Sugar industry
Enterprises dealing with sugar From Wikipedia, the free encyclopedia
The sugar industry subsumes the production, processing and marketing of sugars (mostly sucrose and fructose). Globally, about 80% of sugar is extracted from sugar cane, grown predominantly in the tropics, and 20% from sugar beet, grown mostly in temperate climate in North America or Europe.
USD per pound
Sugar is used for soft drinks, sweetened beverages, convenience foods, fast food, candy, confectionery, baked products, and other sweetened foods. Sugarcane is used in the distillation of rum.
Several countries subsidize sugar.[1] Globally in 2018, around 185 million tons of sugar was produced, led by India with 35.9 million tons, followed by Brazil and Thailand.[2] There are more than 123 sugar-producing countries, but only 30% of the produce is traded on the international market.
Market
Summarize
Perspective
Sugar subsidies have driven market costs for sugar well below the cost of production. As of 2019, 3/4 of world sugar production is never traded on the open market. Brazil controls half the global market, paying the most ($2.5 billion per year) in subsidies to its sugar industry.[3]
The US sugar system is complex, using price supports, domestic marketing allotments, and tariff-rate quotas.[4] It directly supports sugar processors rather than farmers growing sugar crops.[4][3] The US government also uses tariffs to keep the US domestic price of sugar 64% to 92% higher than the world market price, costing American consumers $3.7 billion per year.[4] A 2018 policy proposal to eliminate sugar tariffs, called "Zero-for-Zero", is currently (March 2018) before the US Congress.[3][5] Previous reform attempts have failed.[6]
The European Union (EU) is a leading sugar exporter. The Common Agricultural Policy of the EU used to set maximum quotas for production and exports, and a subsidized sugar sales with an EU-guaranteed minimum price.[7][8] Large import tariffs were also used to protect the market.[7] In 2004, the EU was spending €3.30 in subsidies to export €1 worth of sugar, and some sugar processors, like British Sugar, had a 25% profit margin.[9]
A 2004 Oxfam report called EU sugar subsidies "dumping" and said they harm the world's poor.[9] A WTO ruling against the EU quota and subsidy system in 2005-2006[10] forced the EU to cut its minimum price and quotas, and stop doing intervention buying.[7] The EU abolished some quotas in 2015,[11][12] but minimum prices remain.[11][13][14] Tariffs also persist for most countries.[14] In 2009, the EU granted Least Developed Countries (LDCs) zero-tariff access to the EU market[7] as part of the Everything but Arms initiative.[8]
As of 2018, India, Thailand, and Mexico also subsidize sugar.[3]
Global players
The top 10 sugar-producing companies based on production in 2010:[15]
| Rank | Company | 2010/11 Output [Mt] | Country |
|---|---|---|---|
| 1. | Südzucker AG | 4.2 | Germany |
| 2. | Cosan SA Industria & Comercio | 4.1 | Brazil |
| 3. | British Sugar Plc | 3.9 | UK |
| 4. | Tereos Internacional SA | 3.6 | France |
| 5. | Mitr Phol Sugar Corp. | 2.7 | Thailand |
| 6. | Nordzucker Gmbh & Co KG | 2.5 | Germany |
| 7. | Louis Dreyfus | 1.8 | Netherlands |
| 8. | Wilmar International Ltd. | 1.5 | Singapore |
| 9. | Thai Roong Ruang Sugar Group | 1.5 | Thailand |
| 10. | Turkiye Seker Fabrikalari | 1.34 | Turkey |
The global sugar industry has a low market share concentration. The top four sugar producers account for less than 20.0% of the market.[16]
Products
Lobbying and marketing
The sugar industry engages in sugar marketing and lobbying, minimizing the adverse health effects of sugar—obesity and tooth decay—and influencing medical research and public health recommendations.[17][18][19][20]
Organizations
History of the sugar industry
Health effects
Industry funding of research
The sugar industry has funded research that downplayed the health effects of sugar. The Coca-Cola Company provided funding to the Global Energy Balance Network promoting exercise over reduced sugar consumption.[21][22] The Sugar Research Foundation, the predecessor to the Sugar Association, funded research that downplayed the risks of sugar and highlighted the hazards of fat.[23][24]
Subsidies
Summarize
Perspective
United States
 | This article needs to be updated. (November 2023) |
The U.S. Sugar program is the federal commodity support program that maintains a minimum price for sugar, authorized by the 2002 farm bill (P.L. 107–171, Sec. 1401–1403) to cover the 2002-2007 crops of sugar beets and sugarcane.
Originally designed to protect the incomes of the sugar industry-growers of sugarcane and sugar beets, and firms that process each crop into sugar - the program now prevents them from competing with producers of corn syrup sweetener. It supports domestic sugar prices by:
- (1) making available nonrecourse loans to processors (not less than 18¢/lb. for raw cane sugar, or 22.9¢/lb. for refined beet sugar);
- (2) restricting sugar imports using a tariff-rate quota, and
- (3) limiting the amount of sugar that processors can sell domestically (under marketing allotments) when imports are below 1.532 million short tons.
Labor
Working condition
Workers face low pay, debts, heat stress[25] and chemical exposure.[26][27]
Child labor
Child labor has been reported in the sugar industry.[25]
Slavery
Sugar played a significant role in the Atlantic slave trade, driving the demand for labor on plantations in the Americas.
In 2022, U.S. Customs and Border Protection blocked imports of Central Romana sugar citing "information that reasonably indicates the use of forced labor in its operations".[28][29]
Interventionism
Cuba
From August 25, 1917 to February 15, 1922, the United States Marine Corps was stationed in Cuba to protect American sugar interests.
Hawaii
The sugar industry played a role in the overthrow of the Hawaiian Kingdom.
Environmental effects
Water
Sugarcane is a very water intensive crop[30] and irrigating sugarcane can contribute to water scarcity.[31]
Wastewater and solid waste from sugar mills can pollute water.
Sugarcane burning
ProPublica and The Palm Beach Post reported that sugar companies set fire to cane fields in Florida to rid the sugarcane of its outer leaves but the fires also release harmful smoke. Residents are suing sugar companies, alleging that pollution from cane burning damages residents’ health.[32]
See also
References
Further reading
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