Wholesale Mexican Sugar Suppliers

Sugar is produced in many countries around the world. In general, farmers raise sugar beets in regions with temperate climates (for example, the northern United States, Europe, Ukraine, and Russia) and the sugar beets are processed into refined sugar. In tropical climates (where most of the world’s sugar is produced), sugar is obtained from sugarcane. Sugar beets and sugarcane are bulky commodities with a limited post-harvest shelf life. Consequently, sugar refineries are located close to areas where sugar beets and sugarcane are grown. Wholesale Mexican sugarcane growers receive payment for their cane from sugar mills.

The price is negotiated each year and is based on a complex formula involving sugar prices and other domestic and international market conditions. The SE, through the National Market Information Service (SNIIM), reports sugar prices on a monthly basis delivered to different cities in Mexico from different mills. At present, fine sanding sugar and brown sugar suppliers in Mexico is growing and soon it will grow much in the coming years. Mexico was only slowly granted access to the US sugar market. Mexico’s sugar consumption also remained relatively stable until, over the past five years, high world sugar prices prompted many of Mexico’s food and soft-drink manufacturers to substitute high-fructose corn syrup (HFCS) for sugar. 

The world and US sugar prices were at record-high levels early in this decade because of poor weather conditions. Over the past two years, however, world sugar production has increased and prices have declined, largely because of improved sugar-growing conditions in major production regions. The combination of unrestricted access to the US sugar market, increases in Mexican sugar production, and reductions in Mexican sugar consumption will result in Mexico being a major supplier of sugar to the United States. Hence, future US sugar production levels will need to account for this new trade environment if the US sugar program is to remain a “no cost to taxpayers” program.