Milling & Baking News - August 14, 2018 - 20

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as just two of many companies seeking to reduce sugar.
"It's a horrible trend for sugar," Mr. Jenkins said.
He indicated that, through July, Mexico was on track to
meet all of its export requirements under the U.S.-Mexico
suspension agreements.
"Mexico has performed pretty flawlessly," Mr. Jenkins said.
Mr. Jenkins said U.S. beet sugar sellers "did a fantastic job"
of buying back market share from cane refiners when the refined cane premium moved to historic levels over beet sugar
in 2016 because of concerns about G.M.O. labeling.
If beet sugar sellers want to increase market share, they do
it through lower prices, he said. MBN

Mars executive sees pluses
in current sugar program

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20 / August 14, 2018

TRAVERSE CITY, MICH. - While sugar users and producers
typically are on opposite sides of the debate when it comes to
U.S. sugar policy, common ground between the two groups was
noted at the International Sweetener Symposium, sponsored by
the American Sugar Alliance, which represents sugar beet and
cane growers, processors and refiners.
"The current system is better for everyone," Paul Steed, senior global price risk lead for sugar, Mars Wrigley Confectionery, said on Aug. 6. "We're not that concerned about prices;
we're more concerned about availability."
He noted that Mars' just-in-time delivery meant that there
was not a lot of storage capacity at its plants, adding that the
suspension agreements between the United States and Mexico
have stabilized prices at a higher level. He noted
that severe volatility a few years back "didn't
serve anyone well."
But Mr. Steed identified shortcomings of the current U.S. sugar program, which sugar users have
unsuccessfully sought to change in the past several
farm bills: the current program's marketing allotments discourage domestic expansion; tariff-rate Steed
quota restrictions risk timing mismatches between
market needs and cane refining capacity; and sugar containing
product imports of more than 1 million tons are not made with
U.S. labor or U.S. sugar. He also noted that the current T.R.Q. system was based on shipping patterns from 40 years ago.
"Every pound of sugar sold in the United States is under
some form of quota," Mr. Steed said.
But Mars' former focus on price has shifted to food safety and
sustainability, Mr. Steed said, which was consumer driven.
"It's time to embrace a sense of urgency in sustainability," he said.
Jack Roney, director of economics and policy analysis for the
American Sugar Alliance, said at the symposium that he appreciated sugar users' willingness to pay a premium for a sustainable sugar supply, made possible by the U.S. sugar program. He
noted the U.S. sugar industry's high standards and the benefits
of a dependable, safe, responsible and sustainable supply of
sugar, adding that the sugar industry served as the stock holder
for users' just-in-time delivery. He added that consumers demand to know how products are made and are willing to pay
more for ethical production practices.
Mr. Steed noted it was the first time in his career that there has
been debate about sugar demand. At the same time, he said it
was "incredibly difficult to recipe away from sugar," noting the
unique properties that sugar brings to products, and that "a lot
of substitutes aren't healthier anyway."
"We feel very good about the growth opportunities in our market," Mr. Steed said. "We're very skeptical that demand is down." MBN
bakingbusiness.com / world-grain.com

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Milling & Baking News - August 14, 2018

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