Marketing and Pricing Puerto Rican Raw Sugar

Excerpts from the report: There were 32 centrals, or raw sugar mills, in operation in Puerto Rico in 1957, owned by 22 firms. These firms process sugarcane produced by more than 17,000 farmers or colonos, and market the raw sugar produced from it. The raw sugar mills receive a share of the sugar produced from processing sugarcane. The colonos may take their sugar and market it themselves; however, most sell it to the mills, which market it. The objective of this study was to provide centrals with a basis for evaluating their practices and selecting the best method of marketing. The study was designed (1) to describe the market for Puerto Rican raw sugar and the economic forces in the market which influence the marketing and pricing practices of Puerto Rican raw sugar mills, (2) to analyze price formation in the raw sugar market and factors influencing the raw sugar price, (3) to examine alternative pricing methods and the use of the spot quotation in the average-price method of selling, and (4) to analyze raw sugar price fluctuations and compare market prices with prices received by Puerto Rican raw sugar mills under particular pricing methods