Sugar markets are down, causing many farmers in the Red River Valley and elsewhere in the U.S. to fret, as it is a commodity that many rely on to perform well when it comes to bringing in cash for the farm. Luther Markwart, CEO of the American Sugarbeet Growers Association and chairman of the board of the American Sugar Alliance, says one country in particular is hurting the nation’s sugar market.
“The problem with the sugar market today is we’ve got too many imports of Brazilian sugar. Brazil is one of the low cost producers in the world, around little over 15 cents a pound, and they’re selling it in the world market for 14 cents a pound. So they subsidize it, they dump it, and it is pouring in over our import restrictions. So that is part of the core problem,” he said.
According to Markwart, the Trump administration sent Deputy Secretary of Agriculture Stephen Vaden to the International Sweetener Symposium in Michigan this summer, where he listened to growers. The administration in July announced that sugar imports from Brazil over an agreed-upon limit would be subject to higher tariffs, a move that found favor in the sugar industry. Markwart also said Vaden and
Secretary of Agriculture Brooke Rollins
understand the issues facing the sugar industry and are trying to help.
While President Donald Trump
on Nov. 20 signed an executive order eliminating tariffs
on many Brazilian agricutural products,
sugar was not on the list of products.
Jenny Schlecht / Agweek
When it comes to the Red River Valley, Markwart said the region had a solid harvest season and yields were pretty good. But he is concerned about one plant disease that is prevalent in the area.
“One of the problems throughout the Red River Valley is
and that damaged sugar contents, and that is a significant impact on grower returns,” he said. “So when you put the disease pressure on top of low market prices, that is really hurting our producers. So we’re going to make our voices heard to our legislators, to the administration. We are really in a tough spot right now, so plans are underway to address those issues.”
Sugarbeet producers are worrying about the future of the commodity, and Markwart said he understands the concern, especially as producers go to talk to their bankers this winter season. However, he said many are hard at work to help alleviate those issues.
“The one thing is that the president likes farmers and he understands their problems, and I can’t tell you what he is going to do next,” Markwart said. “There are efforts underway to get some economic assistance to farmers, so I am hopeful that those things will play out, but it’s still in the very early stages. … There’s a lot of work going on behind the scenes to try to help out the American farmer.”
Another challenge the sugar industry is facing is the
where Markwart is worried about dietary guidelines that are to come out later this year or early next year.
“We want to make sure that the industrial additives — the alternatives — are looked at very closely. If you use the gold standard of science, you find that sugar is used in moderation in a well-balanced diet, and getting out and doing some athletic activities is very good, and so we’re looking and keeping an eye on those types of issues,” Markwart said.
Emily grew up on a corn, soybean and wheat farm in southern Ohio where her family also raises goats. After graduating from The Ohio State University, she moved to Fargo, North Dakota to pursue a career in ag journalism with Agweek. She enjoys reporting on livestock and local agricultural businesses.