Coca-Cola sweetened with cane sugar could be more expensive; corn farmers worry they'll be hurt by the changes

Soft drink companies use high-fructose corn syrup to
reduce production costs. (Photo by J. Yarema, Unsplash)

If Coca-Cola wants to eliminate high-fructose corn syrup in Coke and replace it with cane sugar, it will need to find cane sugar suppliers outside the U.S. because the country already faces a cane sugar shortage. Since cane sugar is more costly than high-fructose corn syrup, the switch would increase the cost of Coke while simultaneously hurting U.S. corn farmers.

"Each year, America consumes about 12.5 million tons of sugar, but produces only 4 million tons of cane sugar. The rest is made up by imports and sugar sourced from sugar beets," report Patrick Thomas and Laura Cooper for The Wall Street Journal. "The beverage industry relies heavily on high-fructose corn syrup as its sweetener of choice. Each year, more than 7 million tons are produced by mills that grind up corn to make sweeteners and other products."

Due to U.S. sugar production limits, if Coca-Cola shifts to cane sugar on a broader scale, it will have to import sugar "from countries such as Brazil and Mexico — countries that face Trump administration tariffs of 50% and 30%, respectively, on Aug. 1," the Journal reports.

Although the soda giant has agreed to produce some American Coke with cane sugar, the switch will increase its expenses. Ron Sterk, a senior editor at SOSland Publishing, an information provider for the ingredients industry in the U.S., told Reuters, "Food and beverage industries started to use corn syrup in the U.S. in the past because of costs. It is cheaper than sugar."

U.S. corn farmers rely on domestic corn syrup production to drive grain market prices. Reuters reports, "The Corn Refiners Association said the complete elimination of high fructose corn syrup from the U.S. food and beverage supply would cut corn prices by up to $.34 a bushel, resulting in a loss of $5.1 billion in farm revenue."