It seems a rite of passage as reliable as April 15th being tax day: candy companies cry foul on Capitol Hill, claim poverty, and say U.S. sugar policy should be weakened.  This, they say, will lower costs and increase profits.

And like clockwork, the argument seems to intensify just before discussion of the next Farm Bill.

This is never a valid argument, but there’s one added problem this time around.  Food companies have always done well and are still raking in the profits despite the recession most Americans have dealt with the last two-plus years.

Peter Liebhold, chairman of the Smithsonian Institution’s work and industry division, told The New York Times “Candy companies are relatively recession proof.”

And the numbers back up his claim. Through mid-July, candy makers weren’t struggling, but rather thriving.

• Despite the summertime heat, summer confectionary sales were up 4.7% over 2009 (as of July 11th).
• For the second quarter of the year, chocolate candy sales were up 7.1%.
• Nestle’s net profit for the first half of 2010 was $5.2 billion, up a whopping 8% over 2009.
• Kraft’s snack food division operating income was up $35 million and 17% over the first half of 2010.
• And General Mills earnings jumped 17% for fiscal year 2010.

In fact, none of this is new – in 2009, the National Confectioners Association released a study that reported sales of $935 million and a 35% profit margin. Just let that sink in for a second: 35%.

Tough times have never looked more profitable.

When writing the new Farm Bill, lawmakers may ask themselves, “Why change anything if sugar producers are happy, taxpayers aren’t spending a dime, and industrial sugar users are making more money than ever?”

Good question.

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