Sugar daddy analysis - US and Mexico
Why is there a sugar bill?
It originally began as there is Private Political Interest by the Sugar Processors and Candy Companies. Beneficiaries are the sugar processors as an artificial deficit of supply for the domestic consumption is created. The structure of the subsidy avoids scrutiny because the deficit is not shown on fiscal reports as each ends before the period.
There is also an important political argument to mention as from the sugar cane production states, the Florida State voting power has 29 electoral votes and Louisiana has 8 electoral votes2. Florida as a state also switches between political parties as it is a battleground state.
It is interesting to note that for every job saved in the Sugar Industry, you lose 3 in the Candy/Manufacturing Industry, making the whole chain very interlinked and also important for job creation.
Florida interestingly enough now has the Florida Wetlands Protection Program, which is trying to defend natural resources from the run off of these sugar processors1.
There is an impact to the consumers as they are now paying a more expensive product and also an increase in tax.
What lobbying strategies has the sugar industry used to keep the sugar subsidy in place?
The Lobbying strategy has to include both the House of Representatives and the Senate as well. Bills are generated in the house and then passed through the senate and then to other sub-committees, they all check, debate and verify before approval.
The lobbyist has to have a wide strategy to keep everyone in line.
The sugar producers pay the lobbyists as they are the beneficiaries of the subsidies.
We have the theory that the Corn Syrup Industry has to also pay the same lobbyists as the Sugar Bill as corn syrup prices are also high if the sugar price remains high. This ultimately keeps competitiveness between corn syrup versus sugar derivatives, as a product.
How is the federal government helping the industry in light of increased imports from Mexico?
It originally began as there is Private Political Interest by the Sugar Processors and Candy Companies. Beneficiaries are the sugar processors as an artificial deficit of supply for the domestic consumption is created. The structure of the subsidy avoids scrutiny because the deficit is not shown on fiscal reports as each ends before the period.
There is also an important political argument to mention as from the sugar cane production states, the Florida State voting power has 29 electoral votes and Louisiana has 8 electoral votes2. Florida as a state also switches between political parties as it is a battleground state.
It is interesting to note that for every job saved in the Sugar Industry, you lose 3 in the Candy/Manufacturing Industry, making the whole chain very interlinked and also important for job creation.
Florida interestingly enough now has the Florida Wetlands Protection Program, which is trying to defend natural resources from the run off of these sugar processors1.
There is an impact to the consumers as they are now paying a more expensive product and also an increase in tax.
What lobbying strategies has the sugar industry used to keep the sugar subsidy in place?
The Lobbying strategy has to include both the House of Representatives and the Senate as well. Bills are generated in the house and then passed through the senate and then to other sub-committees, they all check, debate and verify before approval.
The lobbyist has to have a wide strategy to keep everyone in line.
The sugar producers pay the lobbyists as they are the beneficiaries of the subsidies.
We have the theory that the Corn Syrup Industry has to also pay the same lobbyists as the Sugar Bill as corn syrup prices are also high if the sugar price remains high. This ultimately keeps competitiveness between corn syrup versus sugar derivatives, as a product.
How is the federal government helping the industry in light of increased imports from Mexico?