Volatile World Sugar Market Underscores Need for Level Playing Field, Fair Trade Rules for American Producers

VAIL, CO – A panel of sugar industry experts detailed the extreme volatility that defines the world sugar market during a session at the International Sweetener Symposium yesterday.

“The world supply of sugar is strong, but the global market environment is not aligned to fairly support all sugar-producing countries. Global sugar competitors like Brazil and India continue to depress the world market value of sugar with their production policies. Market patterns are not stable heading into 2026-27 harvest amid geo-political influences and environmental challenges that are affecting international trade,” said Jeff Dorbrydeny, Senior Vice President and Head of Futures Options at JSB Commodities.

American sugarbeet and sugarcane farmers and workers need strong trade policies to compete against other nations’ persistent use of sugar subsidies and unfair trade practices. Right now, America’s sugar producers and 112 bipartisan members of Congress are urging the U.S. Trade Representative to take immediate action to update the over-quota sugar tariffs to stop a flood of foreign sugar from undercutting American farmers.

Over-quota sugar tariffs have not changed in 26 years and do not reflect any of the inflationary pressures that have affected sugarbeet and sugarcane producers and sugar processors since 2000.

“There is a growing disparity between U.S. foreign trade policy and sugar policy, driving domestic sugar prices below costs of production. This needs to be addressed and corrected urgently to create stability for our domestic market and ensure that U.S. sugar producers are supported while experiencing increased production costs,” said Chris Bergin, Trader at CSC Sugar.

The world price is so depressed by subsidies and dumping that, over the past 25 years, the world average cost of producing sugar has exceeded the world price by nearly 40% on average.

UK-based sugar policy expert Patrick Chatenay pointed to the impact on the European Union (EU).

“The EU sugar industry is dying. It’s being destroyed. Foreign subsidies are increasing global market volatility, and the input costs of production have surpassed what can be feasibly afforded with the revenue these farms and mills are bringing in each year. The world market sugar prices are so low due to these subsides that it makes the industry unviable unless foreign trade policies are changed to reflect the current market realities,” said Chatenay.

Chatenay recently authored a report detailing how the EU has increasingly exposed its domestic industry to the oversupplied and chronically depressed global sugar market by expanding access for duty-free imports, leading to the closure of 21 European beet sugar factories over the past 7 years.

This should serve as a stark warning about the need to bolster U.S. sugar import policies, say officials from America’s sugar industry.

“We need to strengthen our foreign trade policies to level the playing field for an essential agriculture commodity. American sugarbeet and sugarcane farmers and workers want to continue keeping it sweet in America, but we need an updated over-quota sugar tariff to better reflect the market volatility and inflationary pressures facing farmers today,” said Dr. Rob Johansson, Director of Economics & Policy Analysis for the American Sugar Alliance.

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