For years, U.S. sugar producers have noted that sugar prices aren’t a major decider for food manufacturers looking to relocate or expand.
Wages, taxes, labor force, reliable domestic suppliers, customer base, and transportation costs to market are all arguably more important factors.
The American Sugar Alliance has even catalogued U.S. expansion projects by confectioners to make its point that U.S. sugar prices are not a deterrent to growth.
If anything, the high quality and reliability of efficient U.S. sugar producers has helped promote the incredible expansion of the domestic candy industry.
The latest entry in the ASA’s expansion list certainly proves the hypothesis.
Area Development Online noted on April 10 that Mavalério, a Brazilian manufacturer of candy and other confectionary products, is investing $5 million in its first U.S. production operation.
The move will create 55 jobs in Hanover County, Virginia, and will give the company access to key East Coast markets.
U.S. sugar policy opponents have often praised Brazil – which is known as the OPEC of sugarbecause of its stranglehold on the world market – for its cheap sugar.
The fact that a Brazilian candy company, with access to mountains of cheap, subsidized sugar, chose to expand in America instead of at home speaks volumes for all this country has to offer. In other words, it’s not all about the price of sugar.
On behalf of U.S. sugar producers, welcome to America, Mavalério.
We don’t have the same sugar subsidies as Brazil, so we can’t sell you sugar below the cost of production. But, we can promise you sugar of the highest quality, produced by efficient Americans and delivered on schedule to your door at a fair price.