U.S. Sugar

U.S. Sugar Corporation is a privately held agricultural company headquartered in Clewiston, Florida, at the southern end of Lake Okeechobee. Founded in 1931 by industrialist and philanthropist Charles Stewart Mott, the company was created from assets acquired from the failed Southern Sugar Company and became one of the central agricultural businesses in South Florida. Its core activity is the cultivation and processing of sugarcane, making it the largest sugarcane producer in the United States by volume according to the referenced encyclopedia material. The company has also operated in citrus, vegetables, cattle, and related agricultural and transportation activities. The company's principal landholdings and farming operations extend across more than 230,000 acres in Hendry, Glades, Martin, and Palm Beach counties. Its production base is concentrated in and around the Everglades Agricultural Area, where U.S. Sugar is one of the major participants commonly grouped with Florida Crystals and the Sugar Cane Growers Cooperative of Florida as South Florida's “Big Sugar.” The company has been an important employer in the Glades region, with more than 2,500 employees cited in the reference material. U.S. Sugar's history reflects the changing economics and technology of American agriculture. It expanded processing capacity during the postwar period and opened the Bryant Sugar House in 1962. At the time, that mill was described as the world's largest and most advanced sugarcane-processing facility, with a nominal capacity of 5,000 tons of cane per day. When sugar prices weakened during the 1970s and food manufacturers increasingly adopted corn syrup, the company diversified into cattle, citrus, and vegetables. It acquired South Bay Growers in 1980, entering large-scale production of lettuce, celery, and other leafy vegetables, and began planting orange trees in the mid-1980s. The ownership structure also changed substantially. In 1983, U.S. Sugar established an employee stock ownership plan as part of an effort to move the business into private ownership. The transaction involved substantial long-term borrowing and was challenged by some shareholders who believed the offered price undervalued their shares. In October 1987, an offer for the remaining publicly held voting shares completed the move to private ownership and reduced the company's public reporting obligations. Later disputes involving employee stock ownership plan valuations and alleged outside acquisition offers led to litigation in 2008. The company has faced labor, technology, environmental, and public-policy controversies. Historical reference material states that U.S. Sugar was charged with violations involving slavery in the 1940s. In the 1990s, the adoption of mechanical cane harvesting displaced field workers, leading to a class-action case that resulted in a payment of more than $5 million in 1998. U.S. Sugar also closed or reduced parts of its vegetable and sugar-processing operations as some businesses became unprofitable, including the closure of the Bryant mill in 2007. The company's land and water position has made it a significant participant in debates over Everglades restoration. In 2008, the State of Florida proposed purchasing a large portion of U.S. Sugar's land and manufacturing assets for restoration under the Comprehensive Everglades Restoration Plan. The proposal was later revised, retaining some sugar-milling operations. In 2010, U.S. Sugar sold 26,800 acres to the South Florida Water Management District for the River of Grass restoration project. Despite these transactions, the company remains an operating agricultural enterprise with sugarcane as its central business and with additional production in refined sugar, sweet corn, oranges, and other farm products.

