US confectionery industry chiefs have accused a US sugar lobby group of crying wolf with its claims Brazil’s annual US$2.5m sugar subsidies depress world prices by up to 30%.
A recent American Sugar Alliance report slammed Brazilian government programmes saying they give Brazil sugar exporters an unfair advantage.
Go deeper with GlobalData
However, the US’s National Confectioners Association (NCA) told just-food that not only do US sugar growers receive US$3.5bn per year in subsidies, US legislation guarantees a minimum price for sugar, forcing consumers and businesses to pay almost double the world price. The NCA wants the US Congress to liberalise the system during an ongoing review.
A spokesperson said: “Over the past four years….resulting record-high refined sugar prices have imposed a US$14bn hidden food tax on American consumers and businesses in order to provide a special interest subsidy to sugar producers.
“Now, it’s possible that the federal government, and ultimately taxpayers, may have to buy excess sugar from domestic producers at a cost upwards of USD80 million because of low raw sugar prices,” she added.
Brazil’s sugar industry supplies about half the international market.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
