CHICAGO (AP) - The candy capital of the world is sour about
high U.S. sugar prices.
Concerned that local candy manufacturers are cutting back
and taking jobs abroad, Mayor Richard M. Daley showed up at
North America's largest candy trade show Tuesday with some
not-so-sweet words for Congress about the need for sugar
subsidy reform.
Firing the latest salvo of a fast-intensifying lobbying
campaign, he and executives of Chicago's candy industry said
federal price supports are dealing a serious blow to
businesses that are heavily dependent on sugar.
The Chicago area, which is home to Brach's Confections,
Tootsie Roll Industries and Wm. Wrigley Jr. Co., accounts for
roughly 15 percent of the country's candy work force. But
those jobs are on the decline, falling to about 9,000 from
17,000 a decade ago, with Brach's recently announcing the loss
of 1,100 local jobs.
While sugar growers dispute the reasons, the mayor largely
blames a price-support program that has made American sugar
twice as expensive as world prices.
``We need to remove these obstacles as soon as possible and
allow our companies to compete on a level playing field,''
Daley said at the opening of the All Candy Expo, flanked by
about 20 candy officials at the McCormick Place convention
center.
The Chicago group urged the passage of legislation being
introduced Wednesday by Rep. Dan Miller, R-Fla., that would
phase out sugar price supports by the end of 2004, imposing
import quotas on foreign sugar until then.
``They should be able to pass this,'' Daley said. ``This is
a no-brainer.''
Opponents, who also are gearing up for a sugar showdown as
part of Congress' review of farm laws, say Daley is
misinformed.
The American Sugar Alliance contends that sugar accounts
for only a small percentage of the cost of most candy products
and that candy makers are fudging their facts.
The industry group, comprised of sugar growers, accuses the
manufacturers of using the subsidies issue to deflect
attention from the real reasons for their moves out of the
United States: to find cheaper labor and lower environmental
costs.
``Their effort to try to knock prices down further is an
unabashed effort to improve their profits,'' said Jack Roney,
director of economics and policy analysis for the growers'
group.
Salvatore Ferrara II, president of Chicago-based Ferrara
Pan Candy Co. and chairman of the National Confectioners
Association, which sponsors the candy show, disputed that
notion.
While his company has opened factories in Canada and
Mexico, reducing its Chicago work force to 450 from 800, he
said: ``It's not something we wanted to do. It's something we
were forced to do. ... It's just not fair that our sugar
prices are two to three times what our competitors pay.''
How consumers are affected depends who's talking.
The candy makers say the price supports cost taxpayers $495
million last year and added another $2 billion a year to the
price they pay for sugar and sweetened foods.
The sugar growers say candy companies haven't passed their
savings on to consumers even when the producer price for
refined sugar fell 29 percent from 1996-2000. No sugar
subsidies, they say, would doom troubled beet sugar factories
and the many local economies where they are located.
``U.S. sugar policy is crucial to maintaining reliable
supplies of sugar to food manufacturers'' and for keeping
consumer prices ``reasonable, fair and competitive,'' the
American Sugarbeet Growers Association wrote in a letter to
Daley this week. ``Comparing U.S. sugar prices with foreign
subsidized surplus sugar dumped on a distressed world market
is not a legitimate comparison.'' |