96 



SUGAR - WHO LET THIS 

 OUT OF THE BAG? 



American Sugar Producers Soon 

 to be Relics of the Past 



Information supplied by the United States Beet 

 Sugar Association, The American Sugarbeet 

 Growers Association, the USDA/ASCS 

 Sweetener Analysis Division and others, 

 indicates that those involved in all areas of U.S. 

 sugar production are about to suffer the same 

 impacts as northern U.S. wheat and feed grain 

 producers. 



Sugar production and consumption in Canada 

 have not shown any major change in the period 

 1989-90 to the present, but Canada's level of 

 sugar imports from other countries and its level 

 of exports to the U.S. of products that are 60 to 

 99 percent sugar have risen substantially. 

 Products with less than 60 percent sugar have 

 undoubtedly risen, as well. 



The Facts: 



• According to the U.S. Sugarbeet Growers 

 Association, Canada only produces about 9 

 percent of its domestic sugar needs. Imports meet 

 the remaining needs. 



• In 1989-90, Canadian sugar production 

 was 121,000 metric tons. In 1992-93, production 

 totaled 140,000 metric tons, which seems to be a 

 record high. 



• Canadian sugar imports doubled during 

 the last four years. Domestic consumption, while 

 growing, accounted for only a small part of the 

 increase in imports. Beginning/ending stocks have 

 also remained relatively stable throughout this 

 period 



Canadian 1989-90 imports which were 524,000 

 metric tons, have increased to the current 

 annual rate of 1.065 million metric tons. Since 

 Canada's total sugar exports hovered between 

 29,000 and 40,000 metric tons during the same 

 period, part of the rise in its imports can be 

 explained by two factors: 1) an increase in 

 Canadian population from about 26.5 million 

 people in 1989 to 27.4 million people in 1993; 

 and 2) an increase in the consumption of sugar 

 from 29.9 kilograms to 40.2 kilograms per 

 person during the same time period. 



The remainder of Canadian sugar supply is 

 largely exported to the U.S., mainly in the form 

 of "select sugar-containing products." To make a 

 long story short, Canada's exports to the U.S. of 

 products which are 60 percent to 99 percent 

 sugar have increased from 3,796 metric tons in 

 1989, to a current level of 118,456 metric tons. 

 In other words, in 1992, Canada shipped the 

 equivalent of nearly 90 percent of all the sugar 

 it produced domestically to the U.S. in the form 

 of flavored sugar, iced tea mixes, gelatins and 

 other items! 



At the same time, shipments of similar items to 

 the U.S. from other countries saw a 

 corresponding decline in three of the four 

 sugar-containing categories. In 1992, Canada 

 accounted for all but 6,554 metric tons of 

 sugar-containing products which entered the U.S. 



Canadian Processed Foods Imports Explode 

 Following FrM Trade Agreement 



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