USDA Reassigns Unused Sugar Allotments

WASHINGTON, June 30, 2005 – The USDA is reassigning unused cane sugar allocations from processors in Hawaii and Louisiana to processors in Florida and Texas. There are no reassignments to be made for the beet sector.

USDA's Commodity Credit Corporation (CCC) is required to make a determination on the need for reassignments after evaluating current inventories, estimated production, expected marketings and other factors deemed appropriate to determine a processor's ability to market its full allocation. With only one quarter remaining in the marketing year, sugar processor allocation use has been reviewed and today's announcement is a result of that review.

Based on estimates published in the June 2005 World Agriculture Supply and Demand Estimates report (WASDE) and other data available to the CCC, the allotment for Louisiana is reduced 25,040 short tons, raw value (STRV) and the Hawaiian allotment is reduced 9,000 STRV. This quantity is reassigned as follows: Florida 13,164 STRV; and Texas 20,876 STRV.

The reassignment is determined in two steps. The September 2005 production forecast for Louisiana indicates that certain Louisiana processors will be unable to use 33,683 STRV of their allocation. Of that amount, 8,643 STRV were redistributed within Louisiana to meet the allocation shortages of other processors.

The remaining 25,040 STRV was combined with Hawaii's 9,000 STRV excess allotment, and redistributed to Texas and Florida processors according to their available supply. CCC will continue to monitor production and make adjustments as deemed necessary.