A new contract between Alberta Sugar Beet Growers and Lantic Sugar will increase the number of sugar beets planted in southern Alberta this year.
The 2011 contract calls for 34,400 acres, up from the 30,000 acres planted under contract last year.
Gerald Third, executive director of the growers group, said contract talks were protracted but producers achieved two goals: an early harvest incentive and a defined processing campaign that protects growers from late season losses.
“After some wrangling and some horse trading, we came to terms,” said Third.
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The contract now makes it worthwhile for growers to harvest beets in September, even though beets at that time are smaller and have a lower sugar content. Payment for beets harvested in September will equate to those harvested in early October, Third said.
Lantic Sugar, which owns and operates the sugar factory in Taber, Alta., will often request early beets to meet sales contracts or customer needs.
“They came to terms on insuring a September beet was worth the same money as if they pulled it out of the ground Oct. 5,” said Third.
The latter date is the start of the normal sugar beet harvest.
“Ultimately it pretty much guarantees an early harvest in the event that one would be needed if there was a bumper crop, for example.”
Third said growers are also protected if the factory is unable to process beets in a timely manner.
“Initially the growers were concerned about factory performance,” said Third.
“In the event of a very large crop, they weren’t confident that the factory could handle a significant tonnage of beets without the growers absorbing unspecified losses at the end of campaign.”
The new contract features a defined 115-day slice campaign. Lantic will buy the beets at a predetermined price if they are not processed at the end of that period.
“The growers are very pleased and they are anticipating a good year. Relations with Lantic are good,” Third said.
Growers are now anticipating the start of seeding, but many fields remained soggy as of April 11.
Third said some growers had relinquished acres because of poor conditions. They will be reallocated to other growers.
As for the weather, a windy day at 15 C April 11 was encouraging.
“Things change down here so incredibly quickly, you can enjoy all four seasons in one day,” Third said.
