Rising Cost of Sugar

My relatives in North Dakota expect that sugar beets will be more profitable than ever this year. The largest sugar refinery in the world (Al Khaleej Sugar Company) has experienced an increase in the cost of their raw. They atribute much of the increase to Brazil.

"Shakir Husain, Gulf News Dubai Dubai: With the world's dominant sugar producer
and exporter Brazil diverting its sugarcane crops to produce ethanol to provide
cheaper fuel for motorists, sugar prices may be turning sour for
consumers.Coupled with a general rise in sugar consumption, the energy factor in
sugarcane use is affecting supplies of sugar, an industry expert said. Sugar
prices have risen from $270 per tonne at the start of 2005 to above $400 per
tonne this week.In the UAE, a kg bag that used to cost about Dh50 is now priced
above Dh80. "We expect high sugar prices to prevail in the short term," said
Somit Banerjee, an assistant general manager for trading at Al Khaleej Sugar.
The UAE company sources its raw sugar from Brazil. There is a "perceived
shortage" of sugar in the market and prices are volatile," Banerjee said. This
year Brazil is expected to divert 54 per cent of sugarcane yield towards
producing biofuels. ...(25 January 2006)"