Archive for the 'Sugar Cane' Category

Sugar Shortage May Turn ‘Acute’ in Third Quarter – Bloomberg

Bloomberg

Feb. 9 (Bloomberg) — A global sugar shortage, which drove prices to the highest level in three decades, may peak in the third quarter this year on demand from the U.S., Mexico, India and Pakistan, according to U.S.-based Tropix Capital Management.

(HC&S sold it’s production on forward contracts at low prices.)

Maui Cane Tassels CLICK for larger image.

“As we enter the second quarter, we enter the inter-crop period for South Brazil when export supply is minimal,” Sean Diffley, founder of the hedge fund and former head of sugar trading at ED&F Man Holdings Ltd., said by email. “Countries like Russia will return to the market in force. The acutest part of the deficit may not be apparent until the third quarter.”

India, China, Indonesia, Pakistan, Egypt and Russia are among countries planning to buy sugar to cool domestic prices, worsening a deficit that may reach 11.92 million tons in the year ending April 30, up from 8.32 million tons predicted in October, Kingsman SA said yesterday. The shortfall may be 5 million to 6 million tons this season, according to Tropix.

“The world stocks-to-use ratio should reach 20 year lows in the second half of this year,” said Diffley, who worked for 16 years at ED&F Man, one of the biggest sugar trader.

India, the biggest user, may need to import an extra 2.5 million to 3 million tons this season to meet a 7 million ton deficit, according to Kingsman. Pakistan, Asia’s third-biggest user, plans to purchase 1.25 million tons by June. The country “apparently bought 100,000 tons” from Cargill Inc. in the past few days, Michael McDougall, a Newedge USA senior vice president said yesterday in a report from an industry event in Dubai.

China Drought

China, the biggest consumer after India, may have a deficit of 3.3 million tons this year after drought and cold weather cut yields, the Guangxi Bulk Sugar Exchange Center said last month. Thailand, the second-biggest exporter, may produce 7.2 million tons in the year started in November, less than the forecast.

“There’s a real rationale to be invested in sugar, at least until March,” when the Brazilian harvest begins, Hussein Allidina, head of commodity research at Morgan Stanley, said in an interview in Dubai. Prices will extend gains as a deficit was expected to last through the season ending Sept. 30, he said.

Continue reading ‘Sugar Shortage May Turn ‘Acute’ in Third Quarter – Bloomberg’

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LETTERS TO THE EDITOR – Mauinews.com – The Maui News

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ECONOMIC DIVERSITY IS KEY TO HC&S’ SURVIVAL

It’s the last one standing, clinging to an antiquated "plantation" era, which is long gone. Current news has focused on many issues, but the most important one may be the ability of this company and its workers to diversify.

Visionary co-partners could provide capital and technology, while HC&S provides land, leases and the work force. Ideas for diversity could be some of the following:

  • Eliminate the middlemen and process locally the many varieties of confectionery and food sugars utilized throughout the world.
  • Eco-agricultural tourism; this is a huge, virtually untapped market for Maui visitors. Co-develop a plantation-era camp with the new Hali’imaile Pineapple owners, complete with country stores, bakery and museum. An immersion package would spotlight sugar and pineapple history, production, fields, museum and products.
  • Grow bamboo to manufacture construction products, high-end flooring, furniture and cabinetry, all produced in a local factory with Maui workers.
  • Develop least-productive lands into revenue-producing energy farms. Solar, wind and solar thermal energy would be harvested and space for future algae biofuels secured. Additional lands could provide light industrial tracts for local businesses to lease.
  • Become a Pacific region leader in agricultural food production. Vertical farming could be accomplished in glass, multistory hydroponic greenhouses with rotating produce beds. Units would be tied into the energy farms and water produced by atmospheric water generators.

HC&S is teetering on a fiscal precipice. The question is, are they willing and able to do something about it?

Mike Cummings

Waiehu

LETTERS TO THE EDITOR – Mauinews.com | News, Sports, Jobs, Visitor’s Information – The Maui News

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A&B profit modest in ‘very difficult’ 2009 – The Maui News

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Agribusiness result expected to improve this year

By HARRY EAGAR, Staff Writer

POSTED: February 4, 2010

Alexander & Baldwin’s agricultural sector lost $27.8 million in 2009, primarily at Hawaiian Commercial & Sugar Co., and the whole corporation’s profits fell to $44.2 million from the $132.4 million of 2008.

