Sugar price at record high
Reaching their highest since the 1980s, sugar prices hit 22c (USD) per pound last month, prompting crisis warnings from global food giants
11 September 2009 | 0
Sugar prices have risen to their highest peak since the early 1980s, reaching 22.2c/lb (USD) on 13 August. The peak was the climax of an 80% increase in sugar prices since the beginning of the year.
According to analysts, the upward surge is owing to climatic conditions in the sugar-producing regions of India, the diversion of Brazilian sugar cane to produce ethanol, investor speculation and growing global demand.
In the US, major food companies such as Kraft have warned that the development could herald a larger food crisis. However, some commentators have dismissed their calls as an attempt to force the Government to remove sugar import quotas.
The EU meanwhile is increasingly reliant on imports, having incentivised producers to cut output, leaving manufacturers operating in the bloc more exposed.