During debate of the 2002 Farm Bill, opponents of sugar policy were quick to point the finger at sugar when Kraft announced it was moving a Chicago-based candy factory abroad to take advantage of cheaper labor.
Never mind the fact that Levi Strauss, Black and Decker, and scores of other non-food manufacturers were doing the same thing at that time. And never mind the fact that a Kraft spokesperson denied reports that U.S. sugar prices were to blame. Lobbyists for food manufacturers were adamant that U.S. sugar policy was the culprit for relocation.
Fast forward to the 2007 Farm Bill, and these same claims are resurfacing again, with candy lobbyists still harping about the Kraft move five years earlier.
But these claims ring particularly hollow today because many U.S. candy companies have actually announced the expansion of their U.S. facilities.
In a one-week period earlier this month, reports surfaced of major expansion projects for candy factories in Pennsylvania, New Hampshire, and Texas.
On Oct. 14, the newspaper in Pennsylvania’s Lancaster County heaped high praise on Mars Snackfood US for beginning work on a $75 million expansion project to boost the size of its local factory by 15 percent.
The same day, the Concord Monitor reported “A 300,000-square-foot addition to Lindt USA’s national headquarters and [chocolate truffle] production facility is adding 500 jobs to New Hampshire’s economy.”
And just two days earlier a story appeared in the Dallas Business Journal about The Pecan Deluxe Candy Company’s plans to add on to its Texas factory.
“Obviously the candy industry is enjoying some good times,” explained Bruce Hardwicke, a Texas sugar producer. “We’re happy for our customers, but it would be nice if they would shoot straight with staffers on Capitol Hill. Their footprint in the U.S. is growing, not shrinking”
Hardwicke added that sugar prices have been on a steady decline in the United States since the 1980s, which has added to candy companies’ good fortunes.
“Candy manufacturers are paying less for sugar today than they did when Jimmy Carter sat in the Oval Office, and they continue to report huge profits,” he said. “It’s pretty apparent that sugar policy hasn’t been as bad for them as they’d lead some legislators to believe.”
According to a 2006 Department of Commerce study, growth in the country’s sugar-containing product sector has been double that of food companies that don’t use sugar.
Times haven’t been so sweet for sugar producers. Slumping prices and declining profit margins have led to the closure of 53 sugar-producing facilities—more than half of the country’s sugar businesses—since 1985, said Hardwicke.
“That’s why the Farm Bill currently before Congress is so important,” he explained. “This bill provides a safety net to give the country’s remaining sugar producers a fighting chance.”
The House of Representatives passed a bill backed by sugar growers in July. The Senate is expected to vote on their version of the Farm Bill in coming days.
