ASA releases report on Russian sugar industry
The American Sugar Alliance last week released the report “Russia’s Sugar Industry: Transformation with Government Intervention.”
The report, authored by Patrick Chatenay and Sergey Gudoshnikov, details how Russia engineered this sudden shift in sugar production, and why the government sought to regenerate its domestic sugar industry.
“Since its inception, the Russian Federation has placed a high priority on domestic food security,” ASA said.
“Reducing Russia’s dependence on foreign sugar took on increased urgency as long-time supplier Cuba’s sugar market collapsed. Russia was forced to rely on the uncertain, unreliable and volatile global sugar market, which is widely considered to be the most distorted commodity market in the world as rampant global subsidization has led to overproduction and predatory pricing. That pricing drove Russia to control and limit subsidized imports and utilize direct and indirect subsidies to bolster its own inefficient sugar industry.”
“This report sheds much needed light on the measures Russia has taken to spur domestic sugar production,” said Robert Johansson, ASA’s associate director of economics and policy analysis and former chief economist at the Agriculture Department.
“Russia’s newfound role as a potential sugar exporter requires close monitoring, as its decisions moving forward will now carry additional ramifications for the over-subsidized global dump market for sugar. We take seriously the authors closing observation on the certainty of continued Russian involvement with the sugarbeet industry.”
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