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Archive for February, 2010

Lonnie Champagne Speech at LRS Event

Lonnie Champagne, General Manager, Louisiana Sugar Cane Products.

Governor Jindal, Secretary of State Darden, Treasurer Kennedy, Distinguished Guests, Sugar Industry Representatives, Our Partners Imperial Sugar and Cargill; and the Members of SUGAR.

What a fantastic day this is for the future of the entire Sugar Industry in Louisiana. For over 200 years, the sugar cane industry has played a vital role in the economy of the State of Louisiana, today bringing in over $2 billion of economic benefit to our state. Today that role is strengthened, as the industry moves into the next generation providing greater stability and potential for many Louisiana citizens. You will not find a harder working, determined, dedicated group of people than the folks in the Sugar Industry of Louisiana. I’m proud to say that it is these people who are the Members of Sugar Growers and Refiners, Inc. Sugar is comprised of 8 sugar cane mills, over 700 sugar cane growers and land owners, employs over 10,000 Louisiana citizens, and spans 23 parishes in South Louisiana. Our Members produced over 975,000 tons of raw sugar this year, which represents approximately 70 % of Louisiana’s total sugar cane output and 42 % of the nation’s sugar cane crop. This joint venture will ensure these people, and generations in the future will be able to continue working in the industry they love.

Eleanor Roosevelt once said: “the future belongs to those who believe in the beauty of their dreams”. We are here today, because just over 8 years ago, a group of industry leaders recognized that the Louisiana Sugar Cane Industry had to change and a dream was started. The best alternative they realized was for the mills, growers and landowners to join together and enter the sugar refining and marketing business. After entertaining several options and partners, Cargill and SUGAR were introduced. Cargill’s wonderful reputation and professionalism combined with their desire to enter and become a major force in the U.S. Sugar Industry made them an ideal joint venture partner for SUGAR While the newly formed partnership worked diligently to turn a green field site into this countries largest sugar refinery, Imperial expressed an interest in joining the partnership. After carefully consideration, Cargill and Sugar liked what Imperial could bring to the table. Imperial’s vast experience in refining and packaging sugar, along with their existing Colonial Refinery, made them an wonderful addition. So here we are today, embarking on the future of the Louisiana Sugar Industry.

In the Prayer of Footprints, the author recounts his life and notes that in many of the difficult times, there was only one set of footprints in the sand. He came to realize that it was at those times that he and his burdens were being carried by someone else. When we look over this past 8 year journey, we too realize that the hopes and the dreams of the sugar industry were often times being carried by someone else. The leadership of Brother LeBourgeois and the support of Benjamin Oxnard, started us on a path toward our goal.. I suspect they are both enjoying this moment from above. Mr. Randon Wilson who had the foresight, wisdom and experience to put this joint venture together. Randon, your love and enthusiasm for agriculture and for its producers is contagious and certainly appreciated by all of those in the industry. Your patience and reassurance were our foundation in those long hours of difficult negotiations. We will always relish the many lessons you taught us, the memories we have made and most of all, our friendship. SUGAR, thanks you. Mr. Ragan Richard and the rest of the Phelps Dunbar crew, the many hours, the dedication, determination, and the vast array of knowledge you brought to the table was second to none, we would not be here without you. The many experts of LSU and the LSU Agricultural Center for the assistance and encouragement during this process. Mr. Ben Loup, your counsel, experience and technical knowledge of this industry were exactly what we needed. Alan, Joan and Nicole, your day in and day out support to SUGAR and its Members was invaluable. Finally, to the SUGAR Board of Directors, on behalf of all the Members of SUGAR, we thank you. We thank you for your long hours, your last minute conference calls, your willingness to drive to impromptu meetings, you made great personal sacrifices over the last few years. Most of all we thank you for your patience and your guidance throughout the process.

In Closing, I would like to share with you a writing of C.A. Browne, USDA. “Probably no large agricultural industry of the continental United States is more subject to the uncertainties of fortune than that of the sugarcane. Since the first establishment of the sugarcane industry along the northern coast of the Mexican Gulf it has had to run a constant gauntlet of adversities; at one time from frosts, floods or tornadoes; at another time from insect or cane diseases: and still again from unfavorable trade or economic conditions. The history of our domestic cane industry is for this reason a frequent record of calamities which would give the reader a most depressing picture were it not for the fact that the somber tints of misfortune are offset by the brighter colors of victories over disaster. The story, therefore, is not one of defeat. It is rather an inspiring chronicle that assumes at times the grandeur of a national epic.”
Even though this was written in 1938, it is still rings true today. Mr. Browne tells us that “We need have no fear of the members of this Industry being unable to solve the current problems. The success of our industry depends not only upon such endeavors but also upon our ability to coordinate all these technological activities with one another and at the same time to adapt them to the economic needs of the state and nation. If our accomplishments in this direction are supplemented by wise statesmanship on the part of our legislators, the future prosperity of our sugarcane industry is definitely assured.”

Thank you


New Refinery Strengthens Louisiana Sugar Industry

Louisiana sugar growers and local government see a boon for industry growth and economic development in Louisiana as construction of a state-of-the-art sugar refinery in Gramercy officially gets under way.

Louisiana Governor Bobby Jindal receives a New Orleans Saints hard hat from Lonnie Champagne, General Manager of Louisiana Sugar Cane Products, while speaking to more than 250 attendees at groundbreaking for the new LSR cane sugar refinery in Gramery, La. Jindal emphasized the economic development importance of the new plant to Louisiana.

“This is a great day for our sugar industry and for Louisiana,” said Governor Bobby Jindal, who keynoted the recent groundbreaking of the new Gramercy plant. “Sugar is an important part of our history and it’s an important part of our future.”

