Sugar Policy

Why Sugar Policy Matters to Dairy Processors

IDFA's ice cream and flavored milk members, about 200 companies in total, use sugar in their products and are affected by domestic supply levels. These companies employ nearly 35,000 people.

The U.S. market for sugar has been uncharacteristically tight over the past year, especially in regards to refined cane sugar supplies.

The U.S. Department of Agriculture projects that available sugar stocks for this fiscal year will provide less than 10 percent of total domestic demand for sugar, and the typical stocks-to-use ratio is about 15 percent. This projection marks the lowest stocks level on record at USDA and represents the equivalent of a three-week supply for domestic manufacturers.

Sugar beet production, an alternative to cane sugar used in U.S. manufacturing, has also experienced downturns recently. Planting intentions for 2009 only increased 6 percent, with little to no increase included in eastern parts of the U.S. This only contributes the supply crunch, which exacerbates the stress on sweetener markets.

The two tools of the U.S. Sugar Program - import quotas and marketing allotments - are contributing to these supply problems. IDFA is continuously working to remedy this problem by advocating a sugar policy that will ensure adequate and affordable supplies of quality imported and domestic sugar.

 

 

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