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USDA Increases Sugar Marketing Allotments for 2007 Crop Year

Jul 14, 2008

In response to the tightening domestic sugar market, the U.S. Department of Agriculture last week increased the Overall Allotment Quantity for sugar for the 2007 crop year by 500,000 short tons, raw value. The Overall Allotment Quantity is the amount of sugar that may be marketed in the United States without being subject to penalties.

USDA expects this action will eliminate allotment restrictions on domestic sugar beet and sugarcane processors and will increase the marketable sugar supply for the 2007 crop year by 100,000 to 200,000 tons. IDFA, along with others representing sugar-using companies, had met several times with USDA urging such an action. In 2006, the dairy industry used approximately 1.1 billion pounds of sugar, representing 12% of the total amount of cane and beet sugar used for industrial food processing in the United States.

"IDFA applauds the action by USDA to increase the Overall Allotment Quantity in order to make more sugar available for the domestic market, including dairy processors," said Clay Hough, IDFA senior group vice president. "However, IDFA remains concerned about tight domestic supplies of sugar and urges USDA to expand both the raw and refined sugar import quotas as well."

To read USDA's press release, click here.


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