Rotation of the crop on a yearly basis to reflect or anticipate swings in general commodity prices does not occur in sugar. Changes in acreage and in production to reflect wholesale or retail price levels of sugar occur more slowly and over a longer period of time. Stability, not volatility in prices, is what all sugar producers hope to achieve, so long as the price they receive is above their cost of production, or in the case of a cane refinery the cost of raw sugar acquisition plus a refining margin sufficient to cover refining costs and provide for a reasonable return on investment. The uniqueness of sugar is the primary reason that government agricultural policies support sugar to the extent they do. The investments are large, the land use flexibility is minimal, and employment is critical.
Governments respond in kind.
In many countries this direct support leads to overproduction. Overproduction then leads to dumping of sugar on the world market. And, ultimately the world market price bears no relation to the actual cost of producing sugar. In the United States, we support sugar producers indirectly. We limit imports in the hope that domestic prices will settle at levels that yield a fair and reasonable return to growers.