"It's a joint venture between us and this farmer group. From their point of view it takes then one step farther into the value chain because they had mills that made raw sugar, but now they are going to be half owners of a refinery," said Bill Brady, Cargill spokesman.
Construction of the Reserve, Louisiana plant is scheduled to begin in the spring of next year. The project is subject to final corporate approvals by Cargill and LSCPI. LSCPI, a marketing co-operative representing 10 cane mills and 700 farmers, will provide the raw sugar or about 800,000 tons a year. Cargill will sell and distribute the refined sugar products to food and beverage customers. This is Cargill's third marketing alliance with US sugar producer groups in the past three years.