US DEPT OF AGRICULTURE: Sugar and sweetener--Part 2 of 3

0 Comments | M2 Presswire, July, 1998

In 1996, the industry was doubly plagued as corn prices reached very high levels relative to the HFCS selling price. Net corn costs (after the subtraction of byproduct credits) rose to 8.89 and 7.92 cents a pound in the second and third quarters, respectively, of 1996. They have since moderated substantially, providing the sector some relief on costs.

The average net cost for the first quarter of 1998 has been 3.86 cents a pound. The sector has had to face some tough adjustments. In April 1997, Golden Technologies, a relatively small player in the industry, announced it was ceasing operations at its single plant in Colorado. Pro-Gold turned over operations (including marketing) of its Wahpeton facilities to Cargill. ADM acquired a passive investment in the corn wet...