ongoing basis from this point forward.
“As the season winds down, we expect to see further reductions
in cane tonnage and sugar yield,” Coker said.
“Florida sugar farmers are not used to asking for a hand out,” Coker
said, “but we have asked Congress to consider some level of financial
assistance to help us get through these very difficult times.”
“Our growers, our employees, our suppliers and our rural communities
all have suffered tremendously as a result of Hurricane Wilma. Anything
Congress can do to help get people back on their feet will be appreciated,” Coker
said.
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