USDA reassigns sugar allotments, allocations
On August 2, the USDA will publish updates to the 2023-24 fiscal year state cane sugar allotments and sugar beet processor allocations. These annual adjustments, expected in advance, do not affect overall sugar supplies. Surplus allocations from five beet processors, totaling 338,967 tons, will be reassigned to processors with deficits, while the net 250,000 tons will go to raw cane sugar imports. For cane sugar, Florida’s 470,256 tons and Texas’s 164,341 tons of surplus will be reallocated, with 600,000 tons going to imports. The USDA’s Overall Allotment Quantity (OAQ) remains at 10,667,500 short tons, with reduced beet and cane sector allotments reassigned to imports.
WASHINGTON — The US Department of Agriculture in the Aug. 2 Federal Register will publish revisions for fiscal 2024 (2023-24 marketing year) state cane sugar allotments and allocations to sugar cane processors as well as company allocations to sugar beet processors. The shuffles are nearly an annual event and do not impact sugar supplies as the changes were previously expected.
The USDA is transferring 2023-24 (fiscal year 2024) allocations from sugar beet processors with surplus allocations (not enough sugar to fill the USDA allocation) to those with deficit allocations (more sugar available than is allowed to be marketed under the initial allocation). Five beet processors were short (surplus allocations) a total of 338,967 tons of their allocations. Some 88,972 tons were reassigned to two beet processors (Michigan Sugar Co. and Wyoming Sugar Co.) with sugar available to sell (deficit allocation), with the net 250,000 tons reassigned to raw cane sugar imports already anticipated.
For cane sugar, the process includes state allotments and cane processor allocations within those states. The USDA said Florida has surplus allotments of 470,256 tons and Texas a surplus allotment of 164,341 tons. Of that, 34,597 tons were reallocated to Louisiana, with the net 600,000 tons reassigned to raw cane sugar imports already anticipated.
Texas ceased cane sugar growing and milling after the 2022-23 season. Two cane processors in Florida had surplus allocations of 473,592 tons as well as the former Texas processor of 164,341 tons. One cane processor in Florida and two in Louisiana had deficit allocations totaling 37,933 tons.The USDA on Oct. 13, 2023, announced the initial 2023-24 Overall Allotment Quantity (OAQ) at 10,667,500 short tons, raw value, equal to 85% of domestic needs for the year that totaled 12,550,000 tons as forecast in the September 2023 World Agricultural Supply and Demand Estimates report. Of the 85%, statutes require 54.35% to allocated to beet processors and 45.65% to cane processors.
The beet sugar allotment initially was 5,797,786 tons and the cane allotment was 4,868,714 tons for 2023-24. The allotments then are distributed to individual processors according to statutory formulas. After the actions taken Aug. 2, the beet sector allotment was reduced by 250,000 tons, to 5,547,786 tons, and the cane sector allotment was reduced by 600,000 tons, to 4,268,714 tons. The amount of the reductions (850,000 tons) was reassigned to raw cane imports already anticipated, so the total OAQ remained at 10,667,500 tons, per the USDA.
Source Link : https://www.bakingbusiness.com/articles/62025-usda-reassigns-sugar-allotments-allocations
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