[Federal Register Volume 75, Number 190 (Friday, October 1, 2010)]
[Notices]
[Pages 60715-60718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-24663]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Domestic Sugar Program--FY 2010 and FY 2011 Cane Sugar and Beet 
Sugar Marketing Allotments and Company Allocations

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Notice.

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SUMMARY: The Commodity Credit Corporation (CCC) is issuing this notice 
to publish the modifications to the fiscal year 2010 (FY 2010) State 
sugar marketing allotments and company allocations to sugarcane and 
sugar beet processors. This applies to all domestic sugar marketed for 
human consumption in the United States from October 1, 2009, through 
September 30, 2010. CCC is also issuing this notice to publish the

[[Page 60716]]

FY 2011 State sugar marketing allotments and company allocations to 
sugarcane and sugar beet processors, which apply to all domestic sugar 
marketed for human consumption in the United States from October 1, 
2010, through September 30, 2011. Although CCC already has announced 
most of the information in this notice through United States Department 
of Agriculture (USDA) news releases, CCC is required to publish the 
determinations establishing and adjusting sugar marketing allotments in 
the Federal Register.

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

SUPPLEMENTARY INFORMATION: 

Initial FY 2010 State Allotments and Company Allocations

    On September 25, 2009, CCC established the initial FY 2010 
allocation of the sugar overall allotment quantity (OAQ) at 9,235,250 
short tons, raw value (tons). As required by the Agricultural 
Adjustment Act of 1938, as amended, the sugar beet sector was allotted 
54.35 percent of the OAQ (5,019,358 tons), while the cane sugar sector 
was allotted 45.65 percent (4,215,892 tons). CCC distributed the sector 
allotments among domestic sugar beet and sugarcane processors according 
to the statute and the regulations in 7 CFR part 1435 and made several 
structural changes in the allocation to certain sugarcane processors.
    CCC combined the Louisiana cane sugar allocations of Alma 
Plantation, L.L.C, Cajun Sugar Cooperative, Inc., Cora-Texas Mfg. Co. 
Inc., Lafourche Sugars, L.L.C., Louisiana Sugar Cane Cooperative, Inc., 
Lula-Westfield, L.L.C. and St. Mary Sugar Cooperative, Inc. into one 
allocation under the name of Louisiana Sugar Cane Products, Inc. 
(LSCPI). CCC also modified the FY 2010 cane sugar allocations of mills 
in Louisiana to reflect grower petitions to transfer allocation 
commensurate with their cane deliveries to the new mill of their 
choice. CCC permanently transferred allocations between Louisiana mills 
for those growers whose petitions met all CCC requirements. However, 
for those growers whose petitions did not meet all CCC requirements, 
CCC temporarily increased the FY 2010 allocations of the recipient 
mills specified in the petitions. Surplus allocation from Hawaii was 
reassigned to these recipient mills (see below). The allocations of the 
mills which the growers asked to leave were not reduced.
    In FY 2004, CCC determined that Puerto Rican processors permanently 
terminated operations because no sugar had been processed for two 
complete years. The Puerto Rico allocation of 6,356 tons was reassigned 
to Hawaii in FY 2010, as required, and then further reassigned to the 
mainland sugarcane-producing States. This reassignment will also occur 
in FY 2011 as Hawaii is again not expected to use all of its cane sugar 
allotment.

First Revision to the FY 2010 Sugar Marketing Allotment Program

    The May 7, 2010, announcement of sugar marketing allotment changes 
implemented CCC's reassignment of 200,000 tons of surplus cane sugar 
allotments to imports, announced on April 23, 2010. The May 7, 2010, 
revisions included a reassignment of projected surplus beet sugar 
marketing allocations under the FY 2010 Sugar Marketing Allotment 
Program from beet sugar processors with surplus allocation to those 
with deficit allocation. Further, CCC noted the addition of the 
allocation of Wyoming Sugar Company, LLC (WSC) to the allocation of 
Minn-Dak Farmers Cooperative (MDFC). This was done in accordance with 
section 359d(b)(2)(G) of the Agricultural Adjustment Act of 1938, as 
amended (7 U.S.C. 1359dd(b)(2)(G)) to reflect MDFC's purchase of WSC's 
Worland, WY, factory in December 2009.

