SUGAR AND SWEETENERS OUTLOOK -- SUMMARY                      May 23, 2003
ERS-SSS-237

               Approved by the World Agricultural Outlook Board
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This SUMMARY is published by the Economic Research Service, U.S. Department 
of Agriculture, Washington, DC 20036-5831.  The complete report will be 
available electronically about 1 week following this summary release.
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USDA INCREASES SUGAR MARKETING ALLOTMENTS

Under authority granted in the Farm Security and Rural Investment Act of 2002, 
the U.S. Department of Agriculture (USDA) announced on May 13, 2003, that it was 
immediately raising the Overall Allotment Quantity (OAQ) for sugar marketing 
allotments by 463,000 short tons, raw value (STRV), to 8.663 million STRV. The 
resulting sector allocations for the 2002 crop are:

?	Beet sugar:		4.708 million STRV
?	Cane sugar:		3.955 million STRV

Total			8.663 million STRV

By statute, the OAQ of sugar for a crop year is determined by subtracting the 
sum of 1.532 million STRV and carryin stocks of sugar (including inventory owned 
by the Commodity Credit Corporation) from the USDA’s estimate of sugar 
consumption and reasonable carryover stocks at the end of the crop year. The OAQ 
is divided between refined beet sugar at 54.35 percent of the overall quantity 
and raw cane sugar at 45.65 percent of the overall quantity.

According to the formula, the estimated sugar consumption of 9.6 million STRV as 
reported in USDA’s May 12, 2003, World Agricultural Supply and Demand Estimates 
report (WASDE) and implied reasonable carryout of 1.876 million STRV (19.25 
percent of total use of 9.725 million STRV) are added. Subtracted from this 
total are the estimated carryin of 1.281 million STRV and the statutory 1.532 
million STRV. 

On May 12, 2003, the USDA released its latest supply and use estimates for 
fiscal year (FY) 2003 and projections for FY 2004 in the WASDE. The USDA 
estimates sugar production for FY 2003 at 8.4 million STRV. Beet sugar 
production for FY 2003 is estimated at 4.45 million STRV, and is based on the 
April 2003 beet sugar processors survey conducted by USDA’s Farm Service Agency 
(FSA). Cane sugar production for FY 2003 is estimated at 3.95 million STRV. 
Sugar production was strong in all States except Louisiana where production was 
off due to complications from tropical storm Isidore and by Hurricane Lili in 
the fall.

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