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| Directions l American Farm Bureau l Farm Bureau Bank l Privacy Policy l Contact Us l Help l Site Map |
The Voice of Louisiana Agriculture
Welcome to the Louisiana Farm Bureau Federation
| Directions l American Farm Bureau l Farm Bureau Bank l Privacy Policy l Contact Us l Help l Site Map |
Welcome to the Louisiana Farm Bureau Federation
Welcome to the Louisiana Farm Bureau Federation
The Voice of Louisiana Agriculture
NEW ORLEANS-- The news for Louisiana’s sugarcane farmers is looking up.
That was the message presented during the Sugar Conference at the 87th Annual Louisiana Farm Bureau
Convention here Saturday, June 27.
Craig Ruffalo, a market analyst with McKeany-Flavell of Oakland, Calif.,
told growers and millers raw sugar prices should hold steady in the
short term. While Mexican sugar imports will continue, Ruffalo said
the domestic situation is improving.
“There is a lot of government involvement in the sugar industry in
Mexico,” he said. “As a result, there have been some problems in
meeting delivery deadlines north of the border.”
Ruffalo said there is no guarantee that Mexican sugar will be
delivered on time.
“It will be a long time before I trust anyone from Mexico,” he said.
While Mexican imports are looking up — or down — Ruffalo
highlighted one area that needs work in order to maintain its
current price.
“There is a need for further refining capacity,” Ruffalo said. “We’re at
about 100 percent capacity now. If you want to stay in this business
long-term, you’ve got to get more involved in the refining process.”
Ruffalo said the future was especially bright for Louisiana producers.
“The South is growing in sugar usage,” he said. “That’s another
reason for producers to look at a new processing plant in Louisiana.”
Another reason for the bright outlook is consumers’ growing disdain
for HFCS — high fructose corn syrup.
“HFCS is perceived not to be good for you,” Ruffalo said. “That opens
up a new market, but you need the processing facilities to process the
sugar needed to absorb the reformulation from HFCS.”
Backing up Ruffalo’s optimistic prognosis was Dan Colacicco, director of the United States Department of
Agriculture’s Sugar Program.
“To the extent we understand it, this should be a better year (for sugarcane growers),” Colacicco, an
economist, said.
Colacicco said bringing the Imperial sugar refinery in Savannah, Ga., back to full production (it was
destroyed by an explosion Feb. 7, 2008) would provide much-needed refinery capacity.
“They’re back to about 20 percent of capacity now,” he said. “It looks like they’re back on schedule after
running into problems.”
In the meantime, Colacicco said the federal government is “confounded” by what it needs to do to assist
producers. “What does the government do when it’s confounded?” Colacicco asked. “Nothing. That’s what
we’ve done this year.”
Colacicco pointed to risk factors that could affect the sugar market. Those included:
• The early sugar beet harvest (weather has delayed the start);
• Imperial factory reopening;
• Mexican imports;
• Higher demand;
• The world market; and
• Hurricane season.
But, like Ruffalo, he closed on an optimistic note: “Overall, things are looking up.”
That was the message presented during the Sugar Conference at the 87th Annual Louisiana Farm Bureau
Convention here Saturday, June 27.
Craig Ruffalo, a market analyst with McKeany-Flavell of Oakland, Calif.,
told growers and millers raw sugar prices should hold steady in the
short term. While Mexican sugar imports will continue, Ruffalo said
the domestic situation is improving.
“There is a lot of government involvement in the sugar industry in
Mexico,” he said. “As a result, there have been some problems in
meeting delivery deadlines north of the border.”
Ruffalo said there is no guarantee that Mexican sugar will be
delivered on time.
“It will be a long time before I trust anyone from Mexico,” he said.
While Mexican imports are looking up — or down — Ruffalo
highlighted one area that needs work in order to maintain its
current price.
“There is a need for further refining capacity,” Ruffalo said. “We’re at
about 100 percent capacity now. If you want to stay in this business
long-term, you’ve got to get more involved in the refining process.”
Ruffalo said the future was especially bright for Louisiana producers.
“The South is growing in sugar usage,” he said. “That’s another
reason for producers to look at a new processing plant in Louisiana.”
Another reason for the bright outlook is consumers’ growing disdain
for HFCS — high fructose corn syrup.
“HFCS is perceived not to be good for you,” Ruffalo said. “That opens
up a new market, but you need the processing facilities to process the
sugar needed to absorb the reformulation from HFCS.”
Backing up Ruffalo’s optimistic prognosis was Dan Colacicco, director of the United States Department of
Agriculture’s Sugar Program.
“To the extent we understand it, this should be a better year (for sugarcane growers),” Colacicco, an
economist, said.
Colacicco said bringing the Imperial sugar refinery in Savannah, Ga., back to full production (it was
destroyed by an explosion Feb. 7, 2008) would provide much-needed refinery capacity.
“They’re back to about 20 percent of capacity now,” he said. “It looks like they’re back on schedule after
running into problems.”
In the meantime, Colacicco said the federal government is “confounded” by what it needs to do to assist
producers. “What does the government do when it’s confounded?” Colacicco asked. “Nothing. That’s what
we’ve done this year.”
Colacicco pointed to risk factors that could affect the sugar market. Those included:
• The early sugar beet harvest (weather has delayed the start);
• Imperial factory reopening;
• Mexican imports;
• Higher demand;
• The world market; and
• Hurricane season.
But, like Ruffalo, he closed on an optimistic note: “Overall, things are looking up.”
Outlook sweet for state’s sugar growers
By CHUCK CANNON
FB News Contributing Writer
FB News Contributing Writer
| FB NEWS Photo by Layne Photography |
SWEET TALK. Market Analyst Mark Ruffalo talks
to farmers about sugar usage in the South at the
87th Annual Meeting of the Louisiana Farm
Bureau Federation.
to farmers about sugar usage in the South at the
87th Annual Meeting of the Louisiana Farm
Bureau Federation.