US sugar producers receive good news from Mexico

(Businessweek) – Red River Valley sugar officials say they are encouraged by a plan by Mexico’s soft drink industry to buy more of its own sugar and keep it out of North American markets.

U.S. sugar producers have complained that an increase in Mexican imports have led to lower prices and hurt an American program that is meant to keep the industry stable.

The Mexican Soft Drinks Association says its decision to buy an extra 400,000 metric tons of sugar should help alleviate the current oversupply of sugar in North America.

Red River Valley Sugarbeet Growers Association president Nick Sinner says he can’t predict the ramifications of the move, but he hopes the group honors the decision.

American Crystal Sugar CEO David Berg says “it has to be considered good news.”