WASHINGTON, D.C. – Businesses and consumers alike continue to suffer from
government sugar policies that have triggered record-high prices, the American
Bakers Association said today.
New government statistics show that sugar prices in February set an all-time
high, said Robb MacKie, ABA president and CEO. Bakers and consumers were
paying record prices because the government deliberately keeps sugar supplies
tight.
Bakers across the country must purchase sugar to produce their products, just
as consumers buy for home baking use, and these companies are getting squeezed,
Mr. MacKie said.
Sugar is among a handful of commodities that are not permitted to be imported
freely into the United States. Instead, the federal government sets quotas that
restrict the exact number of tons of sugar that 40 different countries are
allowed to supply to the U.S. market. When quotas are set too low, prices
skyrocket as is happening right now, said Cory Martin, ABA senior manager,
government relations.
The solution is an immediate, major increase in the import quota, Mr. Martin
said. USDA should act now to help consumers and small businesses obtain the
sugar they need.
In addition to sugar policys impact on consumers, the U.S. Department of
Commerce has implicated the U.S. sugar program in the loss of thousands of
good-paying domestic manufacturing jobs.
Current sugar policy is anti-consumer, anti-business and anti-jobs, Mr. MacKie
said. Congress should change the policy, but until that happens, the Obama
Administration should do everything it can to minimize the harm to businesses
and consumers. The USDA should immediately increase the import quota for sugar.
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About the American Bakers Association
The American Bakers Association (ABA) is the Washington D.C.-based voice of the
wholesale baking industry. Since 1897, ABA has represented the interests of
bakers before the U.S. Congress, federal agencies, state legislatures &
international regulatory authorities. ABA advocates on behalf of over 200
companies both baking companies and their suppliers. ABA members produce
bread, rolls, crackers, bagels, sweet goods, tortillas and many other wholesome,
nutritious, baked products for Americas families. The baking industry generates
more than $70 billion in economic activity annually and employs close to half a
million highly skilled people.