USA: Sugar Industry Sees 'PIK' as Step Toward Correcting Market
The U.S. sugar industry, suffering the lowest prices in 22 years, expressed relief today that action by the Department of Agriculture (USDA) is a positive move toward restoring stability in the supply and marketing of sugar.Specifically, USDA announced it is initiating a "payment-in-kind," or PIK, program for sugar. Under a PIK program, farmers will have the option of not harvesting a portion of their 2000 crop, and in return receive from USDA sugar the agency has or will be obtaining through purchase or forfeiture.Earlier this week, James Horvath, president and CEO of American Crystal Sugar Company, a cooperative owned by 3,000 farmer-shareholders in the Red River Valley of Minnesota and North Dakota, testified before the Senate Agriculture Committee on the value of a PIK program, which is authorized under federal law as a cost-saving measure.He said his farmer-owners "are supportive of this (PIK) concept. We believe it achieves several worthwhile objectives for the industry and the government." He listed these benefits for PIK:
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-food gives you the widest food market coverage.
Paid just-food members have unlimited access to all our exclusive content - including 17 years of archives.
It’s our best ever membership offer – just for you.
Dean Best, editor of just-food
- US food next wave on display at Winter Fancy Food
- Comment: Meal kits in US - don't believe the hype
- How General Mills plans to grow - CAGNY
- Does Kraft Heinz want to swallow Unilever whole?
- Focus: Nestle CEO plan to balance sales, earnings
- Unilever launches operational review
- Kerry operating earnings strengthen on slow sales
- Kraft Heinz pulls Unilever bid
- Glanbia focuses on nutrition with Irish dairy spin
- Kerry's Scanlon to replace McCarthy as CEO