Federal Judge's Ruling Threatens Sugar Beet Industry

Strategic Insights -

The sugar beet industry in the Red River Valley, the largest beet growing region in the country, is facing uncertainty following a federal judge's decision to overturn the approval of Roundup Ready sugar beets. The ruling, made by U.S. District Judge Jeffrey White, cites the Department of Agriculture's failure to adequately assess the environmental impact of the genetically modified beets. The judge has ordered the Department to produce an environmental impact statement, which could lead to a ban on the use of the Roundup Ready technology. The sugar beet industry, which produces over half of the sugar in the U.S., is now facing the possibility of a significant shift in production practices.

Key Takeaways:

  • The Roundup Ready sugar beets, developed by Monsanto Co., have been planted commercially since 2007 in Wyoming, and their use has become widespread in the Red River Valley.
  • Over 90% of the region's beets have the transgenic trait, but some farmers have chosen to plant conventional beets due to lower weed pressure and to save money on technology fees.
  • American Crystal Sugar Co., a major player in the industry, has been granted intervenor status in the case and will be involved in the remedies phase.
  • The company's president, David Berg, believes that the production of Roundup Ready sugar beets is good for the industry and the food supply in the country.
  • The judge's ruling has ordered the U.S. Department of Agriculture to conduct a full environmental impact statement, which could lead to a ban on the use of the Roundup Ready technology.

Statistics:

  • Over 50% of the sugar produced in the U.S. comes from sugar beets.
  • The Red River Valley is the largest beet growing region in the country.
  • 90-95% of the region's beets have the transgenic trait.
  • 50% was the estimated rate of immediate conversion to Roundup Ready technology in 2008.
  • The Roundup Ready technology was first commercially planted in Wyoming in 2007.
  • 2009 was the year when over 90% of the region's beets had the transgenic trait.

Sources:

  • The Grand Forks Herald, N.D.
  • The Associated Press
  • McClatchy-Tribune Information Services
  • Monsanto Co.