Release Contact: Joseph Terrell
703-351-5055
WASHINGTON -- New government figures reveal that, while the
price American farmers receive for their sugar has been
running at its lowest level in more than two decades, the big
grocers nationwide have jacked up the price they charge
consumers for sugar to a 20-year high.
Recently published data from the U.S. Department of
Agriculture and the Bureau of Labor Statistics show that the
July average retail refined sugar price in the U.S., the price
of sugar on the grocery-store shelf, rose to 44.3 cents per
pound, the first time that price has reached 44 cents since
April 1981.
Meanwhile, the price producers receive for the sugar they
sell to grocers and food manufacturers--the wholesale refined
sugar price--averaged only 20.8 cents per pound in 2000, and
22.0 cents per pound so far this year, the lowest levels since
1979.
Ray VanDriessche, a Bay City, Michigan farmer and president
of the American Sugarbeet Growers Association (ASGA),
commented, "This is really outrageous. Our price is at a
22-year low and farmers are hurting badly. Seventeen of our
sugarbeet and sugarcane processing mills have closed just
since 1996. But consumers have received no benefit. The
grocery chains have not only failed to pass any of their
savings on lower sugar prices along to consumers, but they've
had the nerve to raise prices, and to a 20-year high at
that."
VanDriessche added, "It is also incredibly cynical of
the grocery chains and food manufacturers that they are
backing legislation likely to be voted on by the U.S. House of
Representatives this month, that would drive producer prices
for sugar down another 30 percent. It's obvious why they are
doing so: to increase their profits at the expense of American
sugar farmers and consumers.
"Still," VanDriessche said, "American
consumers are getting a great deal on sugar. U.S. retail sugar
prices are about 20 percent below the developed-country
average and, even with recent rise, have increased only 1-1/2
pennies per pound since 1990."
ASGA represents 12,000 sugarbeet farmers nationwide and
participates in the American Sugar Alliance, the national
coalition of growers, processors, and refiners of sugarbeets,
sugarcane, and corn for sweetener. |