Saturday, February 20, 2010

Looming Sugar Crisis... What now?

This is bad news for the people with sweet tooth. I guess?

The world is suffering from acute sugar production with recent droughts brought about by the El NiÑo phenomenon plus the high demand during the past holiday season as a main ingredient for most food manufacturing companies and at the same time for renewable energy in which ethanol comes from.

Brazil is a major player in sugar production, cultivation and agriculture with its far reaching domination of this industry compared to our country's sugar production which had lagged down since the 1970s based on one study done in the 20th century. The Philippines was major exporter of sugar in the past to United States and Europe however the prices of this commodities went down in the late 1980s in which it became a junk market for this product. Brazil has become the top 1 producers of ethanol and ethanol-based fuel for their power generating facilities in their country during dry months wherein ethanol is a by product of sugar canes. There are at least 100 sugar producing countries all over the world. The top producers include Brazil, India, Pakistan, USA and others.

In the laws of supply and demand as I remember my introduction to economics class pertains that once the supply is low and demand is large, the prices are high. Anyways, even if we have the bad news of acute sugar production for now we can certainly lessen our consumption of sugar and this would be also good for the health and lifestyle with the prevention of diabetes, obesity, tooth decay and other illnesses which are related to overconsumption of sweets.

Sugar Futures Open Trading is a bit tricky in many and it involves substantial risk and is not recommended for all investors with faint hearts and shallow pockets.

Tapping in Global Market is one thing we can learn soon.

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