Organic food prices could soar as US imposes import restrictions and new
tariffs on specialty sugar
[September 19, 2025] By
SARAH RAZA
SIOUX FALLS, S.D. (AP) — The price of most organic food could jump this
fall because of new policies and tariffs on imported organic sugar,
frustrating manufacturers who say the actions won't help sugar growers
but could put some food companies out of business.
More than 90% of organic sugar used by U.S. manufacturers is imported.
The price of that product increased in August when the Trump
administration imposed steep trade tariffs, and will rise even more when
high-tier duties on most organic sugar imports take effect Oct. 1.
The result, according to the Organic Trade Association, is that the
price of organic sugar is expected to soar by an average of 30%,
increasing costs of producing most organic foods — everything from
yogurt to cookies.
Each year, the U.S. imports 1,825 tons (1,656 metric tons) of specialty
sugar because it is required under a World Trade Organization agreement.
But demand for organic sugar far exceeds that amount, so the U.S.
Department of Agriculture sets an annual quota for the amount of
specialty sugar that can be imported into the U.S. duty-free.
Last year, the quota was 231,485 tons (210,000 metric tons), which still
wasn’t enough to meet demand. This year, the USDA’s quota taking effect
Oct. 1 will be zero, and all organic sugar imports beyond the WTO
minimum will be hit with high out-of-quota duties.
The U.S. Department of Agriculture has said its restrictions on
specialty sugar imports are intended to help the U.S. sugar industry.
In response to questions about its new policy, the USDA released a
statement saying that "the decision was not made to benefit any single
entity," and it would continue to monitor market conditions.

Specialty sugar policy could lead to higher prices
The limits on duty-free imports of specialty sugar plus a new 50% tariff
on Brazil, which supplies 40% of the U.S.' organic sugar, is especially
difficult because organic products are already more expensive than their
conventional counterparts. Growers must meet more requirements to be
certified organic, such as restrictions on pesticides and fertilizers.
U.S. manufacturers say that buying domestic organic sugar isn’t an
option because there is only one U.S. farm that produces the specialty
crop, and converting a conventional farm to organic takes at least three
years.
They warn the combined effect of the tariff and import caps may force
them either to raise prices or curb production.
“It’s essentially punishing domestic manufacturers for using an
ingredient that we really can’t obtain domestically, and don’t have any
prospects of obtaining domestically any time in the near future,” said
Britt Lundgren, who oversees government affairs for organic yogurt maker
Stonyfield.
Tom Chapman, co-CEO of the Organic Trade Association, said he expects
“dramatic impacts.”
“The high tier tariff is so high that we don't see that it's an
absorbable rate of tariff, in addition to all the other tariffs that
would apply,” Chapman said.
Organic food manufacturers will buy most of the imported organic sugar,
though some will be offered on grocery shelves, where home bakers likely
will see increased prices.

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All different kinds of organic sugars are displayed on shelves at a
grocery store in Deerfield, Ill., Wednesday, Sept. 17, 2025. (AP
Photo/Nam Y. Huh)
 U.S. not producing enough organic
sugar to meet demand
Demand for organic sugar had already been outpacing imports for the
past several years. But that situation did not spur any new domestic
producers, organic food manufacturers said.
In addition to limited production, the U.S. also has limited organic
sugar processing because ingredients that are certified organic must
be segregated from conventional ingredients when processed.
Whole Earth Brands, a company that sells a variety of sweeteners, is
anticipating a 100% increase in organic sugar costs, according to
company president Nigel Willerton.
“We supply every major supermarket in the U.S. and natural food
stores. We’ll see our prices go up quite considerably. There’s
nothing we can avoid there," he said.
How much prices will change depends on how much sugar is used in the
product. For example, sweeteners that are made almost entirely from
organic sugar are likely to see bigger price increases than dairy
products, where organic sugar is not the main ingredient.
Higher sugar costs may lead some businesses to shut down
Many organic food manufacturers are smaller operations, so they are
more sensitive to increases in input costs, Willerton said. Some of
them may not have the profit margins to absorb the cost, and they
are unable to replace organic sugar substitutes because it would
require product reformulation.
“We’ve got lots of small companies involved in this business,”
Willerton said. “These small premium companies producing these
products are literally going to find themselves priced out of the
market.”
The U.S. government has long had a prominent role in sugar
production, with policies for setting minimum prices and generous
loan programs.
Still, Chapman said he doesn't understand what the USDA is trying to
accomplish with its restrictions.
“When we looked at the USDA announcements, they were talking about
domestic sugar shrinking and mills closing," he said. "There’s only
one mill. They were in operation before, and they’re in operation
now.”

Florida Crystals Corporation, the only organic sugar producer in the
U.S., supplies 8% of the U.S. organic sugar market, up from about 2%
a decade ago.
Marianne Martinez, the company's spokesperson, said the USDA’s new
specialty sugar policy "is encouraging and could result in an
increase in U.S.-grown and milled organic cane sugar production if
it becomes a long-term policy.”
The USDA has not announced any other initiatives to support organic
growers in the meantime.
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