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Home « Business « Sugar price rise not so sweet
Sugar price rise not so sweet
Midland Empire businesses feeling the impact
by Ahmad Safi
Sunday, September 20, 2009
Sugar prices are on the rise.

Photo by Eric Keith / St. Joseph News-Press / Purchase this photo

Sugar prices are on the rise.

Using nearly 2 tons of sugar per season, Roxann Shook expects to withstand the global increase in sugar prices this year. She has a contract that allows her to buy sugar at last year’s price.

But the owner of Candyman in Lathrop, Mo., isn’t so sure about next year. She is hoping soaring sugar prices won’t give a sour feeling to her mostly mail-order customers of candy-making supplies.

“Last year it was coconut. There was a vast jump in coconut. Now it’s sugar,” said Ms. Shook, who operates the seasonal retail store from October to December. “I imagine there will be an increase in chocolate itself because the chocolate is processed with milk sugar.”

Along with corn and rice, you can now add sugar to the list of fluctuating commodity foods that can reliably strain your pocketbook.

Sugar prices have been on a steady rise this year — as much as 5 cents a pound on bagged sugar — and some manufacturers and retailers have increased the cost on their sweet-toothed customers.

At Russell Stover in St. Joseph, the price for a chocolate box has risen nearly a dollar since July due partly to higher sugar prices, said manager Jean Williams. Higher transportation costs also have driven up the cost, she said.

Food industry experts predict sweet treats and staples will rise as the year progresses and into the holiday baking season.

Some of the nation’s largest food producers are even warning that a worldwide shortage of sugar is possible. They’re warning the Obama administration to lower trade tariffs on sugar, which would allow them to buy it from overseas for cheaper.

Domestic sugar producers have countered, saying there’s plenty of sugar available and raising quotas could drive down their business.

Robert Kelly, an agricultural business specialist at the University of Missouri Extension office in St. Joseph, said the increase in sugar prices is a shock for a food item that has traditionally maintained a level price.

He said grocery stores and retailers are likely to pass the increased sugar cost to the consumer, while food manufacturers may simply opt for a sugar replacement.

“That’s the thing with an ingredient like sugar. If sugar increases in cost, other ingredients like high fructose corn syrup can be used in its place,” Mr. Kelly said. Such a move would be a boon to corn farmers in the Midwest and sugar beet farmers in the North, he said.

Ms. Shook, the candy store owner, said even if the price for sugar continues to drive up the cost for sweets, her customers will continue to satisfy their sweet tooth in a recession.

“Even in the Depression era, ice cream and candy still made it through that rough time,” she said. “It doesn’t suffer as much. It’s a comfort item.”

Ahmad Safi can be reached at ahmadsafi@npgco.com.

The Associated Press contributed to this story.

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Mookie625 September 20, 2009 at 12:57 a.m. (Suggest removal)

I saw the increase in sugar at a store when i was grocery shopping friday. a 5lb bag of store brand was $3.16. I almost fainted when i saw that price.
Sugar is now the Gold at my house.

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