08-14-2009, 11:15 PM
Leading US food groups such as Hershey, Mars, and Krispy Kreme Doughnuts have warned the Obama administration that the country could "run out of sugar" and jobs could be lost unless curbs on imports are relaxed.
Published: 4:35PM BST 13 Aug 2009
Leading US food groups such as Hershey, Mars, and Krispy Kreme Doughnuts have warned the Obama administration that the country could
US food groups claim shortages could lead to higher prices for consumers.
The food producers, which also include Kraft and General Mills, gave the warning in a letter to the Obama administration. They claim that unless import quotas are increased there could be a severe shortage of sugar used in chocolate bars, breakfast cereal, cookies, chewing gum and thousands of other products.
US sugar prices are trading near 30-year highs on growing concerns about global supplies.
India, the world's second-largest sugar exporter, has seen falling output after lower-than-expected rainfall during the monsoon season. While production in Brazil, another key producer, has been hit by too much rain.
As a result, sugar supplies are tight and getting tighter as Asia ratchets up demand ahead of the annual festival season.
US refineries have been operating at record rates to keep the market supplied but sugar inventories in the country are now at a 34-year low.
Shortages could mean consumers will have to pay more for their products and jobs will be at risk, the food producers said in a letter to Tom Vilsack, the US Secretary of Agriculture.
The letter was written under the umbrella of The Sugar Policy Alliance.
http://www.telegraph.co.uk/finance/newsb...rtage.html
Published: 4:35PM BST 13 Aug 2009
Leading US food groups such as Hershey, Mars, and Krispy Kreme Doughnuts have warned the Obama administration that the country could
US food groups claim shortages could lead to higher prices for consumers.
The food producers, which also include Kraft and General Mills, gave the warning in a letter to the Obama administration. They claim that unless import quotas are increased there could be a severe shortage of sugar used in chocolate bars, breakfast cereal, cookies, chewing gum and thousands of other products.
US sugar prices are trading near 30-year highs on growing concerns about global supplies.
India, the world's second-largest sugar exporter, has seen falling output after lower-than-expected rainfall during the monsoon season. While production in Brazil, another key producer, has been hit by too much rain.
As a result, sugar supplies are tight and getting tighter as Asia ratchets up demand ahead of the annual festival season.
US refineries have been operating at record rates to keep the market supplied but sugar inventories in the country are now at a 34-year low.
Shortages could mean consumers will have to pay more for their products and jobs will be at risk, the food producers said in a letter to Tom Vilsack, the US Secretary of Agriculture.
The letter was written under the umbrella of The Sugar Policy Alliance.
http://www.telegraph.co.uk/finance/newsb...rtage.html
