U.S.D.A. reassigns unused cane sugar allotments

by Ron Sterk
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WASHINGTON — The Commodity Credit Corp. of the U.S. Department of Agriculture on June 23 said it reassigned projected unused domestic cane sugar allocations among sugar cane processors, cane producing states and imports.

The agency left beet sugar allotments unchanged at 4,592,575 tons, raw value, as well as the 2007-08 overall allotment quantity, which was set at 8,450,000 tons, on Sept. 27, 2007.

Cane sugar allotments, which were set at 3,787,425 tons in September 2007, were reduced by 160,892 tons, to 3,626,533 tons. The amount reassigned to imports last September of 70,000 tons was increased by a like amount of the cane reduction, to a total of 230,892 tons, the U.S.D.A. said.

The changes were the result of a required midyear review of sugar allocations, the department said.

Reassignments by state included an increase of 95,006 tons for Louisiana, to 1,568,582 tons, and reductions of 172,141 tons for Florida, to 1,648,462 tons, 35,600 tons for Texas, to 162,500 tons, and 48,157 tons for Hawaii, to 246,988 tons.

"All domestic sugar cane processors were given an allocation that permits them to market their fiscal year 2008 raw sugar supply," the U.S.D.A. said.

Since 160,892 tons of the domestic allocation was expected to be unused, that amount was reassigned to imports.

"This action does not represent an increase in import access to the U.S. but merely an assignment to Mexican imports that are already reflected in the WASDE (World Agricultural Supply and Demand Estimates)," the U.S.D.A. said.

The changes also reflect the transfer of allocations for South Louisiana Sugars Cooperative, Inc., which closed in 2007, to several other processors.

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