News & Events - Archived News

[ Up ]

 

Sugar Prices Drop but Candy, Sweetened Products Soar

Contact: Joseph Terrell, American Sugar Alliance
November 01, 2001
 
WASHINGTON - Although national and international events have put a damper on some Halloween activities here in the U.S. this year, record amounts of candy and sweetened products will still be purchased-and at a higher price, even though the price American sugar farmers receive for their product has plummeted.

Jack Roney, the director of economics for the American Sugar Alliance, a person who keeps tabs on the government figures that show these sorts of things, reports that data from USDA and the Bureau of Labor Statistics show that since 1996 the wholesale refined sugar price-which is what the farmers get-has dropped more than 23 percent. At the same time, candy is up 8 percent, cereal is up 6 percent, cookies and other bakery products are up 11-14 percent, and ice cream has soared by more than 21 percent.

"What is really disturbing," Roney said, "is that even the price for sugar on the grocery shelf is up, by 5.8 percent. Grocers don't add value to the sugar they buy in bags. They just put it on the shelf. They're buying the sugar from farmers for nearly a fourth less, and selling it to consumers for 6 percent more."

Roney noted, however, that the consumer price for sugar in America is still 20 percent below the average of what consumers in other developed countries pay.

"The scary part of all of this is that these same big commercial sweetener users who are raising their prices to consumers are the ones who are attacking U.S. sugar policy, trying to drive even lower the prices efficient American sugar farmers receive for their hard work," Roney said.

"Their actions are truly a 'trick' on American consumers and farmers because none of these lower prices the grocers and manufacturers pay for sugar are passed on to consumers as a 'treat,'" Roney said.