The Sidney herald., 1957-04-04
Beet Sugar
Industry Feels
Initiation Squeeze

Colorado Springs, Colo. - Tn
beet sugar industry is caught il
an inflationary squeeze Of mount
ing high costs and government
controlled low sugar prices, c. M
Nicholson, vice president of Holl,
Sugar Corp. said at the com,
pany's annual meeting here.
Nicholson addressed so Holl,
executives, company manager,
and research scientists from Colo.
RADIO, California, Montana anc
Wyoming at the two-day meet.
ing at the Broadmoor Hotel. He
was introduced by President Mer-
rill Shoup who welcomed the
visiting officials.
Charging that the Department
of Agriculture has increased sugar
production quotas and taken other
actions to control prices at I'M
reasonably low levels, Nicholson
said that at the same time grow
ers and professors are paying
the highest costs in the history
of our industry"
Using the 1947-49 period as a
base" he said, 1--WE find that our
cost items have risen from rs to
as high as 100 per cent in some
cases."
Cost of coke is up 2 per cent,
Nicholson said, rail rates are up
"a per cent, wages from 35 to
so per cent, fringe benefits 90
per cent and such manufacturing
items as beet slicing knives and
values r up IA and So per cent
respectively.
THE farmer has not been free
from this c~ost-price squeeze eth
err" he said. THE cost of a har-
vester today is As per cent more
than it was in the l947-49 period
and tractors have doubled in cost
during the same time"
While these cost items have
gone up the Department of Agri-
culture - through provisions of
the Sugar Act - has raised the
1857 consumption quota for the
United States from the initial es-
of 8,800,0 900 tons of sugar
to 9,O0O,0 900 tons, Nicholson said.
One such action of the depart
nent is the increase in acreage
allotments from 100000 in 1856
o $4,000 acres in 1857, he said.
1.-The ultimate effect of all of
.hese actions must be - and in
act is intended SO - to depress
he price of sugar." Nicholson
aid.
Nicholson pointed out that the
world price of sugar now is high
than the U. S. price but that
S. producers, who may be
aced with heavy surplus stocks
f sugar through the increased
reduction quotas, may be pre-
ented by the USDA from selling
hat sugar abroad.
European production from last
ears beet crop is down 5O0,0 900
ons," he said. "Mexico's sugar
reduction fell short of needs
y 100, 900 tons and Cuban sugar
locks have dropped from 3,000,- .
90 tons to approximately $780, 900
:
Thus, he said, there is a world :.
portage of sugar but plenty in
lie United States. !
Eve are not going to consume .
900, 900 tons of sugar in the .
nited States" Nicholson said, :
md when these huge stocks :
.ach the market they are bound :.
depress the price. Our industry :,
no longer capable of absorbing '
ese tremendous cost increases 6
ithout price relief" !;
Other speakers at the meeting :,
cluded Vice President v. /. :
orris in charge of factory OPP !,
atoms; Vice President r. l.. !
director of sales; Vice !
'esident Dennis O'Rourke, Cen j.
al Counsel; Traffic Manager !.
P. Siddons; C. E. Germany, +
lief Agronomist; R. J. Tingley, = r
est Coast Agricultural Manager; y
S. Hallam, Eastern Agricul- :,
Manager and company re-
arch and production experts. :,