Growers explore feasibility of Ontario sugar beet processing plant

Tuesday, January 12, 2016

by JIM ALGIE

Improved sugar beet prices and agronomics as well as emerging industrial uses for sugar may justify major expansion of the crop as well as new processing in southwestern Ontario, Ontario Sugar Beet Growers’ Association President Mark Lumley said Wednesday.

Currently, all 100 members of the Ontario association supply raw product from about 10,000 acres to the Michigan Sugar Cooperative based in Bay City, Michigan. Lumley grows 686 acres of sugar beets on his 4,000-acre Lambton County cash crop operation and predicts a tripling of Ontario acreage if proposed, new processing in Sarnia proves feasible.

Lumley was among the first growers recruited in 1996 when Michigan Sugar came to Lambton County looking for potential growers of what had historically been a relatively common crop for the region. A 1967 change in Canadian government tariff policy over cane sugar imports essentially forced Ontario growers out of sugar, Lumley said in an interview.

The Ontario Sugar Beet Association has spearheaded a feasibility study for new Sarnia-based processing facilities expected to cost at least $100 million. Lambton College researchers have begun a preliminary study for completion this fall.

Assuming those numbers make sense, a more detailed case study would follow as part of a relatively ambitious plan to begin production within five years, Lumley said.

Sugar beet prices have improved since the 1960s. As well, growing techniques developed through continuing industries in the United States and Europe have evolved to the point where renewed Ontario production makes sense, Lumley said.

Yields have doubled over the past 40 years to 30 tonnes per acre. New coated mono-germ seeds produce much stronger emergence of more disease-resistant, higher-yielding crops.

As well, sugar beets can compete with corn as feed stock for the emerging industry that uses renewable plant-source carbon for a variety of chemicals, Lumley said.

Canada is “one of the only countries in the world that doesn’t have a domestic sugar industry, whether beet or cane,” the association president said, allowing for the exception of a small amount of domestic sugar beet production in Alberta. “The fact we are such a large country that uses so much sugar and has the availability of growing sugar with our land, it’s really a shame that we’re not doing it and really the only reason we’re not doing it now is that we haven’t been doing it.”

Lumley envisions an independent company in a commercial partnership with Michigan Sugar; but no decisions have been made yet about corporate organization for the new Sarnia-based processing company. Even so, grower ownership of sugar beet processing and handling is typical in North America and works well, Lumley said. He expects to begin recruiting new growers within the year.

The existing sugar beet association has helped with costs so far but Lumley expects “some sort of initial share offering” to help finance start-up costs.

“Ultimately, the current growers are not going to be the future grower stakeholders,” Lumley said. “Some of them will be expanding their acreage but there will be room for about 20,000 acres of new growers,” he said.

Transport issues mean new production will likely occur close to any new processing facilities.

“Freight is always a big thing with sugar beets; they’re 80 per cent water,” Lumley said.

Sarnia’s existing industrial infrastructure — particularly bio-industrial developments such as the new BioAmber Inc. plant making chemicals from corn sugar — make it ideal for sugar beets, Lumley said. Potential sales to BioAmber are part of the Ontario sugar beet opportunity, he said.

“Crude oil is just a whole lot of carbon amongst other things,” Lumley said. “We can get carbon from photosynthesis and that’s what the sugar beet is really good at,” Lumley said. BF