The article analyzes the welfare cost of the US sugar program using a multimarket model of US sweetener markets. The latter Includes sugarcane and sugar beet, sugar extraction and refining, and sweetener users (food-processing industries and final consumers). The authors address the industrial organization of food industries using sweeteners and treat the United States as a large importer. With the removal of the program, this article estimates (all figures in 1999 dollars) that in 1998 cane growers, sugar beet growers, and processors would have lost $307 million, $650 million, and $89 million, respectively; sweetener users would have gained $1.9 billion. World prices would have increased by 13.2%. The dead-weight loss of the program is estimated at $532 million.
|Original language||English (US)|
|Number of pages||11|
|Journal||International Sugar Journal|
|State||Published - Jul 2003|
ASJC Scopus subject areas
- Food Science