Financial pressure is intensifying across the U.S. sugar industry as prices fall and costs climb. American Sugar Alliance Director of Economics and Policy Analysis Rob Johansson says growers are facing a tough environment. “We’ve seen prices come down pretty substantially over the last couple of years, so we’re looking at a 30 percent decline in prices for the last two years. At the same time, our cost of production is up, which is making it very difficult for a lot of sugar beet and sugar cane growers out there to make the finances work for this coming year.” Increased imports are a key factor, putting downward pressure on prices and cutting into domestic sales. “Prices are lower than our cost of production, and it’s not a sustainable situation.” He adds that policymakers are being urged to review trade enforcement and import practices to protect the long-term viability of U.S. sugar production.
