Sugar industry explained

The sugar industry subsumes the production, processing and marketing of sugars (mostly sucrose and fructose). Globally, most sugar is extracted from sugar cane (~80% predominantly in the tropics) and sugar beet (~ 20%, mostly in temperate climate, like in the U.S. 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.

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.

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]

RankCompany 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. 1.8 Netherlands
8. Wilmar International Ltd. 1.5 Singapore
9. Thai Roong Ruang Sugar Group 1.5 Thailand
10. Turkiye Seker Fabrikalari1.34 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

See main article: Sugar 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

See main article: History of sugar.

See also

Further reading

Notes and References

  1. Web site: Resolution In US House Against Subsidies On Sugar By Countries Including India . 2023-11-25 . NDTV.com.
  2. Web site: Sugar: World Markets and Trade . Foreign Agricultural Service, US Department of Agriculture . 24 March 2019 . 20 November 2018.
  3. Web site: Phillips. Judson. 16 March 2018. Sugar, steel subsidies are anything but sweet. 2021-05-06. The Washington Times.
  4. Web site: Sugar and sweeteners: Policy. US Department of Agriculture. 20 August 2019. 22 November 2019.
  5. Web site: Romano. Robert. 2017-01-17. Yoho Zero for Zero sugar policy is a trade win-win for everyone Congressman Ted Yoho. dead. https://web.archive.org/web/20170119072102/https://yoho.house.gov/media-center/in-the-news/yoho-zero-for-zero-sugar-policy-is-a-trade-win-win-for-everyone. 2017-01-19. 2021-05-06. yoho.house.gov.
  6. Web site: Edwards. Chris. 2007-06-20. Why Congress Should Repeal Sugar Subsidy | Cato Institute. 2021-05-06. Cato.org.
  7. Web site: Business | Q&A: Sugar subsidies . BBC News . 2005-09-19 . 2021-05-06.
  8. Web site: October 2016. Food, Farming, Fisheries | European Commission. dead. https://web.archive.org/web/20170125080727/https://ec.europa.eu/agriculture/sites/agriculture/files/sugar/doc/sugar-faq_en.pdf. 2017-01-25. 2021-05-06. ec.europa.eu.
  9. Web site: March 2004. Dumping on the world - How EU sugar policies hurt poor countries. dead. https://web.archive.org/web/20180507053743/https://www.oxfam.org/sites/www.oxfam.org/files/bp61_sugar_dumping_0.pdf. 2018-05-07. 2018-08-19. oxfam.org.
  10. Web site: 6 August 2004. Brazil Claims Victory After WTO Ruling on EU Sugar Subsidies. dead. https://web.archive.org/web/20180820005726/https://www.ictsd.org/bridges-news/biores/news/brazil-claims-victory-after-wto-ruling-on-eu-sugar-subsidies. 2018-08-20. 2018-08-19. ictsd.org.
  11. Web site: Sugar | European Commission . Ec.europa.eu . 2021-05-06.
  12. Book: Burrell. Alison. Himics. Mihaly. Van Doorslaer. Benjamin. Ciaian. Pavel. Shrestha. Shailesh. 2014. EU sugar policy : a sweet transition after 2015. 2021-05-06. publications.jrc.ec.europa.eu. Publications Office of the European Union. 10.2791/68116. 978-92-79-35567-7. 1831-9424.
  13. Web site: Viljoen. Willemien. 8 May 2014. The end of the EU sugar quota and the implication for African producers. 2021-05-06. tralac.org.
  14. Web site: Roberts. Dan. 27 March 2017. Sweet Brexit: what sugar tells us about Britain's future outside the EU. 2021-05-06. The Guardian.
  15. Web site: Chanjaroen. Chanyaporn. November 4, 2011. Suedzucker Leads the Top 10 Sugar-Producing Companies. 2021-05-06. Bloomberg.
  16. Web site: 31 March 2021. Global Sugar Manufacturing: Market Research Report. 2021-05-06. IBISWorld.
  17. Sifferlin. Alexandra. Soda Companies Fund 96 Health Groups In the U.S.. Time. 2018-03-24. 10 October 2016.
  18. 10.1001/jama.2017.3456. 28464165. 0098-7484. 317. 17. 1755–1756. Mozaffarian. Dariush. Conflict of Interest and the Role of the Food Industry in Nutrition Research. JAMA. 2 May 2017.
  19. 10.7326/L16-0534. 27802504. 0003-4819. 165. 12. 895–897. Schillinger. Dean. Tran. Jessica. Mangurian. Christina. Kearns. Cristin. Do Sugar-Sweetened Beverages Cause Obesity and Diabetes? Industry and the Manufacture of Scientific Controversy. Annals of Internal Medicine. 2018-03-21. 20 December 2016. 7883900. (original url, paywalled: Author's conflict of interest disclosure forms)
  20. News: 0362-4331. O’Connor. Anahad. Studies Linked to Soda Industry Mask Health Risks. The New York Times. 2018-03-23. 31 October 2016.