"The price of most organic food could jump this fall due to new policies and tariffs on imported organic sugar, frustrating manufacturers who say the actions won't help sugar growers but could put some food companies out of business. More than 90% of organic sugar used by U.S. manufacturers is imported. The price of that product increased in August when the Trump administration imposed steep trade tariffs, and will rise even more when high-tier duties on most organic sugar imports take effect Oct. 1."
"The result, according to the Organic Trade Association, is that the price of organic sugar is expected to soar by an average of 30%, increasing costs of producing most organic foods everything from yogurt to cookies. Each year, the U.S. imports 1,825 tons (1,656 metric tons) of specialty sugar because it's required under a World Trade Organization agreement. But demand for organic sugar far exceeds that amount, so the U.S. Department of Agriculture sets an annual quota for the amount of specialty sugar that can be imported into the U.S. duty-free."
New U.S. import restrictions and tariffs on organic sugar are set to raise prices sharply this fall. More than 90% of organic sugar used by U.S. manufacturers is imported. August tariffs already increased prices, and high-tier out-of-quota duties take effect Oct. 1. The Organic Trade Association expects organic sugar prices to rise about 30%, raising production costs for many organic foods. Annual WTO-required imports amount to 1,825 tons, while USDA duty-free quotas previously supplemented that amount. The USDA says the policy aims to help the domestic sugar industry, and manufacturers warn of potential business closures.
Read at www.bostonherald.com
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