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A potential shift by Coca-Cola (NYSE:KO) to cane sugar from high-fructose corn syrup after Trump’s latest comments would likely have a negative impact on the U.S. farmers, particularly those growing corn, causing disruption in the sector.
Since corn is used to make high-fructose corn syrup, U.S. corn producers would suffer. Agricultural experts warn that if companies like Coca Cola (NYSE:KO) cease using corn as a sweetener, the demand for the grain might decline significantly. Besides manufacturing jobs being impacted, supply chains would need costly overhauls, and farm incomes—especially for corn growers—would drop.
The Corn Refiners Association added that the move would also lower farm income and boost imports of foreign sugar “all with no nutritional benefit,” according to a report by The Independent.
“The resulting economic shockwave would lead to rural job losses and significant economic consequences to communities across the country,” the association added.
President Donald Trump said in a post on Wednesday that Coca-Cola (NYSE:KO) has agreed to use real cane sugar in its U.S. beverages, following his discussions with the company. Though Coca-Cola (KO) has not officially confirmed that all U.S. beverages will switch to cane sugar.
In other regions, like Mexico, Coca-Cola (KO) already sells Coke manufactured from cane sugar, and some grocery stores in the U.S. sell glass bottles of “Mexican” Coke that contain cane sugar.
Responding to Trump’s comments, Coca-Cola (KO) said, “more details on new innovative offerings within our Coca-Cola product range will be shared soon.”
Experts say that the cost of switching is estimated to exceed $1 billion for the cola-maker due to higher sugar prices and major changes in their supply chain and labeling. The cost differential is already visible—with cane sugar-sweetened Mexican Coke costing significantly more at U.S. retailers than standard Coke made with corn syrup.