Mechanization And Beet Variety Improvements Impact Sugar Industry
By Lois Kerr

Roger Hill, president and CEO of Holly Sugar, has worked in the Holly Sugar Corporation since 1963. During his long career with Holly Sugar, he has witnessed many changes within the industry and has weathered industry ups and downs. Many of the changes over the last 40 years have benefited growers and processors, and Hill expects that both growers and processors will continue to improve in efficiency, product quality and size.

Although Hill has seen many changes through the years, he points to several key factors that greatly impacted the industry. The biggest change involved increased mechanization and the declining need for hand labor. “In the early ‘60’s, we had recruiting offices all through the Rio Grande Valley in Texas,” he recalls. “We recruited one worker for every six acres of sugarbeets, and we maintained an office in Texas year-round.”

He continues, “By the mid ‘70’s, we recruited one worker for every 30 acres of beets. This was made possible by the improvement of beet seed, better spacing, mechanized thinning and herbicides. The industry made tremendous improvements in those areas. By the ‘90’s, growers planted to stand which virtually eliminated the need for hand labor.”

Hill points to the improvement in sugarbeet varieties as a huge step forward for the industry as a whole. “In the ‘60’s growers averaged 16 to 17 tons per acre,” he remarks. “Today growers average in the 22-ton range. This is a lot of improvement.”

Besides increased mechanization and the continued improvement in sugarbeet varieties, Hill also has observed the change in farm size through the years. “The trend has been to get bigger. We have a lot less growers, but they are a whole lot bigger,” Hill comments. “This change is dramatic. In order to grow beets, it takes a lot of tractors, harvesters and trucks, which requires a large investment. Smaller growers can’t afford this kind of equipment overhead.”

Another major change, that of grower-owned cooperatives, began in the ‘70’s. “Grower-owned cooperatives have become the trend,” Hill notes. “If all the proposed changeovers from company owned to grower owned factories materialize, Holly Sugar and Monitor Sugar will be the only stock companies left that aren’t cooperatives.”

He continues, “American Crystal was the first cooperative, started in 1973. Growers since then have opted for cooperatives because they feel they have better control over their destiny if they own the processing plant as well.”

Changes in legislation have also impacted the sugar industry through the years. Explains Hill, “We had a sugar program until 1974. Growers had acre allotments and companies had marketing allotments. Growers were locked in to acreage.”

The industry experienced hard times with the demise of the sugar program. Prices fluctuated as low as $14 per hundredweight and as high as $65 per hundredweight. “It was a difficult time,” Hill acknowledges. “When prices fell to $14 per hundredweight, Utah and Idaho gave up and got out of the business. A year later, prices rose to $60 per hundredweight. The industry had difficult times until we got new sugar legislation. We’ve now basically been in the same loan program since 1985.”

The sugar industry currently works with legislators to provide input on the new farm bill. Hill believes the new bill will have marketing allotments for both beet and cane sugar, and processors will have marketing allocations. “We had a similar program in 1990, except the cooperatives increased acreage,” Hill remarks. “We need supply and demand in balance, and this new program will do it. This will give long term stability to growers and processors.”

Hill believes factory size coupled with beet quality will determine future success. For this reason, he expects the Sidney factory area will have a bright future and will continue to grow in size and increase in efficiency. “The size of the Sidney factory has doubled since 1983,” he points out. “We contracted 23,000 acres in 1983, and we’ve had as many as 49,000 acres in recent years.”

He continues, “The Sidney area growers grow the finest quality sugarbeets in the U.S. This is a real tribute to the growers and to the field staff, who collect information on what works best for growers.”

Hill explains that Holly Sugar has always had a beet quality improvement program to help growers. “Agriculturists identify cultural practices that improve yields,” Hill says. “Our agriculturists are salesmen of ideas. We don’t tell the growers how to grow beets, we just present the information we’ve collected so growers can decide for themselves what to do.”
Hill explains that Holly Sugar takes a different approach from many other companies. Rather than a dictatorial approach, the Holly staff works in close cooperation with growers. “It makes sense to work together and to maintain a close relationship between growers and the company,” Hill remarks. “We don’t want to be dictatorial and tell growers how to do their job. Instead, we collect information and present it to the growers to show them what’s working, what varieties work, what fertilizer rates give the best sugar per acre, the best times for planting and harvest, and other pertinent information. This is a change in philosophy from many companies, and I feel Holly Sugar has been a leader in grower relations.”

Hill sees no change in company policy with the new board of directors. “The new owners of Holly Sugar remain interested in obtaining a return from their investment, just like the growers,” Hill comments. “I see the relationship as the same, with both sides still working together.”

He continues, “The company has less factories because some are sold to growers, but we still have the most profitable factories left. The factories that remain are strong, and growers will be in better control than before. The sugar industry needs strong growers and strong processors for industry survival.”

Hill believes the future holds promise for the sugar industry and the Sidney factory. He points out that improvements will continue to result not only in increased efficiency but also in better seed. “Seed companies and researchers will continue to come up with better varieties with more disease resistance,” Hill states. “Factories will continue to get bigger and more efficient.”

The U.S. sugar industry consistently ranks as 1st or 2nd in the world in low cost sugar production. Hill believes this efficiency, along with the new farm program, will ensure a strong industry. “We have an efficient industry,” he notes. “We’ll get a sugar program, we’ll get an agreement with Mexico, we’ll stop the stuffed molasses, and we’ll have mechanisms in place that are good for us, good for the growers, and good for the customers.”