The cost of organic food is poised to rise this fall due to new policies on imported organic sugar. Many manufacturers are concerned that these changes will harm their businesses without helping sugar farmers. A staggering 90% of organic sugar in the U.S. is imported, and prices already spiked in August due to tariffs imposed by the Trump administration. Starting October 1, further duties will push prices up by an estimated 30%, affecting everything from yogurt to cookies.
Each year, the U.S. imports 1,825 tons of specialty sugar under a World Trade Organization agreement. However, with growing demand, the quota for this year will be zero, meaning imports beyond the minimum will face high tariffs. The U.S. Department of Agriculture claims these restrictions aim to support domestic sugar growers but hasn’t provided details on how this will help.
The new regulations include a 50% tariff on Brazil, which is responsible for 40% of the U.S.’s organic sugar supply. This comes at a time when organic products are already more expensive than their conventional counterparts. To be certified organic, farmers must follow stricter guidelines, making it tough to switch from conventional farming.
Manufacturers are voicing alarm. Britt Lundgren from Stonyfield, a major organic yogurt maker, stated, “It’s essentially punishing domestic manufacturers for using an ingredient that we really can’t obtain domestically.” With only one U.S. farm producing organic sugar, switching to local sources isn’t feasible. Tom Chapman, co-CEO of the Organic Trade Association, expects significant impacts from these changes, noting that the level of the tariffs will be hard for manufacturers to absorb.
Due to these rising costs, companies like Whole Earth Brands are predicting a 100% increase in sugar prices. The effect on retail prices will depend on how much sugar is used in products. Items like sweeteners will see steeper hikes compared to dairy products.
Many organic manufacturers are smaller businesses that struggle with rising input costs. They may not survive these changes, as reformulating products without organic sugar would be challenging. Willerton emphasized that many small companies could be priced out of the market.
The USDA’s longstanding influence on sugar production includes setting minimum prices and offering loan programs. However, doubts remain about the effectiveness of the new policies. Chapman expressed confusion over why the USDA is restricting imports when domestic sugar production is already dwindling, with only one mill currently operational. Central to this issue is Florida Crystals Corporation, which has increased its share of the organic sugar market from 2% to 8% in the past decade. A spokesperson for the company noted that the USDA’s new approach could eventually boost U.S. organic sugar production if sustained over time.
In a world where organic food demand continues to grow, these new policies highlight an ongoing tension in agriculture. As costs rise, consumers may face the brunt of this shift, raising questions about the future of organic products in the U.S.
