Business & Finance: Too Much Sugar

In the very general feeling of prosperity now experienced by U. S. business, the sugar trade has not shared. Raw sugar has recently dropped to 2¢ a pound—the lowest price since 1922. Prophecies of a further decline in raw sugar to l¾¢ a pound are common, since a huge increase in the supply is overhanging the markets.

For 1924-25 the world output of sugar is estimated at 23,233,035 tons—3,418,000 tons over production in the previous year. Cuban output is placed at 5,125,970 tons— an increase of about a million tons over 1923-24. Similarly European output is set at 7,078,000 tons—an increase of about two million tons.

Worst of all, to the sugar trade at least, is the prospect for still further production increases in 1925-26. The present prices, however, are already below cost of production for most Cuban sugar-mills. There is little prospect of an increase in consumption sufficient to absorb the impending surplus.