Description
Frank Jenkins, Jenkins Sugar Group, Inc. Presented at the 2012 conference
There are two major factors that determine the price of sugar in the United States. They are the behavior of the U.S. Department of Agriculture and that of the Mexican sugar industry.The USDA sets the parameters for the market each year, controlling the amount of raw sugar imported into the country by the 39 countries that are allowed to export to the United States under the raw sugar tariff-rate quota, as well as controlling the amount of domestic sugar that can be marketed through administration of the marketing allotment system. The department is charged with providing an adequate supply of sugar to the market at a reasonable price while preventing any cost to the taxpayer due to loan forfeitures.
