This year’s sugar deliveries by Rogers Sugar Inc. were slightly lower than volumes from last year.
The 646,376 tonnes it delivered were 2,900 tonnes less than last year, a decrease of .4 percent, said chief executive officer Edward Makin in a Nov. 18 conference call about the company’s fourth quarter and year-end results.
Rogers will pay a quarterly dividend of nine cents per share for a total payout of $8.5 million.
Adjusted gross margin was $81.9 million year to date, compared to $82.1 million in fiscal 2013, or $127 per tonne, compared to $126 per tonne last year.
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Industrial sugar sales were up by 5,400 tonnes for the year, and consumer sales were up by 2,900 tonnes. The latter was mostly from a new multi-year agreement signed with a major retail account.
However, the increases were offset by lower liquid volumes and export sales. Makin said Rogers had limited access to the U.S. and Mexican markets in fiscal 2014. Both countries had good crops and good inventory.
The company might be able to increase exports to the U.S. next year, depending on the outcome of negotiations between the United States and Mexico over dumping and countervail duties.
The two countries signed an agreement in late October, which Reuters reported at the time was designed to avert potentially steep duties on Mexican sugar imports.
However, the deal was only a draft. Makin said further discussions and changes to the deal are still possible, potentially opening the door to Canadian sugar, but Rogers has not factored that into its outlook for next year.
Rogers operates sugar factories in Montreal, Vancouver and Taber, Alta.
Makin said the 22,000 acres of sugar beets planted in Alberta this year are expected to yield 85,000 tonnes of refined sugar.
Last year it contracted 24,000 acres.
The company earned $1.3 million less in byproduct revenues this year because of the reduction.
“The Taber beet factory is the most significant contributor of revenues from byproducts in the form of beet pulp and beet molasses,” said Manon Lacroix, vice-president of finance for Rogers.
Gross margins for this year’s fourth quarter were $140 per tonne compared to $99 per tonne in the same quarter last year.
“Additional costs (were) incurred (last year) relating to higher costs of raw material in Taber, higher maintenance costs in Vancouver due to an unusual equipment breakdown and lower overall plant performances,” said Lacroix.
Makin said the company is confident the Comprehensive Economic Trade Agreement with the European Union will benefit the Canadian sugar industry once it is ratified.
Rogers also supports the objectives for the Trans-Pacific Partnership, which is now being negotiated.
“The interests of the sugar industry could be enhanced further should an agreement be reached with this extremely important trading partner,” Makin said.
