Trump's Coca-Cola deal may cost US farmers $5 billion

The President of the United States, Donald Trump, has announced that he has reached an agreement with the Coca-Cola Company to use cane sugar instead of corn syrup as a sweetener. However, economists are already predicting that this change will result in financial losses for farmers.

This possibility is discussed in an article by Reuters. 

Why did Trump replace the sweetener in Coca-Cola?

Health Secretary Robert F. Kennedy Jr. and activists from his Make America Healthy Again (MAHA) campaign are pushing for changes to the ingredients used by the food and beverage industries, arguing that the proposed substitutes are healthier.

Interestingly, Coca-Cola already sells drinks made with cane sugar in other markets, notably Mexico, and some U.S. grocery stores sell glass bottles of cane sugar Coca-Cola labeled "Mexican."

Why will farmers encounter problems?

Industry analysts stated that changes to the recipe for the rest of Coca-Cola sold in the United States, as well as other beverages and confectionery, would require significant adjustments to companies' supply chains, as corn syrup and sugar come from different producers. It would also require changes to product labelling and an increase in product costs.

The Corn Growers Association has stated that the complete elimination of corn syrup will cause corn prices to fall to 34 cents per bushel, resulting in a loss of $5.1 billion in farm income.

According to U.S. government data, approximately 400 million bushels of corn are used annually to produce corn syrup for beverages and other food products, representing about 2.5% of U.S. corn production.

As a reminder, earlier, it was reported that Donald Trump underwent a medical examination and was diagnosed with a vein disease. However, the White House reassured journalists that there was no cause for concern.