U.S. Sugar was established in 1931 after Charles Stewart Mott acquired agricultural and industrial assets near Clewiston, Florida, from the failed Southern Sugar Company. The new corporation became part of the rapid development of commercial sugarcane agriculture around Lake Okeechobee and ultimately developed into one of the largest sugarcane businesses in the United States. During the 1940s, the company faced charges described in reference material as slavery violations. The episode forms part of the difficult labor history of South Florida agriculture. Mott later transferred shares connected with the company to the Charles Stewart Mott Foundation. After the Tax Reform Act of 1969 restricted the percentage of a corporation that a private family foundation could hold, the foundation transferred a substantial block of shares to the Mott Children's Health Center, a charitable medical organization founded in Flint, Michigan. U.S. Sugar expanded its industrial base in 1962 with the opening of the Bryant Sugar House. Its stated processing capacity was 5,000 tons of sugarcane per day, making it a major facility by contemporary standards. Following the death of Charles Stewart Mott in 1973, his son C.S. Harding Mott became chairman. The company then responded to changing commodity economics. Sugar prices weakened during the 1970s, while food manufacturers increasingly used corn syrup, encouraging U.S. Sugar to diversify beyond sugarcane into cattle, citrus, and vegetables. In 1980, the company acquired South Bay Growers, a large vegetable producer associated with lettuce, celery, and other leafy vegetables. In the middle of the decade it began establishing orange groves. The diversification strategy later encountered financial pressure: most of South Bay Growers was closed in 1994 after repeated annual losses, although a salad-processing operation serving large restaurant customers continued while a new owner was sought. The company also closed a sugar mill in 2004 and ended operations at the Bryant mill in 2007. The ownership structure changed through an employee stock ownership plan formed in 1983. U.S. Sugar borrowed heavily to support the transaction, and some shareholders brought a class-action lawsuit because they believed the price offered for their shares was too low. In October 1987, the Mott-related ownership group and the employee plan offered to purchase the remaining voting shares held by public investors. The resulting transaction took the company private and reduced its reporting obligations. The move toward mechanized cane harvesting during the early 1990s had significant labor consequences. Workers who lost field jobs filed a class action, and the company paid more than $5 million in 1998 according to the cited material. A separate dispute emerged in 2008, when employees sued Chief Executive Officer Robert Buker, Chairman William S. White, members of White's family, and the Charles Stewart Mott Foundation. The employees alleged that the employee stock ownership plan had not received full value after outside parties were said to have made higher offers for the company. U.S. Sugar disputed the claim that those offers represented the company's fair market value. The company's landholdings also placed it at the center of Everglades policy. In June 2008, Florida announced negotiations to purchase approximately 187,000 acres and associated production assets for an estimated $1.7 billion under the Comprehensive Everglades Restoration Plan. A revised proposal later reduced the reported offer to $1.34 billion and allowed the Clewiston sugar mills to remain in operation. Critics argued that the revised structure would prolong sugarcane cultivation in the Everglades Agricultural Area. In October 2010, U.S. Sugar sold 26,800 acres to the South Florida Water Management District for the River of Grass restoration project. Today, U.S. Sugar remains a privately held agribusiness based in Clewiston. Its operations cover more than 230,000 acres across several South Florida counties and include sugarcane, refined sugar, citrus, sweet corn, and other agricultural activities. The company remains one of the largest employers in the Glades region and an important participant in the economics, labor debates, water-management disputes, and environmental policy of South Florida.

1. 2010Land sold for River of Grass restoration

   The company sold 26,800 acres to the South Florida Water Management District.

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2. 2008Everglades acquisition proposal announced

   Florida announced negotiations to acquire a large portion of U.S. Sugar's land and production assets for restoration purposes.

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3. 2007Bryant mill closed

   U.S. Sugar shut down the Bryant sugar mill after decades of operation.

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4. 1994Most South Bay Growers operations closed

   Most of the vegetable subsidiary was closed after several years of losses, while a salad-processing operation continued temporarily.

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5. 1987Company became privately held

   The purchase of remaining publicly held voting shares completed the company's move into private ownership.

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6. 1983Employee stock ownership plan formed

   U.S. Sugar created an employee stock ownership plan as part of a privatization effort.

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7. 1980South Bay Growers acquired

   The company expanded into large-scale vegetable production through the acquisition of South Bay Growers.

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8. 1973C.S. Harding Mott became chairman

   Following Charles Stewart Mott's death, his son C.S. Harding Mott assumed the chairmanship.

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9. 1962Bryant Sugar House opened

   U.S. Sugar opened the Bryant Sugar House, a high-capacity sugarcane-processing facility.

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10. 1931Company founded from Southern Sugar assets

    Charles Stewart Mott acquired assets near Clewiston, Florida, and formed United States Sugar Corporation.

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A large, vertically integrated South Florida agribusiness centered on sugarcane cultivation and processing, with diversified crop and livestock operations.

