Lonnie Champagne, general manager of Louisiana Sugar Growers and Refiners, Inc.

With rows of sugarcane standing tall beside him, Lonnie Champagne, general manager of Louisiana Sugar Growers and Refiners, Inc., sees a new era ahead for farmers of this Louisiana mainstay crop.

He looks forward to the day when young producers get back into the business, believing Louisiana Sugar Refining, LLC – or LSR as it’s known locally – just might help make that a reality.

“Farming cane in Louisiana is a tough business. And like the rest of the agricultural community, we’ve seen young farmers and ranchers fleeing the farms for better pay and less hours,” says Champagne.

“We probably have the longest, toughest season of harvesting I can think of – starting around October 1 and extending through December 31.”

Sugar Growers and Refiners is an agricultural marketing cooperative of eight sugarcane mills and 725 cane growers in 23 parishes of southern Louisiana. It’s involved in the marketing of raw sugar and molasses, annually producing about 950,000 tons of sugar – nearly two billion pounds.

The cane produced on 450,000 acres of Louisiana farmland is delivered to area sugar mills. There, the cane is crushed, the juices are extracted and the sugar is crystallized. The sugar is then stored in warehouses throughout the state. Sugar refiners, such as Imperial Sugar Company (ISC), draw from these warehouses and convert the raw sugar into the familiar sugar products used in kitchens everywhere.

According to Champagne, cane farming requires a significant capital investment in specialized equipment to harvest and deliver the crop. He says the higher prices in sugar during the last couple of years have helped farmers catch up economically and repair their balance sheets.

“It’s the first opportunity our growers have had in the last 20 years to replace tractors, pay off debt and put themselves on a better footing,” says Champagne.

Sugarcane has been produced in Louisiana for more than 225 years, with families passing down their farms for multiple generations.

November 2009 marked the beginning of a new era for Louisiana sugar growers and producers. A joint venture formed among Imperial Sugar Company, Cargill and Sugar Growers and Refiners will bring about the first large-scale integration of growers, mills and refiners – enabling farmers to participate in the marketing and profits of refined sugar.

Champagne says his organization decided 10 years ago to pursue a vertical integration model, and though it took a long time, “it was well worth it.”

The venture will result in a new sugar refinery, which has been under construction since the end of last year. It’s planned for completion in late spring or early summer 2011. The new facility is located in Gramercy, La., next to ISC’s existing refinery.

Pointing to stalks of sugarcane reaching 10 feet in height, Champagne says the cane growing on farms today will likely provide some of the first raw sugar to be processed in the new refinery.

“This year started out with a hard winter and a dry spring, which allowed our producers to get into the fields early and do their work – and the cane has been growing ever since,” he points out.

Champagne hopes the LSR venture will secure the future for the next generation of growers and bring “a resurgence of young producers in south Louisiana.”

News media interviewing Lonnie Champagne during LSR event, Feb. 3.

NEW ORLEANS — After years of fighting storms and flat prices, Louisiana sugar cane growers at the heart of a $2 billion industry are hoping for better financial times as farmers and the food industry unite to get the product from the fields to the consumer in a direct line.

Construction is under way on a $190 million sugar refinery near Gramercy, northwest of New Orleans, that will be able to produce 1 million tons of sugar annually. In a joint venture with two food giants – Cargill Inc. and the Imperial Sugar Co. – growers say the refinery, expected to begin processing in 2011, will give them a steady market for Louisiana cane that will support higher prices.

It’s the first time state growers have been involved in such a field-to-consumer venture. For Cargill, it will provided the company’s first entry into the processed sugar market.

“Sugar is a critical ingredient to the customers we already serve. It enables us to work more effectively with a broader base of customers on ingredient innovations,” Cargill spokeswoman Nicole Reichert said.

Also a partner in the refinery is Sugar Growers and Refiners Inc., a marketing cooperative consisting of 700 Louisiana cane growers and eight cane mills.

Click here to read the entire AP story.

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