CROCKETT -- The stout old factory rises up from the
Carquinez shoreline, keeping stubborn watch over one of the
East Bay's sleepiest towns. The C&H sugar refinery stands
as a paean to America's undying sweet tooth.
Behind its red brick walls, the century-old building pumps
out 3,000 tons of sugar a day. One-ton "supersacks"
settle in for a journey to the soft cores of sweet Jelly Belly
jellybeans. Liquid sugar rolls off by the truckload. Sugar
cubes line up, waiting for a cup of coffee.
What is missing, amid the musky hint of molasses is a
bustle of humanity. The only cane sugar refinery on the West
Coast now employs 500 men and women over three shifts,
compared to 1,800 at its modern peak.
Such factories, once economic engines of towns like
Crockett, keep scaling back or closing. Of the 22 U.S. cane
refineries operating in 1981, 10 remain. Earlier this year,
the nation's largest refiner, Imperial Sugar, filed for
bankruptcy.
The trouble is not with America's taste for sugar, which
grows steadily. Instead, C&H and others argue, it is with
the federal sugar program, a set of import quotas and loan
programs designed to protect sugar farmers from foreign
competition.
The current program, most everyone agrees, has soured.
Last year, a glut forced the federal government to swallow
loads of forfeited sugar in lieu of crop-loan payments. The
government now spends about $1.4 million a month to store
nearly 800,000 tons of sugar, about four-fifths of what
California consumes in a year.
Meanwhile, refiners have been sandwiched between the high
cost of raw sugar and depressed prices for their refined
product.
"It's become very clear that this is a threat to the
workers," said Rep. George Miller, D-Martinez. "I
wouldn't say it's going to happen tomorrow or six months from
now. But they're getting hit now with high energy prices and
high raw sugar prices. That's a reason to be concerned."
Next week, Miller and Rep. Dan Miller, R-Florida, plan to
introduce a bill to phase out the federal sugar program over
three years.
The issue pits refiners and confectioners who bemoan the
program, against growers and unions who claim the U.S. sugar
industry would collapse without it.
"This whole industry's on its ear. I'm sympathetic to
(the refiners') plight, but without the sugar program we would
be gone," said Ben Goodwin, executive manager of the
California Beet Growers Association.
Sugar beet acreage in California has dwindled from about
250,000 acres a decade ago to just over 50,000 acres now.
"Without the program, there wouldn't be a sugar beet
industry in California, and there probably wouldn't be much of
a sugar beet industry in the United States," he said.
Refiners like C&H have struggled on and off since the
early 1980s, when Coke and Pepsi switched to high-fructose
corn syrup, killing off some refineries.
C&H CEO David Koncelik said the sugar program has cost
about 400 company jobs over the past decade. In 1996, the
company laid off about 240 workers, or 30 percent of its
workforce. New technology has made some of those losses
permanent.
In Washington, efforts to do away with the sugar program
have become an annual practice in futility for critics of a
policy dating back to the New Deal. Lately, though, they may
be gaining new momentum.
Last year was the first time taxpayers footed a direct bill
-- more than $400 million -- to support the price of sugar.
The federal General Accounting Office, meanwhile, estimated
the price supports cost American consumers about $1.9 billion.
Chicago Mayor Richard Daley has begun to attack the program,
fearing the loss of jobs when candy manufacturers flee to
other countries.
On the other side of the equation, President Bush won
strong voter support from states with heavy agriculture.
With wholesale sugar prices at a 22-year low, sugar
producers are pulling for a stronger sugar program that would
police imports and give the USDA more control over domestic
production.
Sugar producers blame some of the glut on a jump in imports
from Mexico, minimum imports required under international
trade agreements, and on sugar "dumping" into the
U.S. market. Those factors, along with three years of good
weather leading to bumper crops, has produced a nation awash
in sugar.
U.S. producers claim they cannot compete in a world sugar
market subsidized by countries with lax environmental and
labor standards. Sugar costs about half as much outside U.S.
borders.
"It's an embarrassing time for them to bring it up
because our prices are already so low, and we're hurting so
badly," said Jack Roney, head of the American Sugar
Alliance, a lobbying group for producers. "All they can
do is kick us while we're down. What we need to do is get
control over this market."
Opponents of the sugar program argue it has seeded a
"corporate welfare" system benefiting a few big
growers, and overproduction in environmentally sensitive areas
such as the Florida Everglades. Import quotas, they say,
undercut free trade, hampering America's efforts to free up
international agricultural markets.
"You can't enter negotiations with clean hands,"
said Rep. Dan Miller. "It's one of the few products we're
having to defend and protect."
Currently, America grows about 85 percent of its sugar
domestically, split between sugar beets and cane. Sugar beets
are grown largely around Michigan, Minnesota, North Dakota,
Nebraska and Pacific states. Cane grows mostly in Florida,
Louisiana, Texas and Hawaii.
Supporters of an overhaul say their best chance comes every
five or six years, when Congress takes up the farm bill. That
may come this fall, but more likely next year.
By all accounts, they face an uphill battle. In the 2000
election cycle, sugar producers gave more than $3 million to
federal candidates.
"Don't ever underestimate the farm lobby
fraternity," said Rep. George Miller. "When you're
talking about (the program) to members of Congress, the
reaction is, 'This is crazy.' When it comes time to vote, it's
not exactly the same reaction."
The sugar program also finds support among labor.
"Thousands of jobs would be eliminated in this country
and we'd be importing from many countries where you get sugar
that's produced by child labor or exploited labor," said
Lindsay McLaughlin, legislative director for the International
Longshore & Warehouse Union.
"You've got thousands of minority workers making well
above the average wage. These are not stoop-labor jobs.
They're good jobs."
The union represents 1,100 sugar workers in Hawaii -- down
from 5,000 in 1996 -- and about 100 workers at the Crockett
refinery.
In recent years, sugar cane farming in Hawaii has spiraled
downward, from 1 million tons of raw sugar per year to 300,000
tons. C&H, which started as a co-op of Hawaiian farmers in
1905, relies more and more on sugar imports.
Opponents of the sugar program agree that a phase-out would
spell a drop in sugar farming, and job losses. To them, the
alternative is worse.
"The road we're going down now is overproduction and
huge costs, buying sugar and no way to get rid of it. At some
stage people are going to say, 'Why are we giving out
million-dollar checks," said Rep. Dan Miller. "I'm
just not sure this is the year." |