The Ordway new era., 1920-04-02
(Advertising)
The Beet Sugar
Industry Problem

The following is an editorial from
FACTS ABOUT SUGAR" taken
from the issue of March 27, 1920. en-
titled The Beet Sugar Industry's Big
Problem:'
While the beet sugar industry IL
conducted with a high degree of ef-
fiency there is one phase of it's oper-
alton in which Improvement is ur-
gently needed. That is in relation
I ship between the sugar companies
and the growers of beets.
/ It is natural and perhaps inevita-
BILE that the differences of opinion
! should develop as to the prices and
methods of payment for the crop. Be
tween the minimum figure below
VIII ich the farmer finds it more profi-
table to cultivate other crops and the
maximum above which the compan-
les find It less Improbable to close
their factories than to operate them
there is margin wnich must cover
the profits of both parties. The pro-
per division of this margin may be
subject of negotiation and compru-
mise but such negotiations can and
should be carried on in a business
like way.
This is not council of perfection.
the reason that it will operate to the
the companies. The method of ad-
iustment by public controversy is ex-
pensive to both sides. The struggle
to obtain fifty cents or dollar a ton
more frequently delays the work of
preparing the soil for the crop. In
stead of plowing his beet fields in the
fall. which is the best time. the
grower waits until after his contract
is finally settled. which Is frequently
80 far along in the spring that he IA
late in getting in his crop, is behind
~ h's work thruout the season and
obtains final Weld of immature
beets which nets him less than would
full crop OF higher sugar content
at a lower rate. The company is un-
able to place its orGcrs for bags. fuel
and other supplies until its officers
"au form apnroximatelv an idea of
the volume of beets to be handled
and its operations are handicapped
~ consequence. Abandoned acreage
'Hfrrior Yields and low quality of
heets resnltirg from DELAYS and lack
nf cocneration leave both grower and
manufa "turer dissatisfied
Profitable operation of a beet su-
gar factory or sugar beet fields de-
rends on capacity production. The
grower who. by careful and thoro soil
preparation and cultivation, by prom
rt action against diseases or insects.
by the liberal use of fertilizer and the
employment of up-to-date tools and
methods, produces crop of fifteen.
eighteen or twenty tons per acre of
high grade beets can realize far
greater profit than ne can from a
yield of seven or eight tons per acre
under Indifferent cu:tivation. The
extra time and effort required is
more than counterbalanced by the
higher cash return. The factory that
runs at full capacity thruout the sea-
son can earn reasonable return on
n smaller margin per bag because it
fills so many more Gags while its ov-
erhead costs are net materially in
creased The Importance of this fac
tor is recognized in the contracts put
out by some of the largest companies
this season which provide for an ex-
ira payment for beets il the total su
gar production reaches or exceeds a
certain specified amount. The bene-
fit OF higher yields extends both to
growers and to manufacturers. but 1t
is seldom that the best methods of
attaining this result are made the
subject OF careful consideration be-
tween them.
Our observation has been that
large part of the trouble between
beet growers and sugar companies
has been caused by outsiders who
have stirred up i'll feeling among the
former from motives not at all relat-
ed to a sincere consideration for
their welfare. To certain degree
II has been encouraged by stiff
necked attitude on the part of COM
pany officials who have refused to
discuss prices with representatives OF
their growers but have insisted on
confining their business relations to
individual farmers. Since uniform
prices necessarily prevail in the ter
ritory of every company we can see
no good reason why group confer
ences should meet with objection pro
vided the groups are really represen-
I tative. To demand that the compan-
les shall submit to the dictation of
outside individuals who have moth
I fng at stake either in the growing OF
beets or the manufacture of sugar is
altogether unreasonable.
Misunderstanding arise from lack
of frankness on both sides. Growers
are mislead by unfounded reports of
enormous profits earned by sugar
companies and company officials do
not take the trouble to correct these
statements. Farmers put forward
exaggerated figures as to the cost OF
making their crop and insist that
these shall be the basis of price agree
ments. The heat of acontest over
prices is not time when frank sta
tements of fact are likely to be Of
fered or accepted. In July and Aug
ust, when there is iull in the activ-
tiles of growers and companies alike
is far better time to get together
fo.. q f,.l a.,a s..ia.. .lisa..nrio., Of