We will never run out of sugar

Some of the nation's most famous food companies, including Kraft, General Mills, and Hershey, have warned the federal government that we could "virtually run out" of sugar in the near future. The American Sugar Alliance stated that we actually have a surplus. Which one to believe?

American sugar producers make about 8.5 million metric tons per year. In addition, the USDA allows 1.3 million metric tons to be imported from other countries. And, because of NAFTA, Mexico can give us an unlimited amount. Americans use only 10 million tons a year, so the excess sugar is stockpiled in warehouses. If demand suddenly increases, producers would take from these stockpiles. And if demand is still too high, the USDA simply boosts the import quotas. That's why we will never run out of sugar.

The aforementioned companies freaked out about sugar supply because there's a shortage outside the country -- Brazil uses more cane for ethanol and India is experiencing droughts. As a result, prices on the global market for sugar is at a 28 year high. We don't buy from that market, however. We buy from already existing trade agreements.