The Rocky mountain sugar growers' Cooperative: "Sweet" or "sugar-coated" visions of the future?

Gary W. Brester, Michael A. Boland

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

In late 2001, sugarbeet producers in Montana, Wyoming, Colorado, and Nebraska were contemplating the formation of a new generation cooperative to purchase sugarbeet processing facilities from Tate and Lyle North American Sugars, Inc. The U.S. sugar industry critically depends upon U.S. sugar policy. In recent years, sugar and sugarbeet prices have been relatively low. This case examines the competitive, strategic, investment, and risk issues associated with this cooperative venture. The case places students into a decision environment that existed in the latter part of 2001. Thus, the Farm Security and Rural Investment Act of 2002 (FSRI) had not been finalized. In addition, a variety of ownership and consolidation issues contributed to much uncertainty regarding the future of sugarbeet processing. Students are asked to calculate a weighted average cost of capital and prepare projected cash flows using financial information in the case.

Original languageEnglish (US)
Pages (from-to)287-302
Number of pages16
JournalReview of Agricultural Economics
Volume26
Issue number2
DOIs
StatePublished - Jun 1 2004

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