The federal limits on the supply of imported sugar in the U.S. market are boosting prices for bakeries, candy makers and other small businesses, according to the president of the Sweetener Users Association, a beltway lobby group.
The U.S. is currently the world’s fifth largest sugar producer and the second largest net importer. The limits, are set by the Farm Bill, which seek to protect U.S. sugar producers by reducing lower-cost imports from 40 sugar-producing countries. As a result there is a significantly tighter sugar supply. U.S. domestic sugar prices tend to be several cents higher per pound than world prices, raising costs for businesses that make bulk purchases.
But, American candy makers have been largely unscathed by the recession, with production growing 8.6% between 2004 and 2010, including a 2.5% increase in the past three years, according to the U.S. Census data show.
This is going to make my baker clients so happy.