Hawai'i growers have not gained
| Sugar prices poised to take off |
Advertiser Staff
Hawai'i growers Hawaiian Commercial & Sugar Co. on Maui, and Gay & Robinson on Kaua'i said they haven't benefited from the rise in world sugar prices.
That's because the price paid to sugar producers in the United States is controlled by the government through import quotas.
At today's prices of 22 cents to 23 cents a pound, U.S. sugar prices already are higher than world prices.
World prices would have to exceed U.S. domestic sugar prices before affecting prices HC&S receives, said Steve Holaday, HC&S plant manager.
"It would have to be above the domestic price so it would drive up the domestic price," he said.
U.S. prices spiked early this year to more than 25 cents a pound after the destruction of Gulf Coast sugar crops by Hurricane Katrina, said Alan Kennett, general manager of Gay & Robinson.
However, both Hawai'i sugar producers said they were unable to benefit from that spike because prices quickly declined.
"We were unable to take advantage of the improved" prices, Kennett said.