Guatemala may be allocated more sugar under the TRQ program

Analytikerna förväntar sig att Guatemala kommer att producera cirka tre miljoner ton mer socker för säsongen 2022/2023, nästan identisk med förra årets skörd. Sockerproduktionen har förblivit densamma på grund av bristen på tillgång till mark. Socker konkurrerar med bananer och palmolja för markanvändning i Guatemalas södra region. Guatemala är den största sockerproducenten i Centralamerika och Karibien.

Analysts expect Guatemala to produce around three million tons more sugar for the 2022/2023 season, almost identical to last year’s harvest. Sugar production has remained the same due to the lack of access to land. Sugar competes with bananas and palm oil for land use in Guatemala’s southern region. Guatemala is the largest sugar producer in Central America and the Caribbean.

So far, Guatemala’s sugar production in the first twenty weeks of its harvest is off to a strong start. Guatemala’s sugarcane and sucrose harvests for the 2022-2023 harvest have been above the average of the previous year’s harvests. The country consumes just under one million tons of sugar domestically, while around 1.75 million tons of sugar are exported to the world market, mainly the United States.

Guatemalan sugar exports

Unlike most countries, Guatemala exports most of the sugar it produces. Guatemala’s exports have ranged between 1.75 million tons and 1.89 million tons over the last six harvests. The only harvest that went below this threshold was in 2020/2021. The 2020/2021 harvest was remarkably low due to large amounts of rain that season.

Guatemala mainly exports its sugar to the US under the CAFTA agreement and the TRQ quota. Guatemala has the third largest TRQ quota in Latin America with 50 kmt of duty-free quota.

Mexican sugar has problems

The 2022-2023 Mexican sugar harvest has been disastrous. The 2022-2023 sugarcane harvest and sugarcane crush are significantly lower than previous harvests.

Although the US has had a solid start to its harvest, it has increased its TRQ allocations to several countries to alleviate the decline in Mexican production. The US granted Guatemala an additional 14,000 tons of raw sugar in a duty-free quota. Guatemala could be allocated more raw sugar under the TRQ program if Mexico’s production continues to have problems.

Sugar is one of the products traded on commodity markets and exchanges around the world.

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