U.S.D.A.: 2007-08 sugar marketing allotment in place

by Ron Sterk
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WASHINGTON — The Commodity Credit Corp. of the U.S. Department of Agriculture said July 31 that domestic sugar marketing allotments would be established for the 2007-08 marketing year but did not adjust the overall allotment quantity (O.A.Q.) for the current year.

The C.C.C. said sugar marketing allotments must be established for 2007-08 based on the July 12 U.S.D.A. World Agricultural Supply and Demand Estimates (WASDE) report that indicated imports would be below the threshold required to suspend allotments for the Oct. 1, 2007, to Sept. 30, 2008, period.

The O.A.Q. for 2007-08 will be announced after the release of the Aug. 10 WASDE report, the C.C.C. said.

Although the total amount of the O.A.Q. for 2006-07 was not changed, the C.C.C. did reassign surplus cane sugar allotment to imports as required by statute.

"The current estimate of 2006-07 cane sugar supply, in combination with the current cane sugar allotment of 3,619,375 short tons, raw value, indicates a total domestic supply shortfall of 79,000 tons," the C.C.C. said. It assigned 20,000 tons to the specialty sugar tariff rate quota (T.R.Q.) and 59,000 tons to non-program imports, which will not count against the import trigger of 1,532,000 tons.

The 20,000 tons assigned to the specialty sugar T.R.Q. will open on a first-come, first-serve basis on Sept. 10, 2007, the C.C.C. said, and is reserved for organic sugar and other specialty sugars not commercially produced in the United States.

The 20,000-ton increase in the 2007 sugar supply is expected to result in a stocks-to-use ratio of 15.5%, which is within the traditional range for a balanced domestic sugar market, the C.C.C. said.

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