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.

“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.

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.”

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.”