But while we would prefer a more stable, predictable environment in which to do business, we must first review the fundamental facts about the industry and its policies so when the time comes to draw conclusions, these can be made based on complete information. The first fact is that sugar prices have been flat for 15 years. As the trend lines show, nominal sugar prices have been stagnant while real prices have dropped precipitously. The chart also shows that since the farm bill, prices are down dramatically, taking a nosedive of 30 percent just since last year. Prices now stand below the forfeiture level in all regions of the country.
Some people argue that in the case of sugar a flat price means a high price.
Let me assure you it doesn't. Without a strategy of growth to continually seek efficiencies and fight inflation, it is very likely that our factories would have closed. Some people blame the current price collapse on this strategy of growth. Well, that's not so plain and simple. The poor farm economy has forced shifts in acreage.