A new report has found that U.S. sugar prices do not impede the financial performance of sugar-using firms. And the report’s data is good news for American sugarcane and sugar beet growers.
The analysis conducted by four agricultural economics professors at the University of Tennessee and Oklahoma State University rejected claims from sugar-using firms “that as the U.S. price of sugar increases relative to the world sugar price, this has a negative effect on their profits. The American Sugarbeet Growers Association’s Luther Markwart says the analysis confirms what their industry has known for years.
“For decades, our customers have always kind of picked at U.S. sugar policy saying, hey, the price is too high” said Markwart. “If we could just get lower sugar prices, we would be able to pass that on to consumers. And we’ve heard that for 50 years. And the fact of the matter is that’s not true.”