Second Revision to the FY 2010 Sugar Marketing Allotment Program

    USDA revised cane processor allocations, and cane State allotments, 
on August 19, 2010, to implement the July 6, 2010, reassignment of 
300,000 tons of surplus domestic cane sugar allotment to a raw Tariff 
Rate Quota (TRQ) import increase. Since all cane processors were still 
expected to have more allocation than could be fulfilled by 
domestically-produced cane sugar in FY 2010, CCC reassigned an 
additional 200,000 tons of surplus cane allotment to raw cane sugar 
imports already expected from non-TRQ sources. With respect to the beet 
sector, CCC on August 19, 2010 reassigned surplus beet sector allotment 
from beet processors not expected to fill their allocation to beet 
processors still requiring allocation to market all their FY 2010 
supply. CCC then determined that 170,000 tons of beet sugar allotment 
could not be filled by the beet sector and the surplus was reassigned 
to raw cane sugar imports already expected from non-TRQ sources. In 
total, CCC reassigned 670,000 tons of surplus beet and cane sugar 
allotments to raw cane sugar imports--300,000 tons to an increase in 
the raw sugar tariff-rate quota per the July 6, 2010, announcement and 
370,000 tons to raw cane sugar imports already expected from non-TRQ 
sources on August 19th. Final FY 2010 beet and cane sector allotments 
were reduced to 4,849,358 and 3,515,892 tons, respectively.

Initial FY 2011 Sugar Marketing Allotments and Processor Allocations

    On August 19, 2010, CCC further announced the initial FY 2011 OAQ 
of 9,235,250 tons, the same level as FY 2010, as well as sugar beet and 
sugarcane sector allotments and allocations. Establishing the OAQ at 
this level will supply over 85 percent of expected FY 2011 domestic 
sugar needs and permit domestic sugarcane and sugar beet processors to 
market all of their expected sugar production in FY 2011. Processors 
are expected to be able to market all of their expected production in 
FY 2011 because the market is expected to be firm--domestic demand is 
projected to be strong relative to available supplies and prices are 
expected to remain firm. Due to this expected firm market situation, 
CCC announced that it would not implement the Feedstock Flexibility 
Program (FFP) or the Louisiana Proportionate Share Program for FY 2011. 
CCC also established a beet allocation for a new beet processor who 
acquired an existing factory with production history.
    On August 19, 2010, CCC distributed the FY 2011 beet sugar 
allotment of 5,019,358 tons (54.35 percent of the OAQ) among the sugar 
beet processors and the cane sugar allotment of 4,215,892 tons (45.65 
percent of the OAQ) among the sugarcane States and processors, as 
required by the Agricultural Adjustment Act of 1938, as amended. The 
accompanying table is identical to the August 19 allotments. The 
allotments recognize the sale by Minn-Dak Farmers Cooperative (MDFC) of 
its beet processing factory located in Worland, Wyoming to Wyoming 
Sugar Growers, LLC (WSG). As a result, 0.8373168 percent of the total 
beet sugar marketing allotment and the associated production history 
will be transferred from MDFC to WSG, effective October 1, 2010. In 
addition, the allotments reflect reassignment of Puerto Rico's 
allocation of 6,356 tons to Hawaii, and then further reassignment to 
the mainland sugarcane-producing States, because Hawaii is not expected 
to use all of its cane sugar allotment.

[[Page 60717]]

    The summary of the FY 2010 beet and cane sugar marketing allotments 
and processor allocations are listed in the following table:

                              FY 2010 Overall Beet/Cane Allotments And Allocations
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                                           Initial FY 2010
              Distribution                allocation  9/28/ Revisions 5/7/10   Revisions 8/19/     Final FY 10
                                                 09                                  10            allocations
----------------------------------------------------------------------------------------------------------------
                                                                   Short tons, raw value
----------------------------------------------------------------------------------------------------------------
Beet Sugar..............................         5,019,358                 0          -170,000         4,849,358
Cane Sugar..............................         4,215,892          -200,000          -500,000         3,515,892
Reassignment to Raw TRQ Imports.........                 0           200,000           670,000           870,000
                                         -----------------------------------------------------------------------
    Total OAQ...........................         9,235,250                 0                 0         9,235,250
================================================================================================================
Beet Processors' Marketing:
    Amalgamated Sugar Co................         1,074,683           -17,362            14,327         1,071,647
    American Crystal Sugar Co...........         1,850,519           -51,420          -111,798         1,687,301
    Michigan Sugar Co...................           518,377            69,779                -9           588,146
    Minn-Dak Farmers Co-op..............           321,805            51,988           -41,244           332,549
    So. Minn Beet Sugar Co-op...........           677,454           -21,949           -36,773           618,731
    Western Sugar Co....................           507,709            37,777             5,498           550,984
    Wyoming Sugar Co....................            68,812           -68,812  ................  ................
        Total Beet Sugar................         5,019,358                 0          -170,000         4,849,358
State Cane Sugar Allotments:
    Florida.............................         2,094,682          -110,880          -309,097         1,674,705
    Louisiana...........................         1,623,713           -42,407           -20,877         1,560,429
    Texas...............................           182,094            -3,728           -62,650           115,716
    Hawaii..............................           315,403           -42,986          -107,376           165,042
                                         -----------------------------------------------------------------------
        Total Cane Sugar................         4,215,892          -200,000          -500,000         3,515,892
----------------------------------------------------------------------------------------------------------------
                                           Cane Processors' Marketing
----------------------------------------------------------------------------------------------------------------
Florida:
    Florida Crystals....................           862,435           -58,572          -163,122           640,742
    Growers Co-op of Florida............           376,802           -15,331           -42,735           318,737
    U.S. Sugar Corp.....................           855,444           -36,977          -103,241          -715,226
                                         -----------------------------------------------------------------------
        Total Florida...................         2,094,682          -110,880          -309,097         1,674,705
 