The new refinery will produce a million tons of refined sugar a year, making it the largest sugar refinery in North America. It is expected to bring more than 500 construction jobs as well as new plant jobs to the Gramercy area.

The unique nature of the joint venture behind the refinery also promises to safeguard the livelihood of hundreds of Louisiana sugar farmers and strengthen the industry as a whole.

Lonnie Champagne, General Manager, Louisiana Sugar Cane Products.

The new plant will be owned operated and owned by Louisiana Sugar Refining, LLC (or LSR), a joint venture with Sugar Growers and Refiners, Inc., Cargill and Imperial Sugar Company.

Sugar Growers and Refiners represents 700 sugar cane growers and land owners, eight sugar cane mills, and more than 10,000 workers throughout 23 parishes in southern Louisiana. All total, the group provides 42 percent of the nation’s sugar cane crop.

The prosperity of sugar cane farmers is tied to fluctuations in the price of raw sugar. As part owner of the refinery, Sugar Growers and Refiners makes it possible for its members to participate in the marketing and profits of refined sugar.

“Through this joint venture, the Louisiana sugar industry takes a giant leap forward into the next generation,” said Lonnie Champagne, general manager of Sugar Growers and Refiners. “By combining our farming expertise with the refining and marketing expertise of Imperial and Cargill, our growers and mill owners will benefit from the entire sugar production process, which takes the sugar from the field to the table.”

Frank Minvielle, chairman of Sugar Growers and Refiners, said that because of the tight economic situation, the co-op was losing four to six farmers a year and that “the new refinery is a matter of survival.”

Frank Minvielle, chairman of Sugar Growers and Refiners, said, "The new refinery is a matter of survival.”

Minvielle, who also is a sugar farmer and president of Cajun Sugar Co-op, went on to explain that the lending institutions farmers rely on to get crop loans will feel more confident now that sugar growers will have the ability to participate in the price of white sugar.

In his remarks, Governor Jindal stressed this new farm-to-market vertical integration will provide a competitive advantage for Louisiana’s sugar industry. “Indeed, these are the kinds of projects that not only create good jobs for our people, but also strengthen the competitiveness of our agriculture industry.”


Vision for the New Louisiana Sugar Refinery

Gov. Bobby Jindal of Louisiana with Lonnie Champagne of Louisiana Sugar Refining; Alan Willits, President of Cargill Corn Milling North America; and Imperial Sugar CEO John Sheptor.

The three leaders of the joint venture to build the new Louisiana Sugar Refinery at Gramercy, La., took time from ground breaking events on Wednesday, February 3, to talk about their vision for the new million-ton-per-year cane sugar refinery.

Here are comments from John Sheptor, President and CEO of Imperial Sugar Company; Alan Willits, President, Business Unit Leader, Cargill Corn Milling North America; and Lonnie Champagne, General Manager, Louisiana Sugar Cane Products. Then, the ceremonial ground breaking, attended by Louisiana Governor Bobby Jindal.


Louisiana Sugar Refining: A New Era of Competitive Strength

Alan Willits, President, Business Unit Leader, Cargill Corn Milling North America, Lonnie Champagne, General Manager, Louisiana Sugar Cane Products and John Sheptor, President and CEO of Imperial Sugar at groundbreaking of new Louisiana Sugar Refining plant.

Construction now is officially underway on the new state-of-the-art, 3,100 tons per day Louisiana Sugar Refining (or LSR) refinery at Gramercy – a joint venture with Louisiana growers and millers, Cargill and Imperial Sugar Company. The sugar cane refinery – located near both Baton Rouge and New Orleans – signifies a new era of competitive strength for the sugar cane industry in southern Louisiana and America.

For the approximately 700 Louisiana sugar growers, the sugar refinery means economic stability and teaming with reliable production, marketing and distribution partners.

Bobby Jindal, Governor of Louisiana, speaks to more than 250 groundbreaking attendees.

For Imperial Sugar Company, the new refinery will result in the retirement of Imperial Sugar’s existing refinery built originally in 1898. Following the start up of the Louisiana Sugar Refining refinery in 2011, Imperial will own or participate in two of the most modern and safest sugar refineries in North America. Imperial Sugar’s other major sugar refining plant is located at Port Wentworth, near Savannah, Georgia.

Imperial Sugar CEO John Sheptor said construction adjacent to the existing refinery would allow LSR to take advantage of current infrastructure and operational support and promote an orderly transition from the existing refinery to the new, state-of-the-art refinery while at the same time keeping the option of running the existing refinery longer if needed.”

Alan Willits, President, Business Unit Leader, Cargill Corn Milling North America, said:

What each company brings to this alliance creates an almost perfect union. Imperial’s Gramercy site, its existing assets, infrastructure and its commitment to purchasing sugar for its on-site retail packaging business gives LSR strategic benefits and efficiencies that it would not otherwise have realized. The cane growers of this region have a 200+year heritage in growing and milling sugarcane and give LSR a sturdy foundation in this region’s rich history. But to fully participate in this industry for the next generation, they needed to take it a step further, into refining finished products and marketing them to food customers.

That’s where Cargill comes in. Cargill has been marketing to food makers for most of our 140 years. We sell flour, salt, flavorings, oils and an array of sweeteners, among many other ingredients. Adding sugar to our portfolio is a natural extension. And there’s no better place to make high quality sugar for those U.S. food manufacturers than right here in Louisiana.

Willits said the joint venture will attempt to follow a path as a good employer, a good supplier to its customers and a good corporate citizen.

When the new sugar refinery is completed in 2011, Imperial will continue to operate the small bag packing facility in Gramercy, with refined bulk sugar purchased from LSR under a long term, market-based supply agreement.

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