The impact of food companies switching from genetically modified beet sugar to non-GMO cane sugar is dominating the program at the Sweetener Users Association's annual International Sweetener Colloquium that began Monday.
The event opened with a speech by Agriculture Undersecretary for Farm and Foreign Agricultural Services Michael Scuse and presentations by market analysts.
Beet sugar distribution has gone down 9.5% in recent months while the cane refiner melt has gone up, according to the Agriculture Department, and the shift of companies such as Hershey and Campbell's Soup to non-GMO ingredients appears to be part of a trend that may increase over the next several years.
The shift has, in essence, created a shortage of cane sugar and -- combined with a big sugar beet crop -- created a glut of beet sugar in the United States.
The cane refining industry and the Sweetener Users Association have asked the Agriculture Department to increase the raw sugar tariff-rate quota (TRQ) under the World Trade Organization so that cane refiners will have more raw sugar to refine and supply to food companies.
In a Feb. 2 letter to Scuse, the Sweetener Users wrote, "The U.S.-Mexico suspension agreements have unintentionally tightened supplies of raw cane sugar and artificially increased domestic raw sugar prices above levels that are consistent with the U.S. sugar price support program."
"Both of these consequences have a negative impact on the cane refining sector, and in turn, on their customers, the businesses that use sugar in making foods and beverages," the letter said.
"Fortunately, USDA has the power to at least mitigate these harms by increasing the raw sugar TRQ. We urge you to do so as soon as possible."
Industry views on the request are complicated because both beet and cane growers now own a lot of the sugar processing facilities in the country.
The American Sugar Alliance, which represents domestic beet and cane growers, generally has opposed increases in tariff-rate quotas, but have not reacted directly to this request.
"U.S. sugar producers continue to monitor supply and demand data, just as the USDA is doing," ASA spokesman Phillip Hayes said in an email to DTN.
"Maintaining a strong U.S. sugar policy has been, and will continue to be, the top priority for both the beet and cane sectors," Hayes said.
"In fact, sugar beet and sugarcane producers are teaming up this week during a Capitol Hill fly-in to remind lawmakers how vital the farm safety net is to rural America -- especially as foreign subsidies continue to rise."