FOR IMMEDIATE RELEASE                                    CONTACT:   Phillip Hayes
Monday, August 3, 2009                                                                 435-604-3113

PARK CITY, Utah—Anticipating an announcement about sugar supplies in the U.S., sugar producers and industrial sugar users today listened intently to U.S. Department of Agriculture Under Secretary Jim Miller at the 26th International Sweetener Symposium.

“I am not making an announcement concerning the [Tariff Rate Quota] today,” he said of the Department’s decision about whether to allow additional sugar imports into the market.

Large candy companies have engaged in a months long lobbying campaign to pressure the USDA to increase the TRQ in hopes of boosting their profits.  Sugar producers have countered by pointing to stable sugar prices and surplus raw sugar supplies as evidence that the market has enough sugar and no TRQ increase is necessary.

Miller explained that the USDA is still reviewing the situation, and he would not rule out a TRQ increase at a later date.  U.S. sugar producers applauded this cautious approach given the potential taxpayer cost associated with a TRQ increase and the tremendous uncertainty overhanging the market as a result of unpredictable sugar supplies coming in from Mexico.

A loophole in NAFTA allows Mexico to send the sugar it grows to America and then import cheaper, subsidized sugar from other countries to meet its domestic needs.  Miller admits this loophole and subpar market information available in Mexico has been a challenge to the USDA.

A meeting between USDA officials and their counterparts in Mexico is planned this fall to discuss data collection problems, Miller told the group.

He also addressed other domestic and international policies that affect the U.S. sugar industry.  On trade, the Under Secretary said, “The real problem we have in sugar is a global market that’s distorted,” noting that fair trade is a priority of the new Administration.

Miller also discussed implementation of the 2008 Farm Bill, saying he “feels very good about what we did,” referring to the recently implemented provision to provide sugar producers their first loan rate increase since 1985.  In addition, he said he was an “advocate” for the Farm Bill provision that will enable the USDA to turn unneeded surplus sugar into ethanol.  This provision has not yet been implemented.

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