Southern Alberta sugar beet growers have begun planting crops, now that contentious contract negotiations have been resolved.
The Alberta Sugar Beet Growers (ASBG) and Lantic Inc., which operates the Taber, Alta., sugar refinery, signed a three-year contract April 14 after protracted negotiations that at one point threatened the future of the 2012 sugar beet crop.
It clears the way for 200 growers to start planting 30,000 acres of sugar beets contracted by Lantic.
“All in all, we think it’s a good solid position and we think it’s going to provide stability,” said ASBG executive director Gerald Third.
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“We think it will also provide good returns to the growers, especially with the rising cost of inputs.”
Third and Lantic agricultural superintendent Andrew Llewelyn-Jones said neither side was satisfied with the final deal, but they did resolve matters through use of a mediator.
The contract provides an increase to growers on the bulk return of sugar and also increases the incentive for higher sugar content, said Llewelyn-Jones.
As well, the threshold for shrink payments was changed. Lantic will now pay growers for shrink, which is the difference between what the company buys and what it slices, if that difference exceeds 5.5 percent.
“Overall, the package meant an increase in returns to the grower,” Llewelyn-Jones said.
Lantic will contract at least 30,000 acres of sugar beets in each of the next three years, with the option to increase that amount if sugar prices rise and Lantic obtains additional markets.
The world price of sugar is now more than 20 cents US per pound, and if it stays higher than 22 cents, Llewelyn-Jones said growers will realize the maximum returns under the new contract.
The window of April 15-30 is typically the ideal time to plant sugar beets in southern Alberta.
