Farm Service Agency

Public Affairs Staff

1400 Independence Ave SW

Stop 0506, Room 3624-South

Washington, D.C. 20250-0506

Release No. 1563.05

WASHINGTON, Sept. 30, 2005 - The U.S. Department of Agriculture today announced beet processor company allocations for fiscal year (FY) 2006. These beet sugar allotments total 4,796,388 short tons, raw value (STRV).

The FY 2006 total beet sugar allotment reflects the increase in the Overall Allotment Quantity (OAQ) to 8,825,000 announced on Sept. 29, 2005. Changes to cane state and sugarcane processor allocations will be announced at a later date when impacts from Hurricanes Katrina and Rita are better understood. The reassignment of sugar cane allotment to imports reflects our expectations that the domestic cane sugar supply will be significantly less than its share of an 8,825,000 OAQ.

USDA is not assigning the beet sugar allotment share held previously by Pacific Northwest Sugar Company (PNS). That share was transferred to American Crystal Sugar Company (ACS) when ACS purchased PNS. The share, which amounts to 2.69 percent of the total allocation, is being held pending the decision of the USDA Judicial Officer in an appeal of an administrative law judge's decision. Ordering the allocation be transferred to all sugar beet processors on a pro rata basis effective FY 2006.

USDA will act in accordance with the judicial officer's decision. This announcement also recognizes the purchase of Holly Sugar Corporation by Southern Minnesota Beet Sugar Cooperative and is combining their company allocations.

The FY 2006 beet sugar allocations in short tons, raw value (STRV) are:

For more information, contact Barbara Fecso at (202) 720-4146, Barbara Fecso.

NOTE: Farm Service Agency (FSA) news releases and media advisories are available on the Web at FSA's home page: http://www.fsa.usda.gov