Dive Brief:
- The USDA Commodity Credit Corp. changed marketing allocations for 19,510 tons of surplus cane sugar and 31,896 tons of surplus beet sugar in domestic processors for fiscal 2015.
- Surplus allocation of two cane processors, Florida Crystals and Growers Co-op. of Florida, was transferred to U.S. Sugar Corp., which needed more allocation to market a crop that was bigger than anticipated. Reassigned cane sugar allocations were 17,376 tons and 2,134 tons, respectively.
- Surplus allocation of six beet sugar processors was transferred to Michigan Sugar Co., which had a record high crop requiring a larger allocation to market. Reassigned allocations were 2,770 tons from Amalgamated Sugar Co., 11,701 tons from American Crystal Sugar Co., 4,025 tons from Minn-Dak Farmers Co-op., 5,319 tons from Southern Minn Beet Sugar Co-op., 7,555 tons from Western Sugar Co., and 527 tons from Wyoming Sugar Growers, LLC .
Dive Insight:
The reallocations are part of the U.S. sugar program that employs price supports, domestic marketing allotments, and tariff-rate quotas to affect the quantity of available sugar in the U.S. market. The USDA Commodity Credit Corp. ensures loans are possible for processors of domestically grown sugarcane and to domestic processors of sugar beets. The marketing allotments help make sure the sugar loan program runs without costing the federal government money.