FOR IMMEDIATE RELEASE                                             CONTACT:   Phillip Hayes

Monday, August 2, 2010                                                                                202-271-5734 (cell)

From the International Sweetener Symposium:

USDA Cautious in Sugar Program Administration Because of Uncertainty

VAIL, Colo.—Wild price swings on the world market and continued uncertainty over sugar imports from Mexico under NAFTA have forced the U.S. Department of Agriculture (USDA) to exercise more caution in administering U.S. sugar policy, a department official today told participants at the 27^th International Sweetener Symposium.

Dr. Dan Colacicco, the director of dairy and sweetener analysis for the USDA, explained that the USDA is particularly cautious in the beginning of the year with “irreversible actions,” such as increasing foreign sugar imports.

“The USDA is in a very difficult position, but they have been very disciplined in waiting for accurate market information before making major policy moves,” said Luther Markwart, executive vice president for the American Sugarbeet Growers Association.  “Had they reacted to assumptions or speculation last year, the results would’ve been catastrophic.”

Markwart was alluding to speculation from food manufacturers last August, which lobbied aggressively for an immediate import increase to head off possible sugar shortages.  But these shortages never materialized, and according to USDA figures, the crop year concluded with more than 1.2 million tons of surplus sugar—a far cry from a shortage.

“If the USDA would’ve caved to food manufacturers’ demand for more foreign sugar, market oversupplies would have sent farmers’ prices down sharply,” Markwart added.  “Of course, sugar policy is designed in such a way that the USDA can act quickly if it needs to, so there is no need to speculate.”

After examining hard market data and consulting with sugar producers and buyers, the USDA announced import increases in April and July to ensure the market stays in balance this year and again concludes with ample stocks.

In a statement made at the time of the July announcement, sugar producers said the move underscored “just how well U.S. sugar policy works and how it gives the Agriculture Secretary the tools and flexibility needed to maintain adequate supplies of sugar at affordable prices.”

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For more information about the International Sweetener Symposium, visit www.sugaralliance.org

Symposium audio files can be downloaded at www.ASAradio.org