34 THECUBAREVIEW 



SUGAR REVIEW 



EFFECT OF WAR ON SUGAR PRICES— PRODUCTION OF THE VARIOUS 



COUNTRIES 



Specially Written for The Cuba Review by Willett & Gray, of New York 



Oiu" last sugar review for this majjazine was dated July 9th, 1914. 



At that time centrifugal sugar 96° test was quoted at 23^c. cost and freight and 3.26c. 

 per lb. duty paid. 



At that time Europe had stopped buying sugar from Cuba, and the most to be expected 

 was that in normal conditions 23^c. c & f might later be obtained. 



We gave this opinion, adding that "new developments might come to change the prospect." 



Little did we or anyone suspect what these new developments would be as they have since 

 appeared. 



However, on the first of August the war cloud burst in Austria-Hungary and has since spread 

 until all the principal countries of Europe are engaged in actual warfare. 



Arrayed on one side are Austria-Hungary and Germany, and opposed to these are Servia, 

 Russia, France, Belgium and England in order as they joined the conflict. Cm- markets have 

 to do only with the war effects on sugar. 



The first effect of war was the stopping of all sugar supplies to Great Britain from all the 

 beet growing countries, and the United States and Cuba were the only sources from which 

 supphes could be had. 



The eager demand from the United Kingdom to help prices here came at once and in over- 

 whelming volume by leaps and bounds as to prices. Thus far some 90,000 tons of raws and 

 refined have been bought here and in Cuba since August 1st. As the stock in the United 

 Kingdom on August 1st was about 250,000 tons, these piu-chases have increased these supplies 

 some 90,000/100,000 tons, sufficient for two months' consumption — to Oct. 1st — when the 

 further supphes at that time must be met by the prevailing conditions then. 



If the fighting is over Oct. 1st, the United Kingdom will have less difficulty in securing 

 sugar from beet countries, and prices should decUne, somewhat at least. 



If the war is not over, a further seeking of the United Kingdom for supplies may raise 

 prices higher. It is impossible to forecast the length of the war conflict. 



Continued war and fighting over the beet fields will, in any event, reduce the 8,000,000 

 tons of European beet crop to a very serious extent. 



By knowing where the beets are produced and watching the armies marching to and fro 

 on them, some idea of the extent of the war damage to the beet fields may be estimated. 



France produces 800,000 tons sugar-, aknost all of which is grown in the provinces lying 

 between the Belgium frontier and Pai-is. Little is produced on the Franco-German border. 



Belgium produces about one-quarter of its crop of 230,000 tons right in the Liege district 

 where war is going on. 



Holland produces haK of its crop of 230,000 tons near the Belgium border. 



Germany produces 2,738,000 tons. Alsace-Loraine and Baden provinces produce httle 

 sugar, but Rheinland, bordering on Belgium, produces 8,6000 tons, and four districts of 

 Prussia, bordering on Russia, are large producers ; about one-third of the German crop border- 

 ing on Russia. Other districts of Germany producing large quantities are Pomerania, Meck- 

 lenbm-g on the Baltic Sea and the Province of Saxony, Hanover, Brunswick and Anhalt, 

 in the center of Germany. 



Russia produces 1,750,000 tons, of which Poland makes one-tenth and Podoha and Volhynie, 

 on the Austrian border, one-fourth, and Kief, adjoining Podolia, one-fourth. 



Austria produces 1,710,000 tons, but httle is grown near the Russian border. Gahcia, 

 Bukowina and Hungary are small gi-owers. Bohemia and other western sections bordering 

 on Germany have 195 factories producing a large amount. 



As regards the United States' position and prospects growing out of the war we have, of 

 course, had to follow, as to prices from day to day, the pace set by the United Kingdom buyers. 

 This pace has been exceedingly rapid and in two instances a rise of %c. per lb. has come over 

 night. Several minor advances of Mc. per lb. have been made, altogether raising 96 centri- 

 fugals from 3.26c. on July 29th to 6.52c. per lb. duty paid per lb. today, an advance of 3.26c. 

 per lb., or 1007o, in 15 days — a most extraordinary and unprecedented event in sugar history 

 as far as we know. 



This result could not have occurred except that Great Britain was excited and jumped in 

 without reasoning. She has two months' supply now and should be quiet. 



A careful estimate of supphes and requirements of the United States to end of year shows 

 that if Great Britain will leave us alone there is sufficient free duty sugar to meet all demands, 

 provided the greater portion of the domestic cane and beet crops are delivered to the country 

 as fast as made, so that as a matter of fact there is apparently small reason for any further 



