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Changes in the U.S. Demand for Sugar and Implications for Import Policies

Published online by Cambridge University Press:  10 May 2017

Rigoberto A. Lopez  and
Jorge L. Sepulveda
Rigoberto A. Lopez
Affiliation:
Department of Agricultural Economics and Marketing, Cook College, New Jersey Agricultural Experiment Station, Rutgers University, New Brunswick, New Jersey, 08903
Jorge L. Sepulveda
Affiliation:
Department of Agricultural Economics and Marketing, Cook College, New Jersey Agricultural Experiment Station, Rutgers University, New Brunswick, New Jersey, 08903
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Abstract

The thrust of this paper is to identify and measure structural changes in the U.S. demand for sugar and to derive subsequent implications for import restriction policies. Empirical results indicate that changes in consumer preferences and the availability of closer and cheaper sweeteners in food processing, especially high fructose corn syrup (HFCS), are exerting a downward pressure on sugar demand. As the U.S. demand for sugar decreases and the food industry adjusts faster to sweetener choices, the U.S. government would have to impose more restrictive import barriers to maintain prices to domestic sugar and HFCS producers. Furthermore, the welfare impact of U.S. sugar policy options on domestic consumers and food processors will be lessened.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 14 , Issue 2 , October 1985 , pp. 177 - 182
Copyright
Copyright © 1985 Northeastern Agricultural and Resource Economics Association 

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Footnotes

The authors are grateful to Kay Sachtler, Thomas Spreen, and two anonymous referees, for helpful comments on an earlier draft.

New Jersey Agricultural Experiment Station, Publication No. D-02121-1-85, supported by State and U.S. Hatch Act funds.

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