USDA Cuts C&H; Sugar Re-Export Period

Alexander & Baldwin’s sugar unit was ordered by the U.S. Department of Agriculture to re-export sugar more quickly because extra imports could be depressing U.S. sugar prices. The sugar re-export program lets companies import sugar outside the quota, provided that it’s re-exported, normally within 90 days. That way, plants are kept running and, in theory, it doesn’t depress domestic prices. The department cut the re-export period granted to California & Hawaiian Sugar Co. on 100,000 tons of sugar to 180 days from five years. C&H; Sugar, based in Crockett, Calif., won permission to import 50,000 tons of sugar on Oct. 26, because the USDA had not yet decided import quotas for the fiscal year that began Oct. 1. Earlier, the company had obtained permission to bring in 50,000 tons. “We’re basically asking C&H; Sugar Co. to take about 100,000 tons of sugar out of the market,” said Steve Hammond, the department’s sugar analyst. “It’s not good news” for C&H;, said H. Wesley McAden, a company lobbyist, who declined further comment. The announcement was made after markets closed Wednesday. Alexander & Baldwin shares rose 59 cents to close at $22.63 on Nasdaq. U.S. sugar for March delivery fell 0.03 cent to 18.22 cents a pound on the Coffee, Sugar & Cocoa Exchange in New York. Traders could not be reached for comment.