[Federal Register Volume 68, Number 123 (Thursday, June 26, 2003)]
[Notices]
[Pages 38001-38004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-16140]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Domestic Sugar Program--Revisions of 2002-Crop Sugar Marketing 
Allotments and Allocations

AGENCY: Commodity Credit Corporation, USDA.

[[Page 38002]]


ACTION: Notice.

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SUMMARY: The Commodity Credit Corporation (CCC) increased the 2002-crop 
overall allotment quantity (OAQ) of domestic sugar by 463,000 short 
tons, raw value (STRV) to 8.663 million STRV on May 13, 2003. In 
addition, CCC reassigned unused cane and beet sugar allocations between 
respective processors on May 19, 2003.

ADDRESSES: Barbara Fecso, Dairy and Sweeteners Analysis Group, Economic 
Policy and Analysis Staff, Farm Service Agency, USDA, 1400 Independence 
Avenue, SW., STOP 0516, Washington, DC 20250-0516; telephone (202) 720-
4146; FAX (202) 690-1480; e-mail: [email protected].

FOR FURTHER INFORMATION CONTACT: Barbara Fecso at (202) 720-4146.

SUPPLEMENTARY INFORMATION: Section 359c of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1359c), as amended, requires adjustments to 
marketing allotments and allocations quarterly, as CCC determines 
appropriate, to reflect changes in estimated sugar consumption, stocks, 
production, or imports. The initial OAQ amount set in August 2002 for 
the 2002 crop year was 7.7 million STRV. CCC adjusted that to 8.2 
million STRV in January 2003. Because market prices for both refined 
and raw sugar remained well above loan forfeiture levels, CCC again 
increased the OAQ in May 2003 to make domestic sugar available to the 
market. The cane sector was allotted 45.65 percent (3.955 million STRV) 
of the OAQ, while beet received 54.35 percent (4.708 million STRV).
    Section 359e(a) of the Farm Security and Rural Investment Act of 
2002 requires a periodic review to determine (in view of current sugar 
inventories, estimated sugar production, expected marketings and other 
pertinent factors) whether (1) any sugarcane processor will be unable 
to market the sugar covered by the portion of the State cane sugar 
allotment allocated to the processor; and (2) any sugar beet processor 
will be unable to market its allocation. Section 359e(b)(1)(B) further 
provides for the reassignment of the estimated quantity of a State 
deficit proportionately to the allotments for other cane sugar States 
(depending on each State's capacity to market) when a State does not 
have the capacity to fulfill its allotment among its own processors.
    In April 2003, CCC surveyed sugarcane and sugar beet processors 
asking for revisions to 2002-crop production and ending stocks 
estimates for the purpose of calculating reassignments. CCC determined 
that the cane sector could only fulfill 3.945 million STRV of its 
allotment. The remaining unfulfilled portion of its allotment, 10,000 
STRV, was reassigned to CCC for sale of inventory. However, CCC did not 
reduce the cane sector allotment 10,000 STRV at that time due to 
uncertainties in company production estimates provided in the survey. 
Likewise, it was determined that the beet sector would only be able to 
fulfill 4.534 million STRV of its new allotment. Thus, 77,641 STRV of 
beet sugar were reassigned among beet processors. The unfilled balance, 
174,000 STRV, was reassigned to CCC for the sale of its inventory.
    The allotments/allocations were calculated differently for the cane 
and beet sectors:

Cane Sector

    [sbull] Allotments/allocations were changed to incorporate the 
211,360 STRV increase in the cane sugar allotment and the updated 2002-
crop production/marketing estimates. (Column C of the attached table).
    [sbull] Allocations were reduced for processors with surplus 
allocations and reassigned to processors with surplus supply within the 
same State. This occurred for Florida and Louisiana (Column D of the 
attached table).
    [sbull] The remaining excess Louisiana allocation that could not be 
eliminated by reassignment within Louisiana plus excess allocations 
from Hawaii and Puerto Rico were reassigned to cane processors in 
Florida and Texas. These two states indicated in the survey that they 
had a shortfall in allocation for the current crop year (Column E of 
the attached table).

Beet Sector

    [sbull] Allotments/allocations were changed to incorporate the 
77,641 STRV increase in the beet sugar allotment (Column C of the 
attached table).
    [sbull] Allocations were reassigned from beet processors with 
unused allocation, as indicated in the April 2003 survey for the 
current year, to those indicating an allocation shortfall (Column E of 
the attached table).
    CCC will continue to closely monitor market performance and 
critical program variables throughout the year to ensure that program 
objectives are met, including maintaining market balance. Sugar 
allotment/allocation reassignments will be reevaluated periodically as 
production estimates improve.
    These actions apply to all domestic cane and beet sugar marketed 
for human consumption in the United States from October l, 2002, 
through September 30, 2003. The revised 2002-crop sugar marketing 
allotments and allocations (in short tons, raw value) are listed in the 
following table:

