| USDA Heeds Mexico’s Warning, Likelihood of TRQ Increase Dims |
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| Press Releases |
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FOR IMMEDIATE RELEASE CONTACT: Phillip Hayes Sugar supplies are estimated to increase by 320,000 tons because of higher than expected imports from Mexico, according to USDA figures. With this additional sugar, the country’s forecast sugar surplus ratio for the year swelled to nearly 12 percent, up from the USDA’s earlier 4.6 percent projection last Sept. Mexican government officials first cautioned the USDA that it was underestimating shipments of sugar from Mexico in a Jan. 28 letter. That letter, from Mexico’s Secretary of the Economy, also asked the USDA “to consider the new [Mexican import] figures provided before allocating any import quotas to third countries.” Despite Mexico’s warning, industrial sugar users have for months pressured the USDA to increase imports from the rest of the world to further depress sugar prices and help boost food manufacturers’ profits. This, U.S. sugar producers explained in a Feb. 17 letter, would send sugar prices below the break-even point, leading to forfeitures on sugar loans and taxpayer cost. “The U.S. market is adequately supplied with sugar,” the American Sugar Alliance (ASA) wrote to USDA Secretary Tom Vilsack. “We implore you not to take any action on sugar imports.” USDA’s acknowledgment today of additional Mexican sugar lessens the likelihood that more sugar will be brought in from other countries, noted ASA economist Jack Roney. “There’s more than enough sugar available at a reasonable price,” he said. “We’re pleased that the USDA has not announced any import quota increases this year and are hopeful they will continue to act judiciously in order to keep the raw sugar prices out of forfeiture range.” -0-
To learn more about sugar policy, visit www.sugaralliance.org. |
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