Helping Growers Become Owners
As of February 13,
2002, Michigan Sugar Company was officially acquired by Michigan Sugar
Beet Growers, Inc., a cooperative of more than 1,000 sugar beet
growers. The formation of the cooperative and acquisition of the
bankrupt company was a sweet success for Saginaw County — but it was
equally valuable for the entire state. Michigan’s sugar beet industry
is estimated to contribute approximately $115 million to the state’s
economy annually.
SFI played a
significant role in the deal from the earliest stages,
assisting the cooperative in obtaining $210,000in grant funds from the USDA Rural Development
Administration to explore the formation of a cooperative.
SFI also facilitated a meeting with the MEDC to discuss
sugar-related legislative issues — and wrote letters in
support of a $5 million loan from the state. In addition, SFI helped the budding cooperative secure a USDA Value Added
Product Market
Development Grant in the
amount of $500,000 for working capital to get the new
organization up and running.
In the final deal, Michigan
Sugar, headquartered in Saginaw Township, received a
zero-interest loan granted by the state of Michigan. The new cooperative also assumed $18.5 million of Michigan
Industrial Development Bonds as part of the acquisition. As
a result, the take over by the new cooperative retained 350
jobs at processing plants in Caro, Carrollton, Croswell and Sebewaing, which now continue to produce and market the
"Pioneer Sugar" brand.
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