Fall 2003 Root of the LEVERAGING OUR CO-OP STRUCTURE BUSINESS
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Fall 2003 root of the LEVERAGING OUR CO-OP STRUCTURE BUSINESS By Mark Flegenheimer, and the knowledge of the risks and costs of not starting President and CEO in a timely fashion, we should have plenty of beets to slice in September. As our second crop under grower Joint marketing. Utilizing the Capper-Volstead ownership begins to mature, we con- exemption that allows cooperatives to jointly market, tinue to adapt, adjust and most impor- we have entered into a partnership with the three Red tantly realize efficiencies of our new River Valley Co-ops (Minn-Dak, Southern Minnesota cooperative structure. It continues to be a learning and American Crystal) to market our pulp and experience for the management, employees and molasses. Michigan Sugar Company and those co-ops growers alike. The Co-op structure, however, very now co-own Midwest Agri-Commodities, which markets clearly proves the old adage is true, “People have been all of the by-products of its four owners. In total, known to achieve more as a result of working with Midwest Agri-Commodities globally markets over 1.5 others than against them.” million tons of beet pulp, beet molasses and raffinates, Let me cite a couple of examples of how we have annually giving us substantial clout in the marketplace. utilized our new structure to our (growers and company) These are just two small examples of how we have advantage: leveraged our new ownership structure. As a coopera- Early delivery. We have put together a new, tive, we are working together with a common interest. enhanced early delivery program. We have also shared Since you, the growers, own the company, all financial critical operating data with our grower-owners on the benefits ultimately accrue to you. These benefits may be risks and costs of running campaign too late into the in the form of increased share value and/or increased spring, or stated another way, not starting early beet payments. We will continue to seek out and enough in the fall. See the article in this issue, by leverage the advantages of our new co-op structure Robert Braem entitled Early Delivery Enhanced—An which will make your company, Michigan Sugar Important Success Strategy, that examines those very Company, strong and viable for many, many years. issues. With the new early delivery program in place Have a safe and bountiful harvest. TABLE OF CONTENTS Root of the Business . 2 Cover Story—Research Update . 18 2003 Crop Update . 3 Lime . 26 The Sweetener Industry . 4 Growers in the News . 28, 29 Pressed Beet Pulp . 6 4H Day . 30 Early Delivery Enhanced . 8 Michigan Sugar and WNEM TV-5 . 30 Getting Your Trucks Dumped Faster . 10 Michigan Sugar Scholarship Awards . 31 BeetCast . 12 Co-op Financials . 32 Review of Factory Inter-Campaign . 14 Community Window . 34 Meet the Factory Managers . 16 ABOUT THE COVER The Michigan Sugar Co. research and agricultural departments work closely with researchers from universities, government and private industry. Here Steve Poindexter from Sugarbeet Advancement and Corey Guza from Michigan Sugar Co. are observing test plots at the Saginaw Valley Bean and Beet Research Farm. 2 P IONEER NEWSBEET 2003 GREAT START, GREAT WEATHER, CROP UPDATE GREAT GROWING by Robert Braem, Vice President of stands ever recorded. Cool temperatures in May and Agriculture early June slowed early growth, but row closure was achieved near the normal time. The 2003 sugarbeet crop got off Growers used new information and methods to to a great start and has continued micro-rate spray sugarbeets this spring. Research has growing very well through the mid- indicated post-spraying based on growing degree season. As of this writing, our crop days (GDD) improves timeliness and ultimately weed has progressed steadily without any significant set- control. Many of those growers tracking GDD applied backs or periods of slow growth. Traveling through- their first spray more timely and got very good weed out the area, I am hard pressed to find fields that control. Because of the cool temperatures in May, don’t look great. Many growers and staff believe this growers spread their timing between applications crop looks as good now as any they have ever seen. when they saw GDD were accumulating slowly. Planting began during the first week of April, but Growers achieved cost savings from the reduced progressed very slowly up to April 15. Previously wet number of applications and less sugarbeet injury. In soil conditions improved and 20% of the crop went another year, if temperatures are higher and GDD in during that next week. The last eight days of April accumulate quickly, growers who monitor GDD will were ideal, allowing growers to plant 96% of their be alerted and can spray more timely to control fast crop by May 1. The remaining acreage was planted growing weeds. The outcome of all weed control between rain showers within a two-week period. efforts this year is a clean and healthy sugarbeet crop. Growers