The price of sugar fell from 39 shillings per cwt in 1838 to 26 shillings per cwt in 1854. Several factors contributed to the decline, including the abolition of slavery, the rise of beet sugar production in Europe, and competition from other sugar-producing regions such as Cuba.
Increase in Production Costs
The cost of producing sugar increased during this period for several reasons. The abolition of slavery led to higher wages for free labor, the cost of transportation increased, and the cost of capital goods such as machinery and equipment rose.
Natural Disasters
Several natural disasters also occurred that damaged crops and disrupted production, including hurricanes, droughts, and floods.
Diseases
Several diseases, such as cholera, yellow fever, and malaria, also affected the labor force and disrupted production.
Social unrest
Social unrest, such as riots and labor unrest, also occurred, disrupting production and damaging property.
Competition from other agricultural sectors
Other agricultural sectors, such as coffee and cotton, became more profitable during this time. This led to some landowners switching to these crops, reducing the amount of land dedicated to sugar production.