The TUESDAY, AUGUST 14. 1945. World Shortage Of Sugar

Timaru Herald, Volume CLVIII, Issue 23278, 14 August 1945, Page 4

The TUESDAY, AUGUST 14. 1945. World Shortage Of Sugar

DEI'ORE the war the world’s sugar markets suffered from a perennial glut. The cost of production in the big cane-growing countries, such as Java and Cuba, had been steadily declining, but the beet-growing countries in Europe and North America were unwilling to pass on to their communities the benefits of technical advance in cane sugar production, and insisted on the maintenance, often at high cost, of beet production. In 1937 the International Sugar Council was formed with the object of restoring and maintaining equilibrium between supply and demand on the free market. It aimed at equating the exports of cheap sugar to the import demands limited by the protection granted to highcost producers. This partly explains why no more than 10 per cent, of the total world production of about 30 million tons of raw sugar was controlled by the Council, which represented 21 countries.

As in a number of other commodities,. the glut in sugar has changed into scarcity during the past six years. Java, oiie of the most important sources of supplies, passed into enemy hands, and the full restoration of cane sugar production in the Philippine Islands will require time. Before the war these two countries together produced 2,550,000 metric tons of raw sugar, equivalent to 13.8 per cent, of the world’s total production of cane sugar. In other exporting countries, such as Australia and the West Indies, production has declined since 1939. For example, Australia’s output of cane sugar in 1944, at 625,000 tons, compares with 815,000 tons in 1938. Fortunately Cuba, the world’s leading exporter, has been able to maintain its output. The sugar supplies available to the United Kingdom, the United States and Canada are sufficient to maintain the present ration if household consumption for canning and the industrial use of sugar are restricted. Even with these restrictions, however, it will be necessary to draw on stocks. The requirements of the United States in 1945 are estimated at 6,490,000 tons; they are to be met by a domestic production amounting to 1,140,000 tons and by imports of 5,350,000 tons, mainly from Cuba, Puerto Rico, South America and Hawaii. This is almost double the imports of 1937. The United States has achievea marvels of agricultural and industrial production during this war; but the cultivation of sugar beet has not been a success. From 1938 to 1940, sugar production from beet remained stable at some 1,630,000 tons. In 1943-44 it had decreased to 875,000 tons. In some instances sugar factories were turned over to the dehydration of potatoes because of the lack of sugar beet. In Great Britain normal consumption amounted to approximately 2,340,000 tons and in 1937-38 domestic production from sugar beet was 441,000 tons. For 1944 total consumption was about 69 per cent, of peacetime consumption. During 1945 a reduction of stocks from 500,000 tons to 216,000 tons is contemplated, and domestic production and imports from Dominica, British Guiana, the West Indies, Mauritius and Fiji may give total supplies for the year amounting to roughly 1,800,000 tons. In spite of the continued expansion in the acreage under sugar beet the yield in the crop in 1944 was only 400,000 tons of sugar. In Canada there has been a heavy decline in the acreage under sugar beet and the war in Europe inevitably interrupted production on the Continent.

The most serious problem, perhaps, is not so much tiie production of sugar-beet as that of raw sugar and the refining of raw sugar. This is a highly developed industry which demands skill and adequate supplies of coal and certain chemicals. In France half the 1944 beet crop could not be processed because of the lack of coal. Similar difficulties will arise in Belgium, Holland, Denmark, Germany and other countries. Even without any destruction by war, Germany’s sugar production decerased during the 1914-18 war by 50 per cent., and average yields were not restored for 10 years. This time there has been much destruction of industrial equipment. At present industry in general is at a standstill and’the most necessary requirements for the cultivation of beet, such as labour, fertilisers, and above all coal for the processing of the crop, are lacking. At the same time absence of the by-products which formed an important fodder for livestock will gravely affect the livestock population. The restoration of sugar production on the Continent is above all a problem of the restoration of industry and transport, especially of the coal and chemical industries. If the situation after the last war can be taken as a guide, the restoration will take several years.