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Stock Up as U.S. Faces Possible Sugar Shortage

  • Susan
  • August 14, 2009
Macro photograph of a pile of sugar (saccharose)
Could be the new white gold

If you need a daily dose of sugar to keep up your energy, you may want to run to your favorite store to stock up on your supply of sweets.  Several giant food producers are warning the Obama administration that the U.S. could be facing a severe sugar shortage unless they are allowed to import more tariff-free sugar.

According to the Wall Street Journal, major food producers informed Agriculture Secretary Tom Vilsack of dire consequences if import quotas for sugar are not lifted.  General Mills, Hershey, Mars and Kraft Foods all warn that their inability to acquire sugar will affect the production of chocolate products, candy bars, breakfast cereals, cookies, chewing gum and thousands of other products that are staples in American pantries.

Currently, the U.S. has restrictions on the amount of sugar that can be imported without tariffs.  Mexico is the only country from which the U.S. allows unlimited imports.  Other major sugar-producing countries such as Brazil are limited in what they can ship to the United States.

The food producers also cautioned that without intervention by the Obama administration, they would most likely have to increase product prices significantly and lay off workers.  It is unclear if the government has any plans to make changes in its tariff policies.

Sugar is in short supply because the world consumes more than what is produced and a larger percentage of sugar cane crops are being converted into alternative fuels.

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