Gross revenue fell $475 million from the $1.88 billion of 2008 to $1.4 billion last year.

Net income in 2009 was $1.08 per share, the company reported Wednesday, down from $3.19 the year before.

The results from the agricultural segment had been expected. Drought pushed sugar production down to 126,800 tons, which was 28,400 tons less than the unprecedentedly low production in 2008 and 75,000 tons under what would be expected in a normal year.

The agricultural results would have been even worse, but Gay & Robinson on Kauai quit making sugar, although it plans to continue growing cane for ethanol. G&R and HC&S were the last members of a cooperative. G&R’s withdrawal terminated the membership, which resulted in a $5.4 million gain not from operations for HC&S. Without that, A&B’s agricultural losses would have been about 20 percent higher.

Last week, A&B’s board announced it would continue to operate HC&S through the end of this year, but no commitments beyond that were made.

Although Kauai Coffee, which is included in A&B’s agriculture results, enjoyed better prices and higher income in 2009, the segment’s turnover fell $17.3 million to $107 million.

Continue reading ‘A&B profit modest in ‘very difficult’ 2009 – The Maui News’

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A&B to continue Maui sugar at least through 2010 – The Maui News

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Maui Sugar Cane Tassels
CLICK for larger image

WAILUKU — Sugar production on Maui got a reprieve on Thursday, at least through the end of the year.

Alexander & Baldwin Inc.’s board of directors met in Honolulu Thursday morning to mull over shuttering its Maui subsidiary, Hawaiian Commercial & Sugar Co., after it recorded about $45 million in losses over the past two years. In a statement, the company said it would continue sugar operations through the end of the year, but that the company’s fate beyond 2010 would depend on a "favorable outcome" in water cases pending before the state Commission on Water Resource Management, as well as HC&S’s ability to increase its sugar production levels.

An attorney for the environmental and Native Hawaiian groups that are petitioning the state to order HC&S to return more water to Maui streams called the company’s announcement Thursday a "stunt" aimed at pressuring the water commission to give it what it wants.

Asked on Thursday when the board of A&B would reevaluate the sugar company’s fate, HC&S General Manager Chris Benjamin said, "It’s hard to say. No later than the end of the year, but (the review) could happen at any time. It will depend on whether there’s an adverse development, if it’s a water decision or something else.

Continue reading ‘A&B to continue Maui sugar at least through 2010 – The Maui News’

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American’s Crazed Corn Habit – Mises Institute

Tuesday, December 22, 2009 by Justin Rohrlich

According to a recent Congressional Budget Office report, the increased use of ethanol is responsible for a rise in food prices of approximately 10 to 15 percent.

Why?

We’re turning corn into fuel — a highly inefficient one, at that — instead of food.

The Mackinac Center for Public Policy points out that "mixing food and fuel markets for political reasons has done American consumers no discernable good, while producing measurable harm."

However, perhaps summing up the issue most succinctly is Mark J. Perry, professor of economics and finance at the University of Michigan-Flint:

Anytime you have Paul Krugman agreeing on ethanol with such a diverse group as the Wall Street Journal, Reason Magazine, the Cato Institute, Investor’s Business Daily, Rolling Stone Magazine, the Christian Science Monitor, The New York Times, John Stossel, The Ecological Society of America, the American Enterprise and Brookings Institutions, the Heritage Foundation, George Will and Time magazine, you know that ethanol has to be one of the most misguided public policies in US history.

But Brazil seems to have made it work. Using just 1 percent of its arable land, Brazil produced 6.57 billion gallons of sugar ethanol last year, roughly half the annual oil production of Iraq. Ethanol accounts for about 50 percent of Brazil’s automotive fuel. General Electric and Brazilian aircraft maker Embraer are working to develop ethanol suitable for powering commercial aircraft, with a test flight possible by early 2012. Most importantly, Brazil relies on imported oil for only 10 percent of its energy needs today — due in large part to its ethanol industry.

So, what’s Brazil doing right?