                 Fiscal Year 2003 Sugar Marketing Allotments and Allocations (Revised May 2003)
                                             [Short Raw Value--Tons]
----------------------------------------------------------------------------------------------------------------
                                                      C Change                      E Reassignments
                                          B Last       due to         D Cane          across all        F New
                                        allotment/  increase in    reassignments     processors by    allotment/
                                        allocation      OAQ        within states        sector        allocation
----------------------------------------------------------------------------------------------------------------
Overall Beet/Cane Allotments:
Beet Sugar...........................    4,456,700      251,641  ................                 0    4,708,341
Cane Sugar (includes P. Rico)........    3,743,300      211,360  ................                 0    3,954,660
                                      --------------
    Total OAQ........................    8,200,000      463,000  ................                 0    8,663,000
 
Beet Reassignment to CCC.............  ...........  ...........  ................  ................      174,000
Cane Reassignment to CCC.............  ...........  ...........  ................  ................       10,000
Allotment Available to Beet..........  ...........  ...........  ................  ................    4,534,341
Allotment Available to Cane..........  ...........  ...........  ................  ................    3,954,660
 
Beet Processors' Marketing
 Allocations:
Amalgamated Sugar Co.................      975,245       16,176  ................           -15,400      976,021
American Crystal Sugar Co............    1,593,720       27,854  ................            32,380    1,653,954
Holly Sugar Corp.....................      299,019        5,209  ................            -5,128      299,100

[[Page 38003]]

 
Michigan Sugar Co....................      299,050        4,960  ................            36,498      340,509
Minn-Dak Farmers Co-op...............      292,029        4,844  ................             8,194      305,067
Monitor Sugar Co.....................      171,362        2,842  ................                64      174,268
Pacific Northwest Sugar Co...........       22,314        2,090  ................           -24,023          381
So. Minn Beet Sugar Co-op............      300,708        4,988  ................            -4,910      300,785
Western Sugar Co.....................      443,799        7,642  ................            -4,669      446,772
Wyoming Sugar Co.....................       59,454        1,036  ................           -23,007       37,483
                                      --------------
    Total Beet Sugar.................    4,456,700       77,641  ................                 0    4,534,341
 
State Cane Sugar Allotments:
Florida..............................    1,945,380      112,245  ................            46,712    2,104,337
Louisiana............................    1,340,192       86,369  ................           -45,348    1,381,212
Texas................................      161,625       12,746  ................             3,956      178,326
Hawaii...............................      295,878            0  ................            -5,094      290,784
Puerto Rico..........................          225            0  ................              -225            0
                                      --------------
    Total Cane Sugar.................    3,743,300      211,360  ................                 0    3,954,660
 
Cane Processors' Marketing
 Allocations:
Florida
  Atlantic Sugar Assoc...............      148,371       17,509            -2,104                 0      163,777
  Growers Co-op. of FL...............      347,976       27,387             1,924            11,802      389,088
  Okeelanta Corp.....................      420,688        2,918             3,457            21,211      448,274
  Osceola Farms Co...................      229,575       23,154             2,233            13,699      268,661
  U.S. Sugar Corp....................      798,769       41,277            -5,510                 0      834,536
                                      --------------
    Total............................    1,945,381      112,245                 0            46,712    2,104,337
 
Louisiana
  Alma Plantation....................       72,635        4,304               318                 0       77,257
  Caire & Graugnard..................        6,091          392              -113              -279        6,091
  Cajun Sugar Co-op..................      101,056        6,293              -135              -503      106,711
  Cora-Texas Mfg. Co.................      119,297        7,733            -1,081            -4,043      121,906
  Harry Laws & Co....................       55,048        3,128             3,816                 0       61,992
  Iberia Sugar Co-op.................       64,543        4,155              -993            -3,162       64,543
  Jeanerette Sugar Co................       62,422        3,351              -453            -1,694       63,626
  Lafourche Sugars Corp..............       64,441        4,146              -869            -3,249       64,470
  Louisiana Sugarcane Co-op..........       81,006        5,178              -994            -3,718       81,471
  Lula Westfield, LLC................      147,826        9,516            -2,004            -7,497      147,840
  M.A. Patout & Sons.................      183,290       10,280             8,603                 0      202,174
  Raceland Sugars....................       82,516        6,897            -1,112            -4,161       84,140
  St. Mary Sugar Co-op...............       88,669        5,562            -1,001            -3,745       89,485
  So. Louisiana Sugars Co-op.........      118,366        7,620            -4,323           -13,298      108,366
  Sterling Sugars....................       92,986        7,814               340                 0      101,140
                                      --------------
    Total............................    1,340,192       86,369                 0           -45,348    1,381,212
 
Texas
  Rio Grande Valley..................      161,625       12,746  ................             3,956      178,326
 
Hawaii
  Gay & Robinson, Inc................       64,298          979  ................              -979       64,298
  Hawaiian Commercial & Sugar Company      231,580         -979  ................            -4,115      226,486
                                      --------------
    Total............................      295,878            0  ................            -5,094      290,784
 
Puerto Rico
  Agraso.............................          225          -26  ................              -199            0
  Roig...............................            0           26  ................               -26            0
                                      --------------
    Total............................          225            0  ................              -225            0
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[[Page 38004]]

    Signed in Washington, DC on June 13, 2003.
James R. Little,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 03-16140 Filed 6-25-03; 8:45 am]
BILLING CODE 3410-05-P