- The American sugar market is losing importance due to declining consumption and new health trends.
- Washington is defending local producers by maintaining strict import controls.
- Farmers are struggling with rising costs and the effects of customs policies that have increased the prices of machinery and means of production.
- Changes in the US are beginning to influence the direction of global sugar trade.
New market realities
In the US, the sugar sector is facing a marked decline in demand. The growing popularity of weight-loss drugs and greater public health awareness are reducing the consumption of sweet products. Producers are responding to this trend by increasingly looking for cheaper and healthier substitutes for sugar beet.
Despite this, sugar still remains one of the most protected agricultural commodities in the US. The government maintains control over imports, adjusting the level of imports according to domestic supply and projected demand. The priority is to protect domestic producers from the influx of cheap raw material from abroad and to ensure a stable supply for the food industry.
Difficult times for farmers
Declining demand combined with high production costs is putting an increasingly heavy burden on US farmers. The effects of the Donald Trump administration’s tariff war continue to take their toll on the price of imported tools, machinery or crop protection products. As a result, some farms are reducing acreage or moving away from sugar beet cultivation altogether.
Although the US remains one of the largest consumers of sugar in the world, its domestic production may soon fail to keep up with market changes. Less activity from domestic processors is opening up space for supply from South America and Asia, shifting the global trade balance. Perhaps it is social change that will become the main factor shaping the global sugar market in the coming years, knocking climate conditions off their pedestal.
