Sugar Subsidies Drive Candy Makers AbroadBack in the 1930s at the height of the Great Depression, the U.S. government stepped in to support the U.S. sugar industry with a combination of subsidies, price supports, import quotas, and tariffs. These actions were meant to be temporary, but as of 2015, they are still in place. Under policies approved in the 2008 farm bill, the government guarantees 85 percent of the market for U.S. producers, primarily farmers growing sugar beets and cane. The remaining 15 percent is allocated for imports from certain countries at a preferential tariff rate. The government also sets a floor price for sugar. If the price falls below the floor, the government steps in to purchase excess supply, driving the price back up again. The surplus is then sold at a loss to producers of ethanol. A significant U.S. sugar harvest in 2013 required the government to spend some $300 million to prop up U.S. sugar prices. As a result of these policies, between 2010 and 2013, the U.S. sugar price has averaged between 64 and 92 percent higher than the world price of sugar.American sugar producers say that the federal programs are necessary to keep big sugar-producing countries such as Brazil, India, and Thailand from flooding the U.S. market and driving them out of business. Opponents of the practice include numerous small candy producers. Many of them complain about the high U.S. price for sugar. Increasingly, they have responded by moving production offshore. For example, the Spangler Candy Company, the maker of Dum Dums, has moved 200 jobs from Ohio to Juarez, Mexico, where it makes candy canes that are then imported back into the United States. Similarly, Adams & Brooks, a California-based candy company, has shifted two-thirds of its production across the border to Mexico in response to higher U.S. sugar prices.
Sugar Subsidies Drive Candy Makers <br>Abroad<br>Back in the 1930s at the height of the Great Depression, the U.S. government stepped <br>in to support the U.S. sugar industry with a combination of subsidies, price supports, <br>import quotas, and tariffs. These actions were meant to be temporary, but as of 2015, <br>they are still in place. Under policies approved in the 2008 farm bill, the government <br>guarantees 85 percent of the market for U.S. producers, primarily farmers growing <br>sugar beets and cane. The remaining 15 percent is allocated for imports from certain <br>countries at a preferential tariff rate. The government also sets a floor price for sugar. <br>If the price falls below the floor, the government steps in to purchase excess supply, <br>driving the price back up again. The surplus is then sold at a loss to producers of <br>ethanol. A significant U.S. sugar harvest in 2013 required the government to spend <br>some $300 million to prop up U.S. sugar prices. As a result of these policies, between <br>2010 and 2013, the U.S. sugar price has averaged between 64 and 92 percent higher <br>than the world price of sugar.<br>American sugar producers say that the federal programs are necessary to keep big <br>sugar-producing countries such as Brazil, India, and Thailand from flooding the U.S. <br>market and driving them out of business. Opponents of the practice include <br>หลายผู้ผลิตลูกอมขนาดเล็ก หลายคนบ่นเกี่ยวกับราคาของสหรัฐสูง<br>สำหรับน้ำตาล มากขึ้นเรื่อย ๆ พวกเขามีการตอบสนองจากการผลิตที่เคลื่อนไหวในต่างประเทศ สำหรับ<br>ตัวอย่างเช่น บริษัท Candy Spangler ผลิตของ Dum Dums ได้ย้าย 200 <br>งานจากโอไฮโอฮัวเรซ, เม็กซิโก, ที่มันทำให้ขนมหวานที่มีการนำเข้าแล้ว<br>กลับเข้ามาในประเทศสหรัฐอเมริกา ในทำนองเดียวกันอดัมส์และบรูคส์ขนมแคลิฟอร์เนียตาม<br>บริษัท ได้เปลี่ยนสองในสามของการผลิตข้ามพรมแดนไปยังเม็กซิโกใน<br>การตอบสนองต่อราคาน้ำตาลในสหรัฐที่สูงขึ้น
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