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STEAMBOAT SPRINGS, Colo., Aug. 8 /PRNewswire/ -- Despite some
major obstacles, American sugar producers remain among the world's
most efficient, according to a global survey by the renowned
commodities research firm, LMC International, based in Oxford,
England. LMC analyst Martin Todd revealed the preliminary results of
LMC's triennial study at the American Sugar Alliance's International
Sweetener Symposium, being held here through tomorrow.
For the most recent 5-year period studied, 1994/95-98/99, U.S.
corn sweetener producers were the lowest cost of 19 producing
countries, U.S. beet sugar producers were second lowest cost of 40
countries, and U.S. cane sugar producers were 31st lowest cost among
63. For beet and cane sugar combined, the U.S. is in the top third,
ranked 32nd lowest cost of 102 countries studied. ``Adding in the
very cost competitive corn sweetener industry lifts the combined
U.S. sweetener sector to 20th place out of 120 countries,'' Todd
said.
Todd said U.S. corn sweetener producers have long been the
world's lowest cost by far, and that American sugar producers have
managed to improve their ranking, in each of four 5-year periods LMC
has studied since it began these studies in 1979. Todd said more
than half the world's sugar is produced at a higher cost than in the
United States. With corn sweetener included, nearly two-thirds of
world's caloric sweeteners are produced at a higher cost than in the
United States.
Todd said, ``U.S. producers ranking are all the more impressive
because they faced two major obstacles.'' One is the fact that their
competition is dominated by developing-country cane producers,
``where wages are generally very low and environmental regulations
tend to be far less stringent than in the U.S.'' Two thirds of the
world's sugar is produced in developing countries.
The other obstacle was the strong value of the dollar, which has
soared in value by about two-thirds in the past 20 years against the
currencies of most other cane producing countries. Todd explained
how the strong dollar hurts American producers' relative cost
competitiveness, saying, ``a strong dollar acts to inflate that
value of your costs relative to other countries', irrespective of
whether or not you have managed to lower your own costs.''
Todd said, ``The second half of the 1990's presented the U.S.
sweetener industry with a stern test of its ability to remain
internationally cost competitive. Perhaps the greatest of these has
been the strengthening of the U.S. dollar, which is beyond the
control of domestic producers. Nevertheless, the industry has shown
itself equal to the challenge, maintaining its impressive
international ranking as a sugar and sweetener producer.''
Jack Roney, ASA's director of economics and policy analysis, who
moderated the session, said, ``Once again, results of the LMC study
prove that American sweetener producers are among the most efficient
in the world. This is why U.S. sugar producers would welcome free
trade worldwide, if our farmers can compete one-on-one with other
farmers around the world-but not with foreign governments. Until
this level playing field is achieved, a minimal U.S. sugar policy
must remain in place.''
The American Sugar Alliance is a national coalition of farmers,
processors, and refiners of sugarbeets, sugarcane and corn for
sweetener.
For more information about U.S. sugar policy, visit
www.sugaralliance.org.
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