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Economic Surpluses In The U.S. Sugar Market

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  • Lopez, Rigoberto A.

Abstract

The objective of this article is to estimate historical economic surpluses for the subsectors involved in the U.S. sugar market. Annual producer and consumer surpluses were computed based on a five-equation model and 1958-87 data. In the last decade, the welfare position of cane- and beet-sugar producers has been roughly maintained, the domestic consumer surplus and the export quasi-rents to foreign countries have both declined, and quasi-rents of the corn-sweetener industry now surpass those that accrue to the cane industry and are about the same as those of the beet-sugar industry. Some policy implications are discussed.

Suggested Citation

  • Lopez, Rigoberto A., 1990. "Economic Surpluses In The U.S. Sugar Market," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 19(1), pages 1-9, April.
    • Handle: RePEc:ags:nejare:28970
    DOI: 10.22004/ag.econ.28970
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    References listed on IDEAS

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    1. Carman, Hoy F. & Thor, Peter K., 1979. "High Fructose Corn Sweetners: Economic Aspects of a Sugar Substitute," Information Series 263852, University of California, Davis, Giannini Foundation.
    2. Lopez, Rigoberto A. & Sepulveda, Jorge L., 1985. "Changes In The U.S. Demand For Sugar And Implications For Import Policies," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 14(2), pages 1-6, October.
    3. Barry, Robert D. & Angelo, Luigi & Buzzanell, Peter J. & Gray, Fred, 1990. "Sugar: Background for 1990 Farm Legislation," Staff Reports 278852, United States Department of Agriculture, Economic Research Service.
    4. Roe, Terry & Shane, Mathew & Vo, De Huu, 1986. "Price Responsiveness of World Grain Markets: The Influence of Government Intervention on Import Price Elasticity," Technical Bulletins 157021, United States Department of Agriculture, Economic Research Service.
    5. Sturgiss, Robert & Wong, Gordon & Borrell, Brent, 1987. "Policy Intervention, Price Variability and the International Sugar Agreement: An Econometric Model of the World Sugar Market," Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) Archive 316157, Australian Government, Australian Bureau of Agricultural and Resource Economics and Sciences.
    6. Jabara, Cathy L., 1988. "Effects of Agricultural Protection on Food Manufacturing: The U.S. Sugar Program," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270311, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Jesse, Edward V. & Zepp, Glenn A., 1977. "Sugar Policy Options for the United States," Agricultural Economic Reports 307625, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Lee, Dae-Seob & Kennedy, P. Lynn, 2005. "Demand behavior of U.S. high fructose corn syrup (HFCS) and its implication for the U.S. sweetener market: a cointegration analysis," 2005 Annual meeting, July 24-27, Providence, RI 19564, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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