Milling & Baking News - December 27, 2022 - 17

Sweetener Users Association
seeks additional sugar supplies
WASHINGTON - The Sweetener Users
Association (SUA) said Dec. 14 that it had
requested the Office of the US Trade Representative
to immediately reallocate the
raw sugar tariff-rate quota (TRQ) and the
US Department of Agriculture to significantly
increase the TRQ for refined sugar
to help US food and beverage manufacturers
meet demand at a time of historically
tight sugar supplies.
" While SUA members support
expanded sugar production and manufacturing
and refining capacity in the United
States in the long term, USTR and USDA
can act now under existing laws and regulations
to ease the acute supply crisis, "
said Rick Pasco, president of the SUA.
The SUA cited converging issues
causing supply constrictions this year,
including two separate force majeure
declarations by US beet sugar sellers and
significant supply disruptions to raw cane
sugar imports from the Philippines and
the Dominican Republic. Consequently,
prices remain at historically high levels
and multiple sellers of sugar have withdrawn
from the market, telling customers
they have no uncommitted sugar to sell.
The SUA also noted the USDA has the
authority to impose conditions sufficient
to ensure that a refined import quota is
open only to sugar that is immediately
usable by manufacturers without the
need for further processing.
Bulk refined sugar prices reported
by Milling & Baking News were 59¢ a
lb f.o.b. for Midwest beet sugar, up 51%
from a year earlier, although the price
was nominal as beet processors were
withdrawn from the market for the
remainder of 2022-23 (October-September).
One national cane refiner offered
refined cane sugar from all locations at
68¢ a lb f.o.b. through Dec. 31 (up 24% from
a year ago) and at 61¢ a lb for calendar
2023. Most other cane refiners are sold
out or very well sold for the marketing
year. Spot sugar in most areas was hard
to find except from distributors at much
higher prices than from beet processors
SOURCE * BLEND * INNOVATE
bakingbusiness.com
B.C. Williams Bakery Service | BCW Food Products | 800.527.4104
and cane refiners. The Michigan Sugar
Co. declared force majeure earlier in the
year after lower-than-expected sugar
production from its 2021 sugar beet crop.
That action was lifted when 2022 crop
beet sugar became available this fall. The
Republic due to accusations of forced
labor at the company's facilities, which
the company denied. The Philippines
earlier said it would not export any of its
2022-23 raw sugar TRQ allocation as it
was needed to meet domestic needs after
adverse weather reduced production. Of
the 1,117,195-tonne total TRQ allocation
for 2022-23, the Dominican Republic is
the largest holder with 189,343 tonnes,
and the Philippines is the second largest
holder with 145,235 tonnes.
Further, there are concerns about 202223
sugar production and exports from
Mexico, the largest sugar exporter to the
United States, due to adverse weather.
" We strongly urge USDA to use its
Western Sugar Cooperative declared
force majeure this fall after a disappointing
2022 beet crop.
US Customs and Border Protection said
Nov. 23 it was detaining imports of raw
sugar and sugar-based products from
Central Romano Corp. in the Dominican
existing authority to meet market needs, "
Mr. Pasco said. " Timely action will prevent
manufacturing slowdowns resulting
from inadequate supplies, mitigate food
price inflation and discourage further offshoring
of sugar refining. Acting together,
USTR and USDA can help sugar-using
companies deliver the products Americans
love. " MBN
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Milling & Baking News - December 27, 2022

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