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USDA Announces Fiscal Year 2007 And Fiscal Year 2008 Sugar Program Provision


The U. S. Department of Agriculture and the Commodity Credit Corporation (CCC) today announced sugar program provisions for the remainder of fiscal year (FY) 2007 and the establishment of sugar marketing allotments for FY 2008.

CCC is reassigning FY 2007 surplus cane sugar allotment to imports as required by statute. Some of the reassignment will be allocated to allow for an increase in the FY 2007 specialty sugar tariff-rate quota (TRQ) of 20,000 short tons, raw value (STRV) in response to the growing demand for organic products. CCC also estimated FY 2008 supply and use. CCC determined that sugar marketing allotments must be established for FY 2008.

FY 2007 Sugar Marketing Allotment

CCC reviewed the sugar market supply and use estimates and is not adjusting the overall allotment quantity. The Agricultural Adjustment Act of 1938, as amended (1938 Act), requires CCC to make its final fiscal year estimate for program adjustment purposes in July. The current estimate of FY 2007 cane sugar supply, in combination with the current cane sugar allotment of 3,619,375 STRV, indicates a total domestic supply shortfall of 79,000 STRV. This shortfall, in accordance with statute, is reassigned as follows: 20,000 STRV to the FY 2007 specialty sugar tariff rate quota (TRQ) increase and 59,000 to FY 2007 non-program imports. These reassigned imports do not count against the import trigger of 1,532,000 STRV contained in the 1938 Act.

FY 2007 Specialty Sugar Tariff-rate Quota

USDA today announced an increase to the specialty sugar TRQ of 20,000 STRV. The additional specialty sugar TRQ will open on a first-come, first-served basis on Sept. 10, 2007. This specialty sugar must have a sucrose content, by weight in the dry state, corresponding to a polarimeter reading of 99.5 degrees or more.

The additional specialty sugar TRQ is reserved for organic sugar and other specialty sugars not currently commercially produced in the United States or reasonably available from domestic sources. Any specialty sugar certificate valid for the FY 2007 fourth or fifth tranches will be valid for this additional sixth tranche. To apply for a specialty sugar certificate, go to the Web site,


The total FY 2007 specialty sugar TRQ of 80,406 STRV is composed of: 1,825 STRV, which the United States must make available in accordance with its World Trade Organization commitments; 38,581 STRV announced on July 27, 2006; 20,000 STRV announced on March 23, 2007; and 20,000 STRV announced today.

The authority for modification of TRQs is the Harmonized Tariff Schedule of the United States, Chapter 17, Additional U.S. Note 5. As a result of this action, USDA increased the total FY 2007 refined sugar TRQ from 82,832 STRV to 102,832 STRV.

FY 2007 Sugar Market Impacts

CCC expects these actions to increase the FY 2007 sugar supply by 20,000 STRV, which is expected to result in a year-ending stocks-to-use of 15.5 percent, within the traditional range for a balanced domestic sugar market.

Sugar Marketing Allotments in Effect for FY 2008

CCC today announced that domestic sugar marketing allotments will be in effect for the upcoming marketing year, FY 2008, the period Oct. 1, 2007, through Sept. 30, 2008. The July 12, 2007, USDA World Agricultural Supply and Demand Estimates (WASDE) report indicated that imports will be below the threshold required to suspend allotments in FY 2008.

This decision is in accordance with the 1938 Act that requires CCC to make preliminary estimates of 2007-crop (FY 2008) sugar consumption, production, imports, reasonable carryover stocks (the level likely to avoid CCC sugar loan forfeiture) and carry-in stocks. CCC will announce the FY 2008 overall allotment quantity after the August 2007 WASDE report is released.


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