Saturday, January 31, 2009

An odd sugar situation

Guyana produces sugar, but their sugar harvest is a little short right now. Almost all the sugar Guyana produces this year is already set to be exported abroad at favorable prices to Europe and the Carribean. But that won't leave any sugar for Guyana to consume! Their answer is to import about 14 tons of sugar from Guatemala. Even with the transportation costs, this appears to be a good deal for Guyana (or else they wouldn't be doing it, right?) So, doesn't that mean that Guatemala can undersell Guyana in sugar by a significant amount? If I were some of those Carribean buyers, I think I would be looking at Guatemala as a source for sugar next year.

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