A lack of sugar supplies is increasing candy companies' costs and hurting confectionery production, reports The Wall Street Journal and the Specialty Food Association (SFA). 

Candy producers say that a U.S. agriculture policy that requires 85% of sugar to come from domestic producers is to blame - supplies are tightening as demand is rising because producers do not have other sourcing options. 

Sugar farmers and processors, however, are applauding the policy for protecting farmers' businesses while also allowing for a sufficient supply of sugar.

Spangler Candy (Bryan, OH) produces about 250 million candy canes per year. In the past year, though, supplier cutbacks to sugar threatened the company's supply chain. Because of that, Spangler turned down Halloween candy order it couldn't fill, and by June 2022, the company realized it wouldn't be able to make up the loss in time for Christmas. Instead, the company produced about 200 million candy canes for 2022.

Candy Industry's 2023 Kettle Award recipient Kirk Vashaw, Spangler, is quoted in the article, saying:

“It is so much more expensive to manufacture candy in the United States, and sometimes we lose business because of it,” he says.

To lessen the blow, Spangler, which uses around 30 million pounds of sugar per year, tries to anticipate the supply shortage timing and schedule its production line maintenance in its factory during those times. The brand also moved some of its production to a Mexico facility, where Vashaw says they haven’t had any sugar issues. 

“Once we lose time, you can’t go back and get it,” he notes.

Read the full article at WSJ here (subscription required) and the abridged free SFA article here.