The answer is simple. Unlike the United States, Brazil makes its ethanol from sugar, which yields over eight units of energy for each unit invested, whereas corn-based ethanol yields a paltry one and a half units of energy for each unit invested. Continue reading ‘American’s Crazed Corn Habit – Mises Institute’

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Water staff: Restore one of 19 streams – The Maui News

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Attorney for taro farmers calls recommendations ‘ludicrous’
By CHRIS HAMILTON, Staff Writer

POSTED: December 13, 2009

WAILUKU – In what appears to be a blow to East Maui Native Hawaiian taro farmers and environmentalists – and a potential much-needed win for struggling Hawaiian Commercial & Sugar Co. – the state Commission on Water Resource Management staff has recommended that water diverted by HC&S be restored to only one of the 19 streams it uses to irrigate its sugar crop.

The staff findings are only recommendations, but Native Hawaiian Legal Corp. attorneys said on Saturday that they believe the seven-member commission will rely heavily on the staff assessments and recommendations when it renders its decision, most likely during a public meeting scheduled for Wednesday in Paia.

The meeting will begin at 10 a.m. at the Paia Community Center with a staff presentation and time for questions from Water Resource Management Commission members, Chairwoman Laura Thielen said on Saturday. Thielen is also director of the state Department of Land and Natural Resources.

The public will get a chance to testify beginning at 1 p.m., and Thielen said she expects her fellow commissioners to reach a consensus that evening or the next day, depending on how many people want to speak.

Thielen said she received the 56-page report, signed by Deputy Director Ken Kawahara, last week.

Thielen said she thinks that the staff "did a very good, very thorough job," but she will listen to other commissioners’ questions and public testimony before making a decision on how she will cast her own vote on the issue. She also noted that the Native Hawaiian groups did get more than 12 million gallons of water a day restored to streams in the same watershed last year through an almost identical commission process.

Continue reading ‘Water staff: Restore one of 19 streams – The Maui News’

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Hawaiian sugar going, going … – Hawaii Editorials – Starbulletin.com

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By C. Keith Haugen

POSTED: 01:30 a.m. HST, Nov 17, 2009

News that the last sugar cane fields on Kauai were being harvested makes us realize that it won’t be long before we will see the last of what for more than a century was the single most important product of Hawaii.

It marks the beginning of the end of yet another era in our island home.

And it brings back a lot of memories.

Continue reading ‘Hawaiian sugar going, going … – Hawaii Editorials – Starbulletin.com’

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The last haul – Hawaii Business – Starbulletin.com

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Gay & Robinson’s departure means Hawaii has only one sugar grower left

By Allison Schaefers

POSTED: 01:30 a.m. HST, Oct 31, 2009

The Last Sugar Mill in Hawaii Click for Larger Image

The Last Sugar Mill in Hawaii
Click for Larger Image

WAIMEA, Kauai » The sugar workers bringing in the last harvest at centuries-old Gay & Robinson had tears in their eyes, but this time it was not from the smoke and burning caramel smell that accompanies cane processing.

Amid a chorus of honking trucks, employees escorted Kauai’s last load of sugar cane from the field to the mill yesterday. Along the way, they paid homage to West Kauai, and the community responded in kind.

The convoy began at Makaweli Post Office and proceeded through Waimea Town, around the West Kauai Technology Center and into Hanapepe before stopping at Kaumakani Mill where the workers rode up the dusty drive like returning war heroes. They are the last of their kind on Kauai, the island that ushered in the state’s centuries-old sugar tradition with the opening of the first successful sugar mill in Koloa in 1835. They are the end of an era.

Continue reading ‘The last haul – Hawaii Business – Starbulletin.com’

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Na Wai Eha: HC&S speaks – The Maui News

Jobs, fields at risk in stream water dispute

By CHRIS HAMILTON, Staff Writer

POSTED: October 9, 2009

Sugar Needs Water!  Save HC&S Jobs! Click for Larger Image

Sugar Needs Water! Save HC&S Jobs! Click for Larger Image

PUUNENE – They came out on their coffee breaks and at the end of their shifts, in dust-covered shirts and grease-flecked work boots and with rough hands. A circle of soot rimmed their cheeks where their respirators had been minutes before.

About 20 Hawaiian Commercial & Sugar Co. employees held their own news conference Thursday afternoon, along with a few HC&S supervisors, to make their case to the public that 800 full-time Maui jobs with benefits are at stake if the state Water Resource Management Commission rules against them in the Na Wai Eha streams case.

