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This Patrick's Day: No Luck of the Irish for U.S. Sugar Producers, Consumers

American Sugar Alliance
March 17, 2000
 

WASHINGTON, March 17 /PRNewswire/ -- Sugarbeet farmers like Everett Gabel of Montana are happy to celebrate St. Patrick's Day today, but they are not feeling much of the luck of the Irish. And neither are American sugar consumers.

``The price we receive for our refined beet sugar has dropped nearly a fourth just since last summer,'' said Gabel, who farms 240 acres of sugarbeets near Billings. ``Prices this low are a terrible financial blow to me and my family. It would be some consolation to us if this low producer price meant lower sugar and sweetened product prices at the grocery store, but it does not.''

Through February, producer prices for both raw cane and refined beet sugar have fallen 23% in the past 3-1/2 years, since the start of the 1996 Farm Bill, but grocery store prices for sugar have not dropped at all. Retail refined sugar prices are the same as in October 1996, and prices for highly sweetened products such as cereal, cookies and cakes, candy, and ice cream have risen by 6-10 percent, according to government statistics released today.

``If these low producer prices persist, my livelihood, my neighbors', and the livelihoods of sugar growers, processors, and workers in 16 states are all threatened,'' Gabel said. Sugarbeets are grown in 12 states and sugarcane in four.

``What galls me is that the food manufacturers and retailers who have lobbied in Washington for these lower prices are now increasing their profits at our expense,'' Gabel said. ``It's clear these corporations are passing none of their savings on cheaper sugar along to consumers. Not in the price of a bag of sugar on the grocery store shelf. Not in the price of a box of cereal or a bag of cookies. Not in the price of a candy bar or a container of ice cream.''

``And these same companies argued in Washington that lower producer prices for sugar would benefit consumers,'' added Pamela Gabel, Everett's wife. ``What a bunch of blarney.''

``The food manufacturers and retailers may be dancing a jig all the way to bank this week, with their increased profits at farmers' expense, but we're not,'' she said. ``We're fighting to survive terribly low prices for sugarbeets and all the other crops we grow.''

The Gabels are members of the American Sugarbeet Growers Association (ASGA), representing 12,000 farmers in 12 states. The ASGA, based in Washington, D.C, participates in the American Sugar Alliance, a national coalition of farmers, processors, and refiners of sugarbeets, sugarcane, and corn for sweetener. (For more information about the American Sugar Alliance, visit www.sugaralliance.org).