USDA Sugar Allocations For 2008

WASHINGTON - Sep 27/07 - SNS -- The USDA's Commodity Credit Corporation (CCC) today announced the final fiscal year 2007 state allotments and company allocations.

CCC adjusted the allotments and allocations to reflect current production forecasts and also the 79,000 short ton, raw value (STRV) reassignment to imports announced on July 31, 2007. CCC also announced the Fiscal Year (FY) 2008 state allotments and cane and beet sugar company allocations of the 8,450,000 STRV Overall Allotment Quantity (OAQ) announced on August 10, 2007.

CCC stated in the July 31, 2007, news release that the forecast domestic supply shortfall of 79,000 STRV would be reassigned to imports, in this case, 20,000 STRV to specialty tariff-rate quota (TRQ) sugar, and 59,000 STRV to non-program imports. As a result, CCC lowered state allotments and company allocations to accommodate each company’s and state’s ability to market its allocation and allotment.

CCC also announced the distribution of the FY 2008 beet sugar allotment of 4,592,575 STRV (54.35 percent of the OAQ) among sugar beet processors. In addition, CCC announced the distribution of 3,787,425 STRV of the cane sector allotment to cane states and sugarcane processors. This is 70,000 STRV less than the 3,857,425 STRV cane sugar allotment (45.65 percent of the OAQ) and is reassigned to imports in accordance with the August 10, 2007, determination that the cane sector would be unable to fill 70,000 STRV of its allotment.

CCC determined that South Louisiana Sugars Cooperative, Inc., a Louisiana sugarcane processor, was closed and accepted grower petitions to transfer allocation elsewhere. Given the detail required for such an event, permanent transfers could not be made by the September 30, 2007, announcement deadline for FY 2008 allocations. An announcement of permanent allocation transfers in Louisiana will be forthcoming.

In FY 2004, CCC declared 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. Hawaii received none of the Puerto Rican reassignment because it is not expected to use all of its current cane sugar allotment.

CCC determined that proportionate shares are not necessary in Louisiana in FY 2008 because the cane sugar sector is not expected to fill its allotment.