At issue is HC&S’ current practice of diverting up to 70 million gallons a day from Na Wai Eha, or "the four great waters" – Iao, Waihee, Waikapu and Waiehu streams. Water Commission Hearings Officer Dr. Lawrence Miike, who also sits on the independent board, has proposed reducing that amount by half.

HC&S agronomist Mae Nakahata said that if Miike’s proposed decision stands, about 5,500 acres of sugar cane above and below Honoapiilani Highway in Central Maui would be lost forever.

"If this goes against us, it could be a show stopper," said Robert Lu’uwai, HC&S vice president of factory operations. "Our expenses keep going up, and this year was the lowest sugar production we’ve ever had because of the (three-year-old) drought."

The mill typically produces up to 200,000 pounds of sugar, but produced just 127,000 pounds this year, Lu’uwai said.

Continue reading ‘Na Wai Eha: HC&S speaks – The Maui News’

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The End of Sugar on Kauai – Is This the Beginning of the End for Hawaii’s Iconic Agricultural Products?

Thursday September 24, 2009

Yesterday, Gay & Robinson announced that they would cease sugar operations on Kauai this fall, a year earlier than they had previously announced. This will mark the end of sugar production on Kauai.

When Gay & Robinson first announced its intentions in July 2007, there was anticipation that a partnership with Pacific West Energy LLC would merely shift the sugar cane business from consumable sugar to the production of ethanol. Those plans never met fruition.

With the end of sugar production on Kauai, only Maui’s Alexander & Baldwin’s Hawaiian Commercial & Sugar Co. remains as the only producers of sugar cane in Hawaii. Poor economic conditions and drought conditions on Maui have cast a shadow on the future of sugar on Maui.

It is not beyond comprehension that within a few short years, Hawaii’s two iconic agricultural products, sugar cane and pineapple, may be no more. Currently Maui Land & Pineapple Co. Inc. is the only remaining producer of pineapple in Hawaii. Cheaper sources of pineapple elsewhere in the world and huge financial losses have cast doubt about the future of that operation as well.

Continue reading ‘The End of Sugar on Kauai – Is This the Beginning of the End for Hawaii’s Iconic Agricultural Products?’

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Kula housing project gains a little ground – The Maui News

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Kula housing project gains a little ground

WAILUKU – Maui Planning Commission members were unable to agree where to designate growth boundaries in South Maui, but they did make some progress in Kula.

The Kula Ridge housing project had both supporters and doubters before the planning commission.

Part of the project is supposed to be affordable, but some wondered how to ensure that it really turns out that way.

"Don’t get into a project-review decision-making mode," advised Department of Planning Director Jeff Hunt, adding that downstream reviews of matters such as community plan designations can look at projects in detail.

"This is the beginning of a 125-hurdle process," said Chairman Wayne Hedani.

When it came to a vote, the controversial portion of Kula Ridge cleared its hurdle, with commission member Warren Shibuya dissenting over concerns about water and the adequacy of Lower Kula Road.

However, A&B Properties’ bid to add 80 acres to 63 acres for residential development at Haliimaile failed.

Commission member Kent Hiranaga pointed out that the developer is going to provide water and sewage treatment anyway, so it would be financially helpful to expand the project.

"A&B is an agriculture company and a development company," he said. "If we want to allow them to continue the agricultural sector of their business, you need to allow some development. If you take away development, I believe you are jeopardizing the future of sugar cane.

"Then you will have lots of ag land to use for something."

However, farmers – organic and conventional – opposed taking prime agricultural land out of production, and on a split vote the 80 acres were excluded from the designated growth zone.

That Hiranaga moved to support an A&B proposal was ironic in light of earlier testimony.

Continue reading ‘Kula housing project gains a little ground – The Maui News’

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SUGAR (NYSEArca: SGG) chart added

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I love cane fires <br />Click Here for a Larger Image

I love cane fires
Click Here for a Larger Image

The IPATH DJ-UBS SUGAR (NYSEArca: SGG) sugar index has been included with the annual and weekly Hawaii Agriculture and Related Stocks, ETFs, and ETNs Charts because of the importance of the prices to Agriculture in Hawaii.

Also a comparative performance chart is now included on the Hawaii Agriculture and Related Stocks ETFs ETNs Annual Charts page.

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HAWAII SUGARCANE 08-13-09

Here is the PDF file for the Hawaii Sugarcane Report .

