BACKING AMERICA’S BEET
AND CANE PRODUCERS
Sugar Farming States
Sugarbeet Factory
Cane Refinery Location
Cane Mill Location
Sugar Distribution Centers
142,000 jobs in 22 states and
contributes $20 billion to the economy a year
> Sugar generates
> U.S. sugar policy is designed to cost taxpayers
$0
> Consumers in foreign countries pay, on average,
20% more
for sugar than grocery shoppers in the United States
> Foreign subsidies make sugar the
commodity market
world’s most distorted
FOREIGN SUGAR SUBSIDIES
PREVENT A FREE MARKET
America has a sugar policy because, for decades, foreign subsidies and predatory trade practices have
made sugar the world’s most distorted commodity market. And now, those subsidies are on the rise.
To achieve a free market, multilateral global reform — not unilateral disarmament of U.S. sugar policy —
is needed. All countries must be at the table, and all subsidies must be on the table.
That’s the philosophy behind the “Zero-for-Zero” sugar policy, where America will roll back its sugar
policy if foreign competitors will end their subsidies.
World’s Largest Sugar Exporters: A History of Subsidies*
Share of Exports in the World Sugar Market
2011/12–2015/16 Average
DID YOU KNOW?
Brazil
Thailand
> $2.5 billion to $3 billion/yr in
direct and indirect subsidies
> Government-set prices
> Credit and input subsidies
Brazil is the OPEC
> Sugar benefits from cane ethanol
subsidies
> Indirect export subsidies
of sugar, controlling
nearly
> Credit subsidies
> Debt forgiveness
Australia
> Direct grower payments
> Export sales below
domestic price levels
of
Saudi Arabia of the
real OPEC controls
just
19% of crude
oil exports.
Thailand
14%
India
%
a6
ali
str
Au
Brazil
47%
50%
global exports.
> Government-set prices
> Export subsidies
> Transportation and input subsidies
India 4%
EU 3%
Mex
ico
3%
European Union
> Decades of high price supports
> Export subsidies
> High import tariffs
Other 68 Countries
23%
> Grower subsidies
Mexico
> Government ownership of mills
> Credit subsidies
> Debt forgiveness
*Does not include currency devaluations or
low labor and environmental standards.
> Income subsidies
SUGAR’S SHARE OF CANDY
COSTS CONTINUES TO CRUMBLE
The cost of a candy bar is at an all-time high of $1.49. That’s up 300% since the 1980s, when candy bars
averaged just 35 cents. And it’s not just candy bars. The price of hard candy, cookies, cake, ice cream
and other sweet treats are way up, too.
Meanwhile, sugar costs about the same today as it did three decades ago and is actually 42% cheaper
when corrected for inflation.
Candy Bar Prices Climb, Sugar Stays Flat
Today, the cost of
sugar is only 1%
of a candy bar’s cost.
1.50
DID YOU KNOW?
1.25
A candy bar contained
less than two pennies
1
Price ($)
worth of sugar in
Brazil
46%
the 1980s, which
represented just
.75
4%
of the product’s final
price. Sugar still makes
up less than two cents,
.50
In the ‘80s the cost
of sugar was 4% of
a candy bar’s cost.
or a mere
candy bar’s cost today.
.25
0
1980s
1% of a
2016
SUGAR POLICY:
A NO-COST SUCCESS STORY
Sugar policy is based on loans repaid with interest, not subsidy checks. That’s why it cost taxpayers $0
in ‘03, ‘04, ‘05, ‘06, ‘07, ‘08, ‘09, ‘10, ‘11, ‘12, ‘14, ’15, and ‘16. And the Congressional Budget Office and U.S.
Department of Agriculture both estimate sugar policy will cost $0 over the life of the current Farm Bill.
The only blemish on sugar’s no-cost record came in 2013 when the USDA took action to keep the market
from collapsing after Mexico violated U.S. trade law and dumped subsidized sugar.
Mexico’s actions cost U.S. taxpayers $259 million — which still represented less than 0.25% of Farm Bill
spending that year — but resulted in more than $1 billion in damage to U.S. sugar producers. After U.S.
producers challenged these actions, the U.S. government ruled against Mexico and removed the threat,
so sugar policy’s no-cost operation could continue.
U.S. Sugar Policy Cost
300
259
250
DIRECTLY FROM THE FARM BILL
Mexico Violates
U.S. Trade Law
[T]o the maximum extent
practicable, the Secretary shall
operate the program established
under this section at no cost to
the Federal Government….
