Michigan Sugar Co. lifts force majeure in place since April


BAY CITY, MICH. – With the sugar beet harvest in full swing, the Michigan Sugar Co. announced Sept. 21 that it had canceled force majeure beet sugar allocations that had been in place for all contracted companies since the April 1st.

“We are very pleased to remove the force majeure conditions that have been in place for the past six months and fully meet the needs of our customers nationwide,” said Pedro L. Figueroa, Vice President of Sales. and marketing of the company. “Our grower-owners, management team and employees are very excited to pick up the pace and normalize our inventory. »

Any customer who has met the contract quantities allocated for the second and third quarters can begin ordering their balance of contract quantities available in the fourth quarter carryover contracts, the company said. These contracts include the 25% adjustment made on second and third quarter volumes. The standard lead time still applies to all orders. Sugar was also allocated for limited one-off sales.

“We have additional inventory to build up and will do our best to meet the ordering needs of our contract customers,” Mr. Figueroa said. “At times we may need to move or adjust orders as we continue to return to strength in supply. We appreciate the patience and support of our customers and business partners with this difficult supply issue. We look forward to meeting the sugar needs of our valued partners in the future. »

Michigan Sugar declared force majeure in April due to lower than expected sugar content in its 2021 sugar beet crop and implemented a 25% reduction in shipments to all contract customers in the April 1 to September 30 in addition to withdrawing from the spot market. . The 2022 beet harvest started at the end of August. The company said it expects a return to more normal sugar content levels in the 2022 harvest.

“Our crop looks healthy and our factories are quickly upgrading,” Figueroa said. “We have lost some acreage this year due to competing crop prices, but the expected sugar content of our beets allows us to move forward with confidence that we can remove the handcuffs, return to more normal selling conditions and begin to fully fulfill purchase orders from our contracted customers.

The Michigan Sugar Co. is a co-operative comprising approximately 900 grower-owners who harvest approximately 160,000 acres of sugar beets each year from more than 20 counties in Michigan and Ontario. The company’s four processing facilities – in Bay City, Caro, Croswell and Sebewaing, Michigan, produce approximately 650,000 tons of sugar annually.

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