Local sugar supplies in Mexico are becoming scarce, driving prices high and forcing some businesses to move operations elsewhere, according to a top Mexican sugar industry spokesman.
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Hector Alvarez de la Cadena, president of the Mexican manufacturing chamber sugar commission, said high sugar prices have meant that some chocolate and confectionery makers have found it difficult to locate a local sugar supply, reported Reuters.
The Mexican Cane Workers Union has estimated that production for the 2002/03 harvest will be around 4.85 million tonnes of sugar, of which 4.65 million tonnes will be consumed domestically. The previous harvest came in at 4.87 million tonnes.
The surplus sugar after taking domestic consumption into account is too little to satisfy demand among the manufacturing industry and what little sugar is available is spread out across the country making its difficult to locate.
“I know of people moving their operations to Costa Rica (because of this)” Alvarez was quoted as saying by Reuters.
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By GlobalDataSugar prices in Mexico have risen by at least 20% since September 2001, when the Mexican government expropriated around half of the nation’s sugar mills.