planted 127,000 acres, including 2000 acres Growers between Caro and Saginaw are testing a of authorized overplants. new Cercospora leafspot spray model called Spring weather conditions were ideal for plant BeetCast (an article explaining the details is included emergence and early growth. Growers have increased in this issue). BeetCast has been tested by Sugarbeet their seeding rate and reduced secondary tillage in Advancement for the last two years. Adapted from an effort to improve plant population and sugarbeet use in tomatoes, it monitors temperature and leaf quality. The result this year is the highest established wetness to predict the right conditions for Cercospora leafspot to develop. The system model PIONEER NEWSBEET software calculates Disease Severity Values (DSV) FALL 2003 • VOLUME 17, NO. 2 for each day beginning in mid-May. Results are NEWSBEET TECHNICAL ADVISORS: posted on the website www.michiganbeets.com for Managing Editor: Robert Braem, Vice President—Agriculture growers, agribusiness and agricultural staff to follow. Editor: William Gough, Agricultural Manager—Carrollton Early research indicates better control is achieved Technical: Corey Guza, Chief Agronomist Assistant Editor: Julie Perry, Executive Assistant—Administration when growers begin spraying at 55 DSV, which is Advertising: Sherri Adams, Executive Assistant—Agriculture often before the first spots can be found on leaves. PIONEER NEWSBEET PUBLISHED BY Growers then apply subsequent sprays between 35 MICHIGAN SUGAR COMPANY and 55 DSV, depending on how aggressively they try Agricultural Office, P.O. Box 107, Caro, MI 48723 to control the disease. COMMUNICATIONS SHOULD BE ADDRESSED TO: Research plots and grower fields are being Editor, Pioneer Newsbeet, P.O. Box 107, Caro, MI 48723 sprayed this year using BeetCast. Some excellent Email: [email protected] data and testimonials will be available later this year PIONEER NEWSBEET is published by Michigan Sugar Company in Saginaw, Michigan. It is prepared for grower members of Michigan Sugar Company, from and after harvest results are in. BeetCast will be information obtained from sources which the Company believes to be reliable. another important tool growers can utilize to improve However, the Company cannot guarantee or assume any responsibility for the accuracy of the information or be responsible for the results obtained. Mention or sugarbeet quality and enhance profits. Michigan illustrations of a special technique, specific equipment or products does not constitute endorsement by the Company. Reprinting or quoting articles appearing continued on page 17 in Pioneer Newsbeet is granted with the exception of those items credited to outside sources. FALL 2003 3 THE SWEETENER INDUSTRY HOW IT IS REPRESENTED By Dick Leach, sugar cane, or corn pays a share of commodity industry in the U.S. Director of the cost of the different associa- To comprehend the size and Community and tions needed to defend the industry structure of the industry’s repre- Government and provide the public and law- sentation on political matters in Relations makers with the true facts about Washington, D.C., see the chart on the importance of our industry to the following page. Most folks who the health of our people and the In addition to the American grow sugarbeets and corn, or work economy of our country. Sugar Alliance (ASA), which han- in the caloric sweetener industry, I am not a registered lobbyist, dles political matters, we are rep- as I do, don’t give a lot of but I have represented Michigan’s resented by the Sugar Association thought about how the industry agriculture in Washington, D.C., on consumption related issues is represented in Washington and for many years and the sugarbeet and on agronomic and processing elsewhere. We should, however, industry since 1996. The sugar matters by BSDF (Beet Sugar because each grower of sugarbeets, industry is the most well organized Development Foundation). American Sugar Alliance The ASA is a national coalition of sugar cane, sugarbeet and • Florida has two organizations; the Sugar Cane Growers corn farmers, processors, suppliers, workers and others dedicated Cooperative of Florida and the Florida Sugar Cane League. They to preserving a strong domestic sweetener industry and it is the represent cane growers and mill operators in Florida and are umbrella organization for the industry. The ASA and its member active in all aspects of the cane sugar and sweetener industry. associations work to assure that farmers and workers in the U.S. •The Louisiana sugar cane industry is organized through the sweetener industry survive in a world of heavily subsidized American Sugar Cane League. Its main focus is on research, sugar. The ASA provides economic data and gives testimony legislation, product promotion, education and public rela- on behalf of the industry whenever and wherever needed. tions. The League represents both Louisiana cane growers The ASA is located in the Washington, D.C., area and is supported and cane processors in matters on the federal level.