Loading AI tools
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.
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.
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]
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]
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]
Seamless Wikipedia browsing. On steroids.
Every time you click a link to Wikipedia, Wiktionary or Wikiquote in your browser's search results, it will show the modern Wikiwand interface.
Wikiwand extension is a five stars, simple, with minimum permission required to keep your browsing private, safe and transparent.
