SIC 2063 Beet Sugar

Contenidos

• NAICS CODE(S).
• FURTHER READING.

SIC 2063

This entry includes establishments primarily engaged in manufacturing sugar from sugar beets.

NAICS CODE(S)

311313

Beet Sugar Manufacturing

Sugar beets are one of the world's main sugar sources and an important source of sugar for the United States—more than 1.3 million acres of sugar beets are grown in 12 states. Reduced raw cane sugar imports hurt U.S. refiners in the 1980s, and the sugar industry turned to sugar beets to make up the difference. The United States processes more sugar from domestically-grown sugar beets than from domestically-grown sugar cane. Many cane refiners also invested in sugar beet processing firms in the 1980s as the sugar beet market share (including imports) climbed from 30 percent in the 1970s to 40 percent in 1988.

However, the sugar beet market felt the effects of plummeting per capita sugar consumption (both beet and cane) from 1970, when it stood at roughly 102 pounds, to 1980, when it stood at about 60 pounds. By 2002 it had fallen to 45 pounds. The corn sweetener market has claimed much of sugar's old market share. The value of refined beet sugar shipments declined from $2.61 billion in 1997 to $2.49 billion in 2001.

Falling domestic consumption cost the U.S. sugar industry approximately $250 billion in 2001 alone. Between 1999 and 2003, domestic sugar sales fell from 10.11 million short tons in 1999 to 9.67 million short tons. As a result, production began to wane as well. Sugar beet acres planted fell from 1.42 million in 2001 to 1.36 million in 2002; acres harvested declined from 1.36 million to 1.33 million over the same time period.

The beet sugar industry traces its origins to ancient Babylon, Egypt, and Greece, where sugar beets were grown. In 1744, a German chemist discovered that sugar from sugar beets was the same as sugar from sugar cane. About 50 years later, another German chemist developed a method for extracting sugar from the beets. Sugar mills were soon built in Europe and Russia. In 1838, sugar beets were being processed in the United States as well. The first successful commercial beet sugar mill was built in Alvarado, California, by American businessman E.H. Dyer.

Unlike sugarcane, which is processed into raw sugar (see SIC 2061: Cane Sugar, except Refining) to be marketed to cane refiners (see SIC 2062: Cane Sugar Refining), beets are processed directly into refined sugar. Beet sugar is produced from the root of the sugar beet plant...