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While many of us enjoy a bite of Halloween candy with our mouths politely closed, the makers of those sweet treats somehow managed to speak out of both sides of theirs this holiday. Mega confectioners—representing one of the most profitable businesses in the country right now—spent Halloween trying to scare lawmakers on Capitol Hill into believing Louisiana sugar farmers were causing them economic distress.  High sugar prices, they claimed, are making times tough. Things are so dire that extreme legislation is the only remedy, even though it would likely bankrupt the state’s 200-year-old sugar industry in favor of cheap, subsidized sugar imports.
Meanwhile, investors on Wall Street heard a much different tune—one of big confectioners being treated with big profits. So what’s the truth? According to data just released by the candy industry’s lobbying arm, the National Confectioners Association (NCA), there’s been far more treat than trick this year for candy makers. Americans just spent an eye-popping $2.3 billion on Halloween candy, the NCA reported, or $7.36 per person. Despite the down economy, sales were way up from 2010, which was already one of the most lucrative Halloweens in history. “We’re not recession-proof, but we are recession resistant,” the NCA is fond of telling audiences located outside the Capital Beltway. That certainly explains Hershey boasting a 9 percent increase in third-quarter profits just days before All Hallow’s Eve. Success isn’t isolated to Hershey, either. Kraft Foods, the biggest industrial sugar buyer in the country, announced a 22 percent jump in quarterly profit last week. Mars just broke ground on a new plant in Kansas, which will add 200 jobs. And Spangler Candy—maker of the iconic Dum Dum sucker—recently announced the addition of 20-30 people to keep pace with demand. In fact, the U.S. Census Bureau found that U.S. candy production has grown 2.5 percent since 2008. Such growth since 2008 is significant because that was the year Congress passed the current sugar policy and began to seek ways to deal with the nation's troubled economy. In other words, candy companies have shrugged off a recession that’s crippled most others and has actually grown since Congress passed a no-cost policy to help promote domestic sugar production. Hardly sounds like a tale of economic woe, even though the NCA is spending big dollars to convince legislators of their "plight." Lest NCA’s team of lobbyists and glossy advertisements make inroads with elected leaders, let’s do some simple math to shed light on the debate. Sugar accounts for about 3 percent of the consumer price of candy. So, of the $7.36 each person spent on candy this Halloween, a paltry 22 cents went to sugar producers. That’s not 22 cents in profit either. Those two dimes go to cover Louisiana farming operations that grow and harvest sugar cane; the mill that turns farmers’ cane into raw sugar; the refinery that transforms raw sugar into table sugar; and finally, packaging and shipping the product to candy companies across the country. It’s pretty obvious who's making the money on America’s sweet tooth. The definition of a sound public policy is one under which all parties can thrive. Considering the economic growth among confectioners and the fact that U.S. sugar policy operates without taxpayer cost, it is a shining example of success. Congress, don’t get tricked. If you do and scrap a no-cost policy that works, the thousands of Louisianans employed in our state’s sugar industry could wind up holding the bag.
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About the author: Jim Simon is the general manager of the American Sugar Cane League in Thibodaux.
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