rLouisiana
    Louisiana Sugar Cane Products, Inc..         1,128,210           -19,479           -16,579         1,092,152
    M.A. Patout & Sons..................           495,502           -22,928            -4,298          -468,276
                                         -----------------------------------------------------------------------
        Total Louisiana.................         1,623,713           -42,407           -20,877         1,560,429
 
rTexas
    Rio Grande Valley...................           182,094            -3,728           -62,650           115,716
Hawaii
    Gay & Robinson, Inc.................            72,401           -18,673           -50,592             3,136
Hawaiian Commercial & Sugar Company.....           243,002           -24,313           -56,784           161,905
                                         -----------------------------------------------------------------------
        Total Hawaii....................           315,403           -42,986          -107,376           165,042
----------------------------------------------------------------------------------------------------------------

    The initial FY 2011 sugar marketing State allotments and processor 
allocations are listed in the table located below:

          FY 2011 Overall Beet/Cane Allotments and Allocations
------------------------------------------------------------------------
                                                      Initial FY2011
                  Distribution                         allocations
------------------------------------------------------------------------
                                                  Short tons, raw value
------------------------------------------------------------------------
Beet Sugar.....................................                5,019,358
Cane Sugar.....................................                4,215,892
                                                ------------------------
    Total OAQ..................................                9,235,250
========================================================================
Beet Processors' Marketing Allocations:          .......................
    Amalgamated Sugar Co.......................                1,074,683
    American Crystal Sugar Co..................                1,845,383

[[Page 60718]]

 
    Michigan Sugar Co..........................                  518,377
    Minn-Dak Farmers Co-op.....................                  348,589
    So. Minn Beet Sugar Co-op..................                  677,454
    Western Sugar Co...........................                  512,845
    Wyoming Sugar Growers, LLC.................                   42,028
                                                ------------------------
        Total Beet Sugar.......................                5,019,358
========================================================================
State Cane Sugar Allotments:                     .......................
    Florida....................................                2,094,682
    Louisiana..................................                1,620,472
    Texas......................................                  182,094
    Hawaii.....................................                  318,644
                                                ------------------------
        Total Cane Sugar.......................                4,215,892
========================================================================
                 Cane Processors' Marketing Allocations
------------------------------------------------------------------------
Florida:                                         .......................
    Florida Crystals...........................                  862,435
    Growers Co-op. of FL.......................                  376,802
        U.S. Sugar Corp........................                  855,444
                                                ------------------------
        Total Florida..........................                2,094,682
========================================================================
Louisiana:                                       .......................
    Louisiana Sugar Cane Products, Inc.........                1,124,983
    M.A. Patout & Sons.........................                  495,489
                                                ------------------------
        Total Louisiana........................                1,620,472
------------------------------------------------------------------------
Texas:                                           .......................
    Rio Grande Valley..........................                  182,094
Hawaii:                                          .......................
    Gay & Robinson, Inc........................                   73,145
    Hawaiian Commercial & Sugar Company........                  245,499
                                                ------------------------
        Total Hawaii...........................                  318,644
------------------------------------------------------------------------
* The sums of individual entries may not match totals due to rounding.


    Signed in Washington, DC, on September 27, 2010.
Jonathan W. Coppess,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 2010-24663 Filed 9-30-10; 8:45 am]
BILLING CODE 3410-05-P