Washington, D.C. – U.S. Senator Mike Enzi, R-Wyo., congratulated Big Horn Basin and Fremont County sugar growers for their initiative in protecting their own livelihood and an essential economic asset to their communities.
Richard McKamey, president of the Washakie Beet Growers Association, said recently that Wyoming Sugar Company LLC, which is made up of local growers, landowners and business people, has reached an "agreement in principle" to purchase the Worland sugar factory from Holly Sugar Corporation. He expects the closing on the deal to take place within the next few months. The deal should keep the factory operating during this year's growing season and beyond.
"When Holly Sugar said it was going to close the doors of the Worland factory, local growers did not bury their heads in the sand. They did something about it and I believe their bold undertaking will payoff far into the future," said Enzi. "Wyoming sugar growers face danger from drought, foreign trade and market slides. This purchase, when finalized should help to put their house in better order and give them the strength and stability they need in order to survive and thrive amid the many challenges they face."
Enzi has worked with the sugar beet growers and other segments of the Wyoming agricultural community to help them form cooperatives that will enable them to process and market their own goods. This allows the people who risk the most to earn more of the profit.
McKamey said the deal puts area sugar producers in a better position to make a profit than Holly. The new owners will not be dependent upon other regions to support the financial infrastructure, the debt structure isn't overwhelming, it will be run by a professional management team that is solely focused on the Big Horn Basin and Fremont County growing areas and should be a low-cost producer.
From Holly's perspective, the purchase will still allow the company to focus on its core business of marketing sugar products. Under the terms of the agreement growers will buy the factory, but still retain Imperial Sugar as its marketer.
Last year the Washakie Beet Growers Association signed a one-year lease of the Holly Sugar Factory in Worland. The agreement allowed Holly to continue to operate the mill and market the sugar while its parent company, Imperial Sugar, pursued Chapter 11 bankruptcy protection. Imperial announced in January of 2001 that it had filed for bankruptcy protection. The company struggled throughout 2000 with depressed commodity prices and a glut of sugar. Imperial Sugar notified employees earlier this year that it would shut down the factory sometime between March 16 and March 31.
The factory processes the beets from about 20,000 acres in the area. Officials have estimated that 400 to 500 local jobs stem from the sugar beet industry.
