US sugar cane industry may see revival as Coca-Cola introduces new product

Industry expert at Fox Business said that the Coca-Cola plan to launch a local soda with cane sugar later this year is a welcome blessing for the economy of the small sugar cane in the United States.

The giant drink company announced during its profit report on Tuesday that it plans to launch a new product made of real sugar as soon as this fall amid constant pressure from the Trump administration to ensure the presence of cleaner components in the country.

“If the giant drink company is sugar cane sources from the United States, this may be a welcome news for societies in Florida, Tixas and Louisiana, which produces most of the country’s sugar cane.

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Sugar cane production was widely expanded in Florida, which produces the most sugar cane stories in the United States, after the country stopped importing sugar from Cuba in 1960. Most of them are produced in organic soil along the southeast and southeastern beach of Lake Okeeychobe in South Florida, with the region’s production of about 2.06 million tons of sugar that is not made from 2017 to 2021, and its race 2021 ((Ministry of Agriculture). American).

Louisiana also witnessed the expansion of production. The state specifically witnessed an increase in the area of sugar cane when the competing crop revenues, such as rice and soybeans, decreased, according to the US Department of Agriculture. Each year 2017 to 2021, the country produced 1.782 million tons of non -refined sugar.

Meanwhile, Texas is produced in sugar cane in the lower Rio Grande Valley, which is located at the southern end of the state. Since 2017, the US Department of Agriculture has estimated that the state farmers have been harvesting about 36,100 acres annually, and they produced about 143,000 tons of unacceptable sugar every year.

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But not everyone in an agreement that the Coca-Cola advertisement will make a big difference in this industry.

Aaron Sondaram, Vice president and great stock analyst at CFRA Research, said that it remains to see the amount of reinforcement that this last innovation will bring to sugar producers in these states, given that Coca-Cola only completes the company’s portfolio with a new product, and not replacing any Coca-Cola products.

Mechanical harvester cut sugar cane in Cliorestone, Florida. (Joe Raedle / Getty Images / Getty Images)

In the past few decades, the sugar sugar industry has achieved great success after the country’s highly sweetened corn syrup in the country became due to its low cost, according to LE. In the eighties of the last century, even the giant drink giant Coca-Cola, which was replaced in sugar cane, which came with a high tariff, for high fructose corn drink, which was a cheaper alternative due to corn transplantation.

Nevertheless, the moves to do this immediately impede local and regional communities in Texas, Louisiana and Florida, which depend on the production of sugar cane as a source of income for workers in the region, according to LE.

Dozens of sugar production factories were not limited to their productive capacity, but they are completely closed as a result, according to LE.

Sugar cane is a seasonal plant with a very specific timing for harvesting, which means that production facilities do not remain open throughout the year. Instead, reed production focuses on a limited window during the year when it can be pressed, evaporated and polished.

“Once all the harvesting of the reed is completed, the facilities are left not occupied and the plants no longer need the need for workers, which puts a high economic cost to ensure the completion of production with the greatest possible efficiency.”

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Sugar cane is a seasonal plant with a very specific timing for harvesting. (Luke Sharrtt / Bloomberg via Getty Images / Getty Images)

Many of these sugar cane companies work as cooperatives, and because of the limited growth of the industry, they only have a little incentive to expand sugar cane farms.

If companies are followed in the footsteps of Coca-Cola, “the economic benefit will be enormous for these countries, especially since the areas that produce sugar cane compete with crop lands to obtain low-cost crops, which compete for the international market, such as economic crops,”. Regions.