News Release
Governor Applauds Growers Purchase of Western Sugar
5/1/2002
Ron Zellar
406-444-3144
rzellar@state.mt.us
Sugar Growers Cooperative in their purchase of Western Sugar Co. from Tate
& Lyle PLC of Great Britain. The buyout, announced Wednesday, was initiated
by Montana growers, who received early help from the state's Growth Through
Agriculture program.
"This is great news for Montana sugar beet growers, who have worked very
hard to take this important step in controlling the future of their
industry," said Governor Martz. "I wish Rocky Mountain Sugar Growers every
success in this endeavor and congratulate them on this milestone."
The new Western Sugar Cooperative owns six sugar plants in four states,
including a plant in Billings. Between 250 and 300 Montana growers are
members of the co-op, which will be based in Denver, Colo., for the
convenience of sugar purchasers and suppliers, said Randon Wilson, a Denver
attorney who worked on the purchase.
"This deal is a credit to the local banks, to the states who provided
grants, and to growers like Rick Dorn who really believed this was
possible," Wilson said. The Montana Growth Through Agriculture fund
supplied two $50,000 grants to the co-op to help fund a feasibility study
and provide help with legal details.
Dorn, a Hardin, Mont., grower and former president of the American Sugar
Beet Growers Association, is chairman of the cooperative's board. He and
several other Montana growers spearheaded the buyout and stayed with the
effort through several attempts to gain grower approval of a final deal.
"This is a monumental day for growers. Governor Martz and Director Ralph
Peck of the Montana Department of Agriculture were very, very helpful, not
only in providing early grant funding but also in securing a Business and
Industry loan guarantee for us from the USDA," said Dorn.
The final agreement totals $185 million, or $42 million less than the
original negotiated agreement. Western Sugar has been merged into the
cooperative, which changed its name to Western Sugar Cooperative from the
Rocky Mountain Sugar Growers Cooperative.
Dorn also expressed pleasure at the prospects of a new Farm Bill being
considered in Congress. He said provisions recently approved by a
conference committee should provide stability to the U.S. sugar industry
and "contribute to our success in ownership."
Peck said the sugar industry provides an important high-value crop that is
key to the financial well being of growers in southeastern and northeastern
Montana. "We are very pleased they have succeeded in this endeavor," Peck
said.
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