ManageMent’s Discussion anD analysis The contract with the Growers stipulates a fixed price for all beet sugar derived from the beets processed in addition  to a scale incentive as the price of raw sugar increases. As a consequence, the Company is exposed to fluctuations in the  #11 world raw sugar price for all domestic beet sugar volume sold against the #11 world raw sugar prices, which is  approximately 60,000 metric tonnes.  Pricing In fiscal 2013, the price of raw sugar fluctuated between U.S. 15.93 cents per pound and U.S. 21.77 cents per pound, and  closed at U.S. 16.87 cents per pound at the end of the fiscal year, which was approximately 2.71 cents lower than the closing  value at September 29, 2012.The price variation during the year was less than in fiscal 2012 when raw sugar prices fluctuated  between U.S. 18.81 and U.S. 28.35 cents per pound.The world sugar market continued to trend downwards as world sugar  production exceeded consumption for a second consecutive year. India and Thailand produced near record crops, while  Brazil exceeded the previous year’s output and produced a record crop.  The price of sugar deliveries from the Montreal and Vancouver raw cane facilities is directly linked to the price of the #11  world raw sugar market on the ICE.All sugar transactions are hedged, thus eliminating the impact of volatility in world raw  sugar prices.This applies to any refined sugar sales made by these plants. Liquid sales to HFCS substitutable customers are  normally priced against competing HFCS prices and are historically the lowest margin sales for the Company.A higher price  of raw sugar may render the Company uncompetitive on certain of these liquid sales. Higher raw sugar prices have the most significant impact on our western operations. In Taber, the raw material used to  produce sugar is sugar beets, for which a fixed price, plus an incentive on higher raw sugar values, is paid by Lantic to the  Growers. As a result, Lantic benefits from or alternatively absorbs some of the results associated with fluctuations in world  raw sugar prices for all volume sold, excluding non U.S. export volume. WORLD RAW SUGAR CANE PRICES Operations Rogers Sugar Inc. 8 Employees are key to our success and employee safety is continuously at the forefront of our priorities. Each of the Company’s  manufacturing operations incorporates occupational health and safety components in its annual planning which are reviewed  monthly by senior management and quarterly by the Board of Directors. 0  5  10  15  20  25  30  Cents per pound – yearly averages (September 1996 to September 2013) Source: #11 ICE