Harvest and replanting is well under way.  Click for Larger Image

Harvest and replanting is well under way. Click for Larger Image

Click Here for the Hawaii Sugarcane Report

Please visit the website for more information:

http://www.nass.usda.gov/hi/

————————————————————-
Contact Information:
Mark E. Hudson, Director
USDA NASS Hawaii Field Office
1421 South King Street
Honolulu, HI 96814-2512

Office: (808) 973-9588 / (800) 804-9514
Fax: (808) 973-2909
————————————————————-

“HAWAII SUGARCANE” reports are available on our website and also PRINTED monthly from August through December. Subscriptions for PRINTED copies are free to those persons who report agricultural data to NASS (upon request) and available for $2 per year to all others.

U.S. SUGARCANE
Production of sugarcane for sugar and seed is forecast at 29.1 million tons, up 5 percent from last year. Expected production increases in Florida and Texas more than offset the expected decreases in Hawaii and Louisiana. Producers intend to harvest 862,700 acres for sugar and seed during the 2009 crop season, up 8,700 acres from the June Acreage report but down 5,300 acres from last year. Expected yield is forecast at 33.7 tons per acre, up 1.9 tons from 2008.

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Sugarcane for Sugar and Seed: Area Harvested by State and United States, 2008-2009

Click for larger version

Click for larger version

 

     Area Harvested

 

2008

2009*

State

1,000 Acres

1,000 Acres

FL

401.0

393.0

HI

22.8

22.0

LA

405.0

400.0

TX

39.2

39.0

US

868.0

854.0

* Forecasted


Nass Acreage–Click for all Crops

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Na Wai Eha effort seen as agriculture threat

Maui News
By HARRY EAGAR, Staff Writer

WAILUKU ? Steve Holaday, the former manager of Maui?s last sugar plantation, testified at Thursday?s session of the Na Wai Eha contested case that more is involved than allocated water from four West Maui watersheds.

?My fear is that no matter what happens here, it?s going to be the triggering event for what happens to use in East Maui, and the triggering event for the rest of the state. This is the tip of the iceberg.?

The result, Holaday said, could be the collapse of agriculture throughout the islands.

Read Complete Article Here

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Disaster Preparedness

Disaster Preparedness
How Prepared is Your Farming Operation?

Maui Extension Office
Monday, November 26, 2007
11 am ? 1:30 pm

Natural disasters, such as droughts, floods, wild fires, hurricanes, pests, and diseases, can cause excessive economic damage to agricultural production. In addition to crop damage, disasters can also affect farm buildings, machinery, animals, irrigation, family members and employees. Disasters along with marketing difficulties can lead to serious downturns in your farm income.

How prepared are you? This workshop is designed to provide you with information on:
1) preparing your operation for a natural disaster and
2) available and affordable crop insurance programs that minimize risk associated with economic losses.
Note: Now that the “Adjusted Gross Revenue” (AGR) insurance is available for 2008, in effect all Hawaii crops can be insured to some degree ? not just bananas, coffee, papayas, macnuts & nursery.

Speakers:
? USDA Farm Service Agency (FSA) administers and oversees farm commodity, credit, conservation, disaster and loan programs. These programs are designed to improve the economic stability of the agricultural industry and to help farmers adjust production to meet demand.

? USDA Risk Management Agency Western Regional Office, Davis. USDA RMA helps producers manage their business risks through effective, market-based risk management solutions.

? John Nelson from the Western Center for Risk Management Education (Washington State University) on the new Adjusted Gross Revenue (AGR) Insurance.

? Dr. Mike Fanning, Executive Vice President, AgriLogic, is a specialist in Agri-Terroism, crop insurance, farm policy analysis, and individual farm risk management.

? Dr. Kent Fleming, an agricultural economist with the University of Hawaii’s College of Tropical Agriculture and Human Resources (CTAHR), is an Extension Farm Management Specialist with a focus on risk management education.

The workshop is FREE and lunch (sandwiches or bentos and drinks) will be provided. For more information, visit the website http://www.ctahr.hawaii.edu/agrisk/ You may also contact Kent Fleming @ 989-3416 or fleming@hawaii.edu or Jan McEwen @ 244-3242 or jmcewen@hawaii.edu

Please call the Maui Extension Office at 244-3242 by November 21, 2007 to register for this seminar.

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