Flender/Flender Gear Units/Helical gear boxes H4
ion and Outlook Report (December, The FOB Caribbean prices have continued to decline during 1, until arriving at level of

US 1.8 cents/lb. in the month of March. It appears that high production combined with excess stocks and decline in

import demand have contributed to the recent downward pressure on world prices. Conditions in the world market, however, create uncertainty

as to the future direction of world sugar prices in market that has been erratic in the past. II- 6

WORLD RAW SUGAR PRICES Cents per pound 4 4 3 3 2 2 H9 1 1 1 la5 le 1 1 8 1 1 9 1/Contract No. 1, ... stowed Caribbean ports. Source: Coffee, Sugar, &Cocoa Exchange, Inc. The decreasing .. quota allocation will result in an increase in sugar sold in the world market * Potential increases in production may increase the percentage of sugar sold in the world market. If all other variables were held constant, the above events would probably increase the risk to producers operating in the Nicaragua sugar industry. Recovery of domestic consumption, negotiation of an increase in the domestic price, and higher and less volatile prices in the world market are factors that wolld decrease ri. in the Nicaragua sugar industry. . Consumer Price The price of sugar at the point of sale to distribution agencies (middlemen) is also regulated by the Ministry of Economy and Development (see Appendix ). The prices shown in Appendix are established for 1 lb bags traditionally used by Nicaraguan producers. The distribution agencies, supermarkets, and others in the distribution chain customarily repackage sugar in smaller containers and are free to mark up prices. The price of sugar to the final consumer is not regulated in Nicaragua. Certain producers (San Antonio and Julio Buitrago) plan on packaging sugar in 5 lb bags to reduce middlemen markups and to increase consumer identification and preference for their product. Currently, no separate price has been establi