U.S. Consumers Prefer Sweeteners Made From Sugarcane Over Sweeteners Made From GMO Beets
U.S. is buying sugar from Mexico as buyers prefer sweeteners from sugarcane instead of beets. Mexico said they have enough of these sugarcane sweeteners and are poised to ship to U.S. Consumers fear that they might be buying genetically modified beet sweeteners.
"We are now buying only cane sugar for our products," Jeff Beckman, a spokesman for Hershey said by e-mail April 1. The decision "is about being consumer-centric and listening to what consumers want and expect from our products. Non-GM ingredients is something our consumers are telling us is important to them. Even with the shift to cane sugar, the majority of the sugar we use in our U.S. products today is grown in the U.S."
U.S. sugar prices made from sugarcane have surged to 6.8% in 2016 as need for beet supplies declined. As opposed to the world price, it fell to 5.6%. On Tuesday, the U.S. Department of Agriculture will bring up to date information on its crop production forecast, imports and use, reports Bloomberg.
According to the president of Mexico's sugar chamber, Juan Cortina, U.S. sugar refiners are keen to have a renegotiation of the suspension agreements signed by U.S. and Mexico in December 14 allowing U.S. to import more standard sugar. However, Mexico is not interested about the idea but can ship 300,000 to 500,000 tons of standard sugar to their refineries without any change in the suspension deal where the two nations created quotas and minimum sales price, as reported by Reuters.
Meanwhile prices of sugar in EU had fallen to more than 40% during the past three years, adding to the current low world prices. The global sugar prices also appears to be bottoming out, although analysts say that could be reversed by the deregulation in the European Union of its sugar market based on the Financial Times report.
Mexico's shipment of raw sugar to the U.S. will give refineries relief as well as the consumers as more buyers are aware of GMO crops like beets that could put health at risk.