150
100
19
20
17
CBO: 2016/17–2018/2019, March 2016 projections
0
18
16
Source: USDA, 2002/03–2015/16 (2012/13 is a net cost)
0
20
0
20
0
20
14
0
20
0
20
12
13
0
20
11
0
20
10
0
20
0
20
09
0
20
08
0
20
07
0
20
05
0
06
0
20
04
0
20
03
0
20
0
15
50
20
Millions of Dollars
200
U.S. CONSUMERS GET A
GREAT DEAL ON SUGAR
Grocery shoppers in other countries pay, on average, 20% more for sugar than Americans at the
checkout line. And U.S. food manufacturers pay about the same for sugar as their counterparts abroad,
and sometimes considerably less, according to the International Sugar Organization.
Of course, sugar policy critics would never admit these simple facts as they intentionally mislead
lawmakers and journalists about sugar prices.
To make U.S. prices sound high, critics cite prices from a highly-volatile market of subsidized sugar
surpluses. This market represents just 25% of the world’s sugar supply, it is disconnected from actual
production costs, and it doesn’t include the refining, shipping, or storage costs.
Retail Sugar Prices Around the Globe
DID YOU KNOW?
$1.40
U.S. prices were
$1.20
lower in 2016
than in 1980,
back when Jimmy
American sugar consumers benefit
from U.S. sugar policy: Lower retail
prices than most of the world.
$0.80
$0.60
$0.40
$0.20
ss
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ail
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ali
a
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um
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un
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try
en
Av
Un
e
i te
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ng
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ob
do
al
m
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er
ag
e
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ly
Sp
ain
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rtu
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l
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lan
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rm
k
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an
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ar
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nm
De
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De
ve
lo
ng
Ko
n
g,
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ina
$0.00
Ho
U.S. Dollars per Pound
$1.00
Source: SIS International Research, “Global Retail Sugar Prices,” July 2015, from Euromonitor,
International Monetary Fund; 2014 prices. Surveyed countries represent 67% of global sugar
consumption. Developed countries include OECD member countries and Hong Kong.
Carter sat in the
Oval Office.
BIG CANDY IS ENJOYING
SWEET SUCCESS
Confectioners have nothing to complain about when it comes to sugar. They pay about the same for
sugar as their counterparts abroad, and sometimes considerably less, according to the International
Sugar Organization. And, they have boosted profits under the current sugar policy.
U.S. sugar prices are as low today as three decades ago, yet the price of a candy bar has increased
300% over that time. No wonder U.S. confectioners boast profit margins that are higher than hospitals,
aerospace/defense contractors, telecom providers, and even Hollywood, based on Yahoo!Finance
statistics.
And according to official Census data, domestic candy production and associated jobs have grown
since current sugar policy took hold in 2008 — far outpacing manufacturers of non-sweetened foods.
A recent study by the dean of the University of Maryland’s business school found that, over the last
15 years, the biggest producers of sugar-sweetened foods:
>
Saw stock prices jump 136% — nearly triple the growth of the
S&P Index.
>
Grew revenues by 131% — double the growth of the U.S. economy.
>
Achieved profit margins 37% higher than other U.S. public
companies.
>
Realized returns on equity 25% higher than other food
manufacturers.
Be sure to check out all the good news
Big Candy refuses to share with Congress at
sugaralliance.org/big-candy
AMERICA’S SUGAR PRODUCERS:
BY THE NUMBERS
U.S. Production
142,000 Number of American sugar jobs in 22 states in jeopardy of being outsourced
without sugar policy.
$20 billion Annual economic activity generated by U.S. sugar production.
2 million Acres of sugarbeets and sugarcane planted in America in 2016/17.
50/50 About 50% of America’s sugar comes from cane, the other half from beets.
100% Percentage of beet processing factories that are farmer-owned — 90% of
U.S. cane refining capacity is owned by farmers or employees.
U.S. Sugar Policy and Trade
$0 What U.S. sugar policy cost American taxpayers in ‘03, ‘04, ‘05, ‘06, ‘07, ‘08,
‘09, ‘10, ‘11, ‘12, ‘14, ‘15, and ‘16. CBO and USDA also estimates no cost for the
rest of the Farm Bill. A small cost in 2013 was a direct result of a flood of
subsidized Mexican sugar.
5 All of the five recorded votes taken during the last Farm Bill debate rejected
attempts by Big Candy to weaken sugar policy.
120 Number of countries that produce sugar and subsidize sugar production in
some way.
47% Amount of global sugar exports controlled by Brazil, which built its dominance
over the volatile global sugar market with $2.5 billion a year in subsidies.
41 America is among the largest sugar importers in the world, granting market
access to 41 countries.
1.4 million Tons of sugar America is forced to provide import access for, regardless of
needs — imports from Mexico have been unlimited because of NAFTA.
1st Rank of America’s beet farmers — the lowest cost of beet sugar producers in
the world — overall, U.S. beet and cane sugar producers are 20th lowest cost
of the 95 sugar-producing countries examined in a study of world efficiency.