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Stuffing the market with sugar

March 27, 2000
 
Trucks in Toronto, Canada load up with molasses, water and sugar, then travel south across the border. They unload in Detroit, Mich., the sugar is spun out, the molasses and water are reloaded into trucks and they head north for another load.

Referred to as stuffed molasses "this sugar circumvent the TRQ (Tariff Rate Quota)," Nebraska Growers Association President Bob Busch said. "This is the biggest immediate problem facing the sugar industry today."

"It is not a white refined sugar, but it is used in the food industry, primarily in cereals," Busch said. "There is the equivalent of about 42,000 acres of sugarbeets being brought in. That is a little more than the Scottsbluff factory produces."

The sugar is brought into the states from Canada, however, the original starting place for the sugar is unknown. "It is problem off the world market," Mitchell sugarbeet producer Randy Hoff said.

With the present oversupply of sugar "it's not right for our local communities and our producers to have to be threatened by unfair trade issues like this," he added. "We go out of business because we have to take some other country's sugar. Count-ries who have no regulatory costs."

When Heartland Sugar began bringing the stuffed molasses in about two years ago, the U.S. Customs let it slip by because it started on a very small scale. As the amount of stuffed molasses crossing the border increased the U.S. Customs ruled the action was circumventing the quota and tried to put a stop to the practice.

Heartland Sugar then filed a lawsuit against the U.S. Customs before a trade judge.

"We are aiming for a legislative way to stop the practice," Busch said. "The courts are going to take several months, we can't stand the bleeding."

"We are presently looking for the right individual (in Congress) to champion the cause," Hoff said.

The bill would include more than just stuffed molasses, it would also include any product that does not show up on the line item of the TRQ. Items that circumvent the quotas and flood the American market.