• SugarcaneAgricultural crop1931

  Sugarcane is U.S. Sugar's core agricultural product. The company farms extensive acreage in South Florida and supplies cane for processing into sugar. Its production is concentrated in the Everglades Agricultural Area and makes the company one of the largest sugarcane producers in the United States.

• Refined sugarFood ingredient

  The company processes sugarcane into refined sugar through its South Florida manufacturing operations. Refined sugar is the principal value-added product associated with U.S. Sugar's vertically integrated farming and processing model.

• Oranges and citrusAgricultural crop1985

  U.S. Sugar diversified into citrus and began planting orange trees in the mid-1980s. Citrus remains one of the agricultural categories associated with the company's broader South Florida farming portfolio.

• Sweet cornAgricultural crop

  Sweet corn is among the company's non-sugar agricultural products. It represents part of U.S. Sugar's diversification across food crops grown and managed in the company's South Florida farming system.

• Leafy vegetablesAgricultural crop1980

  Through South Bay Growers, U.S. Sugar entered large-scale production of lettuce, celery, and other leafy vegetables. The subsidiary later experienced sustained losses and most of its operations closed in 1994.

• CattleLivestock1970

  Cattle operations formed part of U.S. Sugar's response to changing sugar-market conditions during the 1970s. The company expanded its agricultural scope beyond crops to include livestock production.

• 2010River of Grass land saleOther

  Everglades restoration programs required acquiring land in and around the agricultural area.

  What changed. U.S. Sugar sold 26,800 acres to the South Florida Water Management District.

  Aftermath. The transaction added land to a public restoration initiative while the company continued operating its remaining agricultural business.

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• 2008Negotiations over land and production assetsStrategy

  Florida sought land for Comprehensive Everglades Restoration Plan objectives while addressing the future of South Florida agriculture.

  What changed. The company entered negotiations for a proposed state acquisition of extensive landholdings and manufacturing assets; the later proposal retained some Clewiston milling operations.

  Aftermath. The revised plan drew criticism from restoration advocates who believed it would extend sugarcane cultivation in the Everglades Agricultural Area.

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• 1983Employee ownership and privatization planStrategy

  The company sought to move toward private ownership and reduce the costs and obligations associated with public reporting.

  What changed. U.S. Sugar created an employee stock ownership plan and used long-term borrowing to support the transaction.

  Aftermath. After further share purchases in 1987, the company became privately held; the structure later generated valuation litigation.

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• 1970Diversification beyond sugarcaneStrategy

  Lower sugar prices and increased use of corn syrup by purchasers pressured the company's traditional business.

  What changed. U.S. Sugar expanded into cattle, citrus, and vegetable farming.

  Aftermath. The company developed a broader agricultural portfolio, although its vegetable operations later suffered repeated losses.

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• 2008Employee stock ownership plan valuation lawsuitControversy

  Employees sued company leaders and related owners, alleging that employee stock ownership plan shares had not received the full value suggested by outside acquisition proposals.

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• 1998Class action following mechanized harvestingControversy

  Workers displaced by the shift to mechanical cane harvesting brought a class action that ended with a payment of more than $5 million.

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• 1940Slavery-related chargesControversy

  Reference material states that U.S. Sugar was charged with violations involving slavery during the 1940s.

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• 2010U.S. Sugar sold land for the River of Grass restoration project

  The company sold 26,800 acres to the South Florida Water Management District for an Everglades-related restoration initiative.

  RegulationOther
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• 2008Florida proposed acquiring U.S. Sugar land for Everglades restoration

  Florida announced negotiations to acquire substantial U.S. Sugar land and production assets as part of Everglades restoration planning.

  RegulationOther
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• 1987U.S. Sugar completed its move to private ownership

  An offer for shares held by remaining public shareholders reduced the company's public ownership and reporting requirements.

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• 1983U.S. Sugar established an employee stock ownership plan

  The company formed an employee stock ownership plan as part of a transaction intended to move U.S. Sugar toward private ownership.

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• 1962U.S. Sugar opened the Bryant Sugar House

  The company opened the Bryant Sugar House, described at the time as a leading large-scale sugarcane-processing mill.

  Product launchOther
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1. U.S. Sugar