SUGAR AND SWEETENERS -- SUMMARY             September 27, 2001
September 2001, ERS-SSS-232
               Approved by the World Agricultural Outlook Board
----------------------------------------------------------------------------
This SUMMARY is published by the Economic Research Service, U.S. Department 
of Agriculture, Washington, DC 20036-5831.  The complete text of the report
will be available electronically about 1 week following this summary 
release.
----------------------------------------------------------------------------
USDA Announces the Fiscal Year 2002 Sugar Tariff-Rate Quotas

On September 18, 2001, the U.S. Department of Agriculture (USDA) 
established the fiscal year (FY) 2002 tariff-rate quotas (TRQ) 
for imports of sugar at 1,288,983 metric tons, raw value (MTRV), 
or 1,420,861 short tons, raw value (STRV). The total includes a 
quantity for raw sugar of 1,117,195 MTRV, the minimum level to 
which the United States is committed under the World Trade 
Organization (WTO); a quantity for refined sugar of 34,000 MTRV; 
and a required quantity of 137,788 MTRV for Mexico under the 
North American Free Trade Agreement (NAFTA) that may be entered 
as raw or refined sugar. USDA has made the entire TRQ amount  
available to the U.S. Trade Representative (USTR) for allocation 
for import into the U.S. customs territory. 

Other imports for FY 2002 are projected to total 295,000 STRV, 
including 265,000 STRV under the combined Refined Sugar Re-export 
Program, the Sugar-Containing Products Program, and the 
Polyhydric Alcohol Program. Sugar derived from sugar syrup 
imports under the U.S. Harmonized Tariff Schedule Code 1702.90.40 
are expected to total only 5,000 STRV due to a recent U.S. Court 
of Appeals decision. High-tier tariff sugar imports for FY 2002 
are projected at 25,000 STRV. 

On August 31, 2001, the USDA announced the Payment-in-Kind (PIK) 
Diversion Program, designed to reduce the Commodity Credit 
Corporations (CCC) inventory of surplus sugar which costs $1.35 
million each month. 

USDA projects FY 2002 (October/September) beet sugar production 
at 4.150 million STRV. This projection does not take into account 
the potential effects of the PIK Diversion Program, but does take 
into account the closing of processing plants in California and 
Washington State and other negative effects of low producer 
prices. Cane sugar production for FY 2002 is projected at a 
record 4.195 million STRV, about 3 percent above the estimated 
total for FY 2001. Production is projected to increase in 
Louisiana and Hawaii, be steady in Florida, and decrease in 
Texas.

Sugar exports for FY 2002 are projected at 125,000 STRV. 
Deliveries to domestic food and other products manufacturers 
under the Sugar-Containing Products Re-export Program are 
projected at 85,000 STRV, and deliveries for the Polyhydric 
Alcohol Program are projected at 15,000 STRV. Total deliveries 
for FY 2002 are projected at 10.440 million STRV. After netting 
out deliveries made for the Sugar-Containing Products and 
Polyhydric Alcohol Programs, along with deliveries for livestock 
feeding (20,000 STRV), domestic food and beverage deliveries are 
projected at 10.320 million. The USDA will project FY 2002 ending 
stocks in the October World Agricultural Supply and Demand 
Estimates (WASDE) report is released, when more details about the 
PIK Diversion Program, sales to ethanol producers, and possible 
TRQ shortfalls become known.

Beet sugar production for FY 2001 is estimated at 4.600 million 
STRV. Cumulative extraction of sugar from 2000-crop sugarbeets is 
estimated at 277 pounds per ton. Cane sugar production for FY 
2001 is estimated at 4.072 million STRV. Production was strong in 
Florida and Texas, but dry conditions in Louisiana and Hawaii 
limited production. Production in Hawaii was also affected by 
mill closures.

Sugar imports under the raw and refined sugar TRQ are currently 
estimated at 1.245 million STRV. As of September 4, 2001, sugar 
imports under the TRQ have amounted to 989,254 STRV, or about 79 
percent of the amount estimated to enter for FY 2001. Sugar 
imports outside the sugar TRQ for FY 2001 are estimated to total 
365,000 STRV, including 280,000 STRV under the combined Refined 
Sugar Re-export Program, the Sugar-Containing Products Program, 
and the Polyhydric Alcohol Program. 

U.S. sugar exports are estimated in the September 2001 WASDE at 
125,000 STRV. Total deliveries for FY 2001 are estimated at 10.26 
million STRV. Ending stocks are estimated at 2.065 million STRV, 
indicating an ending stocks-to-use ratio of 19.8 percent. Sugar 
stocks held by the CCC, net of expected sales to ethanol 
producers, are estimated at 740,000 STRV.

Printed copies of the Sugar and Sweetener Situation and Outlook 
report will be available in about 4 weeks. This issue contains 
two special articles entitled The Brazilian Sugar Industry: 
Recent Developments and U.S. and World Sugar and HFCS 
Production Costs, 1994/95-1998/99. For more information, 
contact Stephen Haley 202-694-5247. The text of the report will 
also be available electronically via the ERS website at 
www.ers.usda.gov.

END_OF_FILE