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Sterling Sugars, Inc. is a grower and processor of sugarcane, from which it produces raw sugar and blackstrap molasses. Cane residue (bagasse), also a by-product, is used as the primary fuel for the Company's steam boilers. For the fiscal year ended July 31, 2004 (fiscal 2004), the Company processed 901,639 tons of sugarcane and produced 95,237 tons of sugar. All sugar produced by Sterling is sold to a few major sugar refiners and candy manufacturers under sales contracts. Molasses is sold to a major molasses distributor under sales contracts. The raw sugar factory operated by the Company is situated on 65 acres of land outside the city of Franklin, Louisiana on Bayou Teche.(Source: 10-K)