Sugar Producer

38 Sugar Producer NOVEMBER / DECEMBER 2014 During the 31st International Sweetener Symposium, the American Sugar Alliance unveiled two educational videos to illustrate the ever-increasing rates of foreign sugar subsi- dization that are destroying the free market. The first video described the stagnant, low- price environment in North America and steps taken by the U.S. sugar industry to increase its efficiency to survive, including new technol- ogy, plant modernization, farmer cooperative arrangements, vertical integration, and invest- ments in workforce training. "But not everyone in North America favored these same business models," the ASA video explained. "[Mexico's] inefficient producers stayed in business and aren't making needed improvements…because the Mexican govern- ment bailed them out, taking control of half the country's sugar mills to avoid bankruptcies." In addition to government ownership, ASA said other Mexican subsidies, including preferential loans, debt forgiveness, and cash to cover operating losses, are being used to "further coddle inefficient producers." With the aid of these subsidies, Mexican producers are now dumping sugar onto the U.S. market and harming U.S. farmers, work- ers, and taxpayers, ASA said. "American producers and American con- sumers deserve better than being trampled by foreign treasuries and unfair trade practices," the video concluded. "They deserve a market where hard work and ingenuity are rewarded, not punished." Of course, the North American market isn't the only one being wrecked by subsidies. The second ASA video described the global dump market, which is widely considered the most distorted commodity market the world. Specifically, ASA discussed the subsidy run- up currently under way by the world's biggest sugar producers: Brazil and India. "Brazil is no stranger to sugar subsidies," the video explained. "Using $2.5 billion a year worth of government involvement, the country has achieved an OPEC like stranglehold on the world market." On top of that, Brazil recently added new preferential loans, ethanol industry bailouts, and direct subsidies. Not to be outdone, India also created new subsidies, ASA continued. In addition to government price control, tariffs, and export mandates, India has added "direct subsidies to boost exports, a doubling of import duties, and new sugar ethanol blending requirements to expand domestic sugar use." ASA explained that the result has been "a complete annihilation of free trade" and a "new market environment [that] is creating a sinking tide that's flushing everyone down the drain." Global sugar production costs hit 27 cents a pound in 2013, up sharply from 15 cents in 2002. "American producers are also promoting a common-sense solution to foster a freer global market," the video concluded. "Called the zero-for-zero sugar policy, it is a global subsidy cease-fire where the best, most efficient busi- ness people—not the most subsidized—would succeed." Both videos can be viewed at www.sugaralliance.org. n ASA Produces Two Sugar Policy Videos FROM THE ASA By Phillip Hayes Editor's note: Hayes is the director of media rela- tions for the American Sugar Alliance. Email him at phillip@sugaralliance.org. The second edition of sugarbeet seed producer SESVanderHave's Technical Days took place Aug. 27-28 in Worms, Germany. This two-day scientific conference focused on the impact of nema- todes on sugarbeets. For a sugarbeet producer to bring together scien- tists and industry players to share their knowledge is a first. The conference combines nematode theory and practice. The first day of the conference mainly focused on the global spread of the para- site and potential control methods. Nematode experts from around the globe shared their insights with more than 200 colleagues. Day 2 of the conference consisted of a field visit organized by SESVanderHave in collaboration with various external partners from the German sugarbeet industry. Attendees were invited to witness for themselves the results of different nematode trials. The choice of Germany as the location was both symbolic and practi- cal. SESVanderHave has been active on the German sugarbeet market for several years and has already successfully launched two seed variet- ies: VASCO and ALCEDO. SESVanderHave is specialized in every aspect of the research, breeding, biotechnology, production, processing and marketing of sugarbeet seed. Visit www.sesvanderhave.com. n International Conference Brings Together Science and Industry SESVanderHave's Technical Days SHARING KNOWLEDGE Field guides explain practical field issues about nematodes at SESVanderHave's Technical Days in Worms, Germany.

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