Dive Brief:
- American Crystal Sugar will cut output at three of its five plants due to a rail service slowdown that is restricting its storage space.
- Blizzards and subzero weather have delayed BNSF rail cars and the delay could cost the sugar cooperative millions of dollars if it doesn't improve soon.
- American Crystal's CEO said service to the sugar industry has also been impacted by an uptick in crude oil shipments, though a BNSF spokeswoman said those shipments make up only about 4% of overall volume. Some trains are planned to be rerouted, with service from additional crews and locomotives added.
Dive Insight:
It seems no one can escape the recent polar vortexes that have plagued the U.S. with frigid temperatures. The sugar industry was feeling some pain before this, though. Increasing Mexican imports lowered U.S. prices, and sugar beet production per acre has been down, as well. BNSF is said to be catching up on its rail service demand as weather conditions improve, though, and that's certainly welcome news to American Crystal.
