SUN VALLEY, Idaho, Aug. 6 /PRNewswire/ -- Rep.
Charles Stenholm (TX), the ranking Democrat on the House
Agriculture Committee, told participants at the annual
International Sweetener Symposium here today that food
companies that push for lower prices for farmers or for ending
the sugar program as ``savings'' to consumers are ``reflecting
self-promotion at its worst.''
Stenholm obviously referred to the fact that savings in
lower commodity prices are virtually never passed on to
consumers by the food, candy and beverage manufacturers. For
instance, the American Sugar Alliance, which hosts the
Symposium, has reported that while wholesale refined sugar
prices have dropped almost 30 percent since 1996, products
using high amounts of sweeteners have risen during the period
from 4 to 14 percent. Even grocery stores have failed to pass
the savings in wholesale sugar prices along to consumers in
the price of sugar on the store shelf.
Stenholm said, ``We need to get more of the consumers'
dollars into the producers' pockets,'' rather than having the
benefit of lower commodity prices going to the bottom line of
the food processors.
He said the manufacturers have got to realize ``that it's
not in your best interest'' to always be pushing for lower
prices being paid to farmers.
With Congress wrestling with a new all-inclusive Farm Bill,
Stenholm laid out the timetable he sees for passing a 10-year
omnibus package that covers all farm programs, plus many of
the nation's nutritional programs such as Food Stamps.
The 51-member House Agriculture Committee has already
passed its version of the Farm Bill, and Stenholm said he
expects a full House vote on the bill (H.R. 2646) in early
September. By October he said he thought the Senate would pass
its version. The conference committee, to work out the
differences between the two, ``will probably go right up to
December 24.'' But he said he does expect a Farm Bill to be
passed this year.
He complimented the sugar industry for coming to the House
Agriculture Committee with a proposal -- inventory management,
or limiting marketing in times of surplus -- that is designed
to operate U.S. sugar policy at no cost. Stenholm said the
idea of inventory management ``for right now is the best idea
and we'll fight very hard for it in the Farm Bill.''
Stenholm recognized that inventory management will work
only if the nation's borders are protected from violation of
the tariff rate quota. In that context, he said the tariff
rate circumvention scheme known as stuffed molasses, a syrup
concoction coming in mainly from Canada, is an example ``of
breaking the rules.'' He also said that trade problems with
Mexico over sugar must be resolved.
Also on trade, Stenholm said he is in favor of TPA, or
trade promotion authority for the President in negotiating
trade agreements that must be voted on by the Congress without
amendments, but only if agricultural leaders like himself and
House Agriculture Committee Chairman Larry Combest (R-TX) have
a say in the negotiation process.
The American Sugar Alliance is a national coalition of
growers, processors and refiners of sugarbeets, sugarcane and
corn for sweetener.
For more information about U.S. sugar policy visit American
Sugar Alliance at http://www.sugaralliance.org
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