More Sugar Dumping

More Sugar Dumping

David Sparks Ph.D.
David Sparks Ph.D.
A fascinating chat with Phillip Hayes, Spokesperson Amer. Sugar Alliance, regarding Mexico’s sugar dumping. “One thing that is really important to keep in mind when you talk about the Mexican sugar industry is that that industry is largely owned and operated by the Mexican government. 20% of Mexican sugar production is government owned. Government there has a big hand in those mills that are privately owned as well. This happens through a number of subsidies and programs. So, what has been occurring is that the Mexican sugar industry has been dumping sugar onto the US market. Those actions, combined with Mexican subsidies, have flooded the US market. It has sent prices spiraling 50% during the course of about 18 months and US sugar reducers were staring at prices that would be the equivalent of about two dollar corn. About $1 billion will be lost this growing season by US sugar producers, and the other important factor as a direct result of Mexico’s actions is that the USDA had to step in to keep the US market from collapsing. That ended up costing taxpayers approximately $278 million so there has been injury as a direct result of Mexico’s actions not only to US sugar producers but to US taxpayers as well.
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