Economic Surpluses in the U.S. Sugar Market

Abstract

The objective of this article is to estimate historical economic surpluses for the subsectors involved in the U.S. sugar market. Annual producer and consumer surpluses were computed based on a five-equation model and 1958–87 data. In the last decade, the welfare position of cane- and beet-sugar producers has been roughly maintained, the domestic consumer surplus and the export quasi-rents to foreign countries have both declined, and quasi-rents of the corn-sweetener industry now surpass those that accrue to the cane industry and are about the same as those of the beet-sugar industry. Some policy implications are discussed.