Bakers’ Request for Additional Imports of Refined Sugar Granted by USDA

The USDA has agreed to increase the Tariff Rate Quota of refined sugar from Mexico by an additional 200,000 short tons. The move comes following an urgent meeting between USDA under secretary for Trade and Foreign Agricultural Affairs Ted McKinney, the American Bakers Association (ABA), and members of the Sweetener Users Association at the beginning of March 2020.

ABA highlighted the crucial need for a consistent source of refined sugar for production and market demand following abysmal sugar beet and sugar cane crop yields in the United States.

Lee Sanders, ABA’s senior vice president of government relations and public affairs, shared the impact the volatile sugar supply has on bakers and requested additional relief. In November 2019, the USDA granted increased imports of refined sugar by 100,000 short tons following notification from ABA. Additionally, in February 2020, the USDA reallocated 86,000 short tons of raw sugar to the U.S.

“This is a timely step toward our goal of 600,000 short tons of refined sugar. Our bakers certainly appreciate the reprieve, but more refined sugar will be needed to meet seasonal demands. We appreciate the USDA’s engagement with us and for considering the concerns of the baking industry,” said Sanders.

Because US sugar policy is based on a tightly controlled import market bound by tariff rate quotas (TRQ), ABA will continue to push the USDA for upward adjustments to the import quotas for sugar to account for this year’s decreased domestic production, the association said.