Sugar industry is vital part of U.S. security..

Merrill Weinheimer

Guest Opinion: Merrill Weinheimer
Sugar industry is vital part of U.S. security
Originally posted on September 13, 2006

Either Ray Judah shows a serious lack of understanding about the world sugar market and basic economics with his remarks and conclusions ("Sugar industry receives benefits on public dime" Sept. 9) or he is purposely misleading his readers with an agenda to harm "Big Sugar." The premise that Big Sugar is receiving benefits on the public dime is reached in the article while overlooking the primary reasons why the benefits exist. To understand domestic sugar policy one must consider the world sugar market and its implications.

Mr. Judah must not know that the current and historical open market price for sugar on the world market is below the cost of production in the prospective exporting country's domestic market. That's right, every sugar producing country which attempts to export is trying to sell its excess sugar for less than it cost them to make it. Why would they do that? Because the world supply of sugar is greater than the demand. Most countries throughout the world protect their own sugar industry because they fear a world conflict or disaster would disrupt their own supply.

Sugar is one of the basic ingredients in the majority of the prepared foods that we eat. There is sugar in bread, in the cereals we eat, in baked goods and soft drinks of all kinds. For this reason, policy makers throughout the world have willfully chosen to protect the domestic production of sugar. Essential food

What would happen if the United States chose to permanently end every form of industry support for the sugar industry. No one knows exactly what would happen or how quickly, but most experts agree that a large amount of land presently committed to the production of sugar cane or beets in the United States would no longer be planted with these crops. We would begin to import sugar at low prices and a temporary savings could be realized. As the excess production capacity is removed from the world market, the exporting countries oversupply will be reduced or eliminated. Prices on the world market will rise to market clearing levels which is higher than the price paid for domestic sugar produced presently by Big Sugar. That is right! If we chose to force Big Sugar out of business, over time we will become dependent on imported sugar, just like imported oil, and the exporting countries will set prices above what they are right now. Then when we are faced with a natural disaster or war we will be forced to pay outrageous prices for sugar because sugar growers in the United States can no longer supply our own demand. The choice of whether to require domestic sugar to be purchased at profitable levels before imported sugar is imported at market dumping prices is not a choice to support Big Sugar. It is an investment in the security of our country! We do not want to be dependent on Cuba, Mexico or Brazil for our sugar supply. Maintaining a strong sugar industry in the United States is not welfare for big business, it is securing a national supply to feed our people in the event of disaster. It is also common sense economics. Choosing to buy dumped sugar and thinking the bargain price will remain at that price over time is plain foolish. The thought of Mahmoud Ahmadinejad and Fidel Castro laughing all the way to the bank is a slap in the face to the pride and ability of the working men and women of the United States.

Iran now laughs at us and treats us with contempt as they blatantly work to acquire nuclear weaponry. Clearly Mahmoud Ahmadinejad wants to exterminate Israel for he has said so and would like to do the same to the USA. Iran can thumb their nose at us because they hold power as a major oil exporter. Becoming dependent on imported sugar would create nation states with that same power, Cuba becoming one of the first to benefit. Clear choice

The choices we have regarding sugar policy are more accurately framed as:

1. If you want to pay more for sugar and risk our nation's food supply, then stop investing in the security of our nation's sugar.


2. If you wish to secure our nation's food supply and remain independent of rogue states' blackmail prices for imported sugar, then craft a policy that allows domestic sugar to remain viable. There are other factors that affect the sugar industry and what choices should be made with regard to our policies that are not included in this discussion. For example: Corn production and the use of corn syrup as a sugar alternative uses the production of ethanol as a cover to subsidize corn syrup production and undercut the domestic sugar price.

U.S. sugar growers are the most efficient in the world and have been employing many working families for decades. Entire communities in South Florida, Louisiana, Mississippi and Hawaii depend on these good jobs to support their families. Do not allow the sugar industry to be mischaracterized for what it is not. Big Sugar deserves to be considered for what it is, a great employer and a valuable food supplier. Ray Judah should retract his article because it is simply misleading and inaccurate.

— Merrill Weinheimer lived in Clewiston for his first 21 years. His father worked for U.S. Sugar Corp. for almost 30 years. He now lives in Utah.