FOR IMMEDIATE RELEASE CONTACT: Phillip Hayes
Thursday, August 13, 2009 202-507-8303
To: Food, Agricultural, and Commodity Reporters
Please direct any large food manufacturers claiming sugar shortages to Jack Roney with the American Sugar Alliance: 703-351-5055. Every sugar producer in America has sugar available to sell, and the American Sugar Alliance can provide contact information for numerous suppliers.
Key points about the U.S. sugar market:
- The sugar industry is unaware of a single buyer having problems finding sugar.
- The USDA increased its sugar supply estimate yesterday by 150,000 short tons bringing America’s sugar surplus ratio to a healthy 11 percent for the year. With sugarbeet and sugarcane harvest around the corner, the United States is entering its highest oversupply period for the year.
- Mexico sent more sugar to the United States this year than ever before—1.45 million tons. Shipments of half as much next year would again leave America with a healthy 11 percent surplus ratio.
- U.S. refined sugar prices are practically identical to sugar prices at this time last year and as far back as the Jimmy Carter Administration. Candy prices have risen astronomically in that time.
- That might explain why many candy companies are recording rapid revenue growth despite the country’s recession. The National Confectioners Association boasts about a 35 percent profit margin for their industry.
- World sugar prices, which reflect a thinly traded dump market of excess sugar supplies from a handful of countries, are at a 28-year high because of anticipated sugar shortages outside of the U.S.
- Between Oct. and April, the U.S. sugar crop will be produced and the Mexican import picture will become clearer. That will give the USDA plenty of time next spring to import additional supplies if necessary.
To schedule an interview with a U.S. sugar producer, please contact:
Director of Communications
American Sugar Alliance