Sugar shortages have been on the rise globally during 2023. Raw sugar cane prices increased more then 42 cents per pound in May. Midwestern beet sugar prices also went up 62 cents in May.
Carbonated drink prices are up 9.1%. Global sugar prices have surged 42% since June 2022. Candy and gum have went up 13.2% in the last few years.
Why is this happening?
The United States has an agricultural policy requires that 85% of sugar comes from domestic producers. Sugar farmers aren’t able to meet the demands of companies. The National Sugar Confectioners Association are trying to reform the program. However, this brings other problems.
Sugar farmers and processors depend on this policy to stay in business. Without the program, businesses will turn to sugar producers out of the country. Another problem the sugar shortages have created.
Sugar shortages happening globally
Malaysia, Britain, India, Brazil, and Thailand are all countries whose sugar supply is in danger. Floods and prolonged droughts have ruined sugar crops worldwide. These events are partially due to the weather phenomenon known as El Nino.
The El Nino event normally impacts 5-10 million tonnes of production. Experts were concerned previously on the impact the storm would have on a global level. Candy producers are confirming their concerns were valid.
The intensity of the dry season that El Nino is set to influence this year could result in a 10-15% reduction in sugarcane yield globally. Your sweet tooth may have to pay a pretty penny to be satisfied.
Nidhi Jain, business intelligence specialist
Candy manufacture’s reaction
Eric Atkinson president of Atkinson Candy said 11 of his usual suppliers were unable to supply sugar. He reports that he almost purchased sugar from Costco. Hershey and Mondelez are candy companies that have acknowledged the rising price of sugar.
Although losing a portion of our Halloween candy is disappointing, this issue brings major concerns to the sugar producers. There is the potential for another season of layoffs in the industry.
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