Sugar Producer

www.SugarProducer.com 21 manufacturing plants were the top reasons Sen. Debbie Stabenow of Michigan fought for the sugar policy in the 2018 Farm Bill. "From growing sugarbeets, to processing, to food manufacturing, sugar is an important part of Michigan's economy," said the Senate agriculture committee's top Democrat during a video address. "That's one reason why I have always fought for a strong sugar program in the farm bill." "The time is right to pass a good farm bill," said Republican Congressman Jack Bergman, whose district represents many Michigan farms. "It represents the consistency that you need, the reliability, and an ability to plan longer-term." TRADE TAKES CENTER STAGE Foreign subsidies and unfair trade practices in China and India were the focus of ambassador Gregg Doud's talk at the symposium. Doud is the U.S. Trade Representative's chief agriculture negotiator and gave an inside look at the American trade agenda. Tearing down trade barriers and holding trading partners accountable to their World Trade Organization (WTO) obligations top the priority list, he said. China, for example, is believed to have provided in excess of $100 billion more in subsidies to its farmers than it was allowed to, he said. India is also a major player in the world sugar market and has recently ratcheted up subsidies to prop up its inefficient sugar growers. "I can't think of a commodity that is more distorted," Doud said of the heavily subsidized world sugar market. "If you think there's a problem in steel, take a look at the sugar market." Rolling back foreign government intervention and creating a free flow of goods are top priorities for the Trump administration, he said. Ryan Weston, the incoming chairman of the American Sugar Alliance, thanked Doud and his team for their tireless work on behalf of rural America. "The impact of their work extends well beyond the farm," said Weston. "It creates jobs in factories and opportunities for families that wouldn't exist otherwise." PRICES KEEP DROPPING Overproduction, fueled by government subsidies, continues to push prices down on the world sugar market, according to a panel of market analysts. More than 20 million metric tons of sugar is now overhanging the market, said analyst Ben Fessler of C. Czarnikow Sugar. That's nearly twice as much as all Americans consume in a year. This surplus is largely driven by production expansions in India and Thailand, he said. And production in both markets is expected to grow throughout 2019. India and Thailand are known to be among the biggest subsidizers, with past estimates valuing government intervention at $1.7 billion and $1.3 billion a year, respectively. Dan Colacicco, a former USDA official who now consults for the U.S. sugar industry, says that falling global prices and growing foreign subsidies put U.S. producers at a disadvantage. "The distorted nature of the world market and the seemingly endless streak of foreign handouts is exactly why our country has a sugar policy," he said. "Without this policy in place, we'd be outsourcing production of a key food ingredient and rewarding other countries' bad acts." n We have one speed: GROW Nearly a century of breeding brings a full portfolio of sugarbeet thoroughbreds developed to win in specific climates and local growing conditions. Ask your dealer if MARIBO can tighten the reins on your field issues. MariboSeed.com thoroughbreds developed to win in specific climates and local growing conditions. Ask your dealer if MARIBO can tighten the reins on your field issues. MariboSeed.com Seed.com Maribo Producer Half Page Horizontal Aug 2018.qxp_Maribo 9/6/18 9:24 AM Page 1 1974-17HilleshogSeed12h.indd 1 9/11/18 9:36 AM

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