U.S. SUGAR AND SOUTHERN GARDENS CITRUS
ASSESS CROP DAMAGE

CLEWISTON, FL.— October 8, 2004 – This season’s unprecedented string of major hurricanes has dealt a crushing blow to the state’s agriculture industry, including the crops of US Sugar and Southern Gardens Citrus.

Hurricane Frances knocked down a significant amount of sugar cane, making it difficult to harvest mechanically. Although the crop had begun to recover, the second blow dealt by Hurricane Jeanne has ruined much of the crop.

It is difficult to accurately assess crop destruction before the production process is complete. However, it is estimated that sugar losses for the immediate year will be between 11 and 12 percent of the total forecast production. This amounts to about $90 million. In addition, related damages such as replanting and equipment loss are estimated at $35 million. Damage to the subsequent years’ sugar yields could be as much as $20 million. All told, these hurricanes have cost United States Sugar Corporation approximately $145 million.

After surviving the first three hurricanes with only minimal damage Southern Gardens Citrus was unable to avoid the impact of Hurricane Jeanne. The most noticeable damage occurred in the Dunwody / Alcoma Groves, where there has been an estimated fruit loss of approximately 100,000 boxes. The residual effects of the hurricane are expected to last up to eight weeks, during which time additional fruit will fall from the trees. Other Southern Gardens Citrus groves, such as Devil’s Garden and Southern have suffered minimal fruit loss and little structural damage to buildings.

Southern Gardens Citrus is still tallying the damage inflicted by Hurricane Jeanne, however, Florida Citrus Mutual, the state’s largest association of citrus growers, estimated $485 million in damages to the citrus crop from Hurricane Charley and Frances. The Florida Department of Agriculture and Consumer Services has estimated total agricultural loses at close to $3 billion.