It's one thing to have a good portion of the U.S. population without health insurance. What happens when we run out of sugar and can't make Kripy Kreme doughnuts? The Wall Street Journal reports today that some companies are saying the country could "virtually run out of sugar" unless the Obama administration eases import restrictions. The big sugar-using companies — Hersheys and all the breakfast cereal makers — have sent a letter to Ag Secretary Tom Vilsack asking that the government increase the sugar import quota.
"Acording to USDA's World Agricultural Supply and Demand Estimates, the United States will end the next fiscal year with less than 13 days' worth of sugar on hand, unless imports are increased," the letter warns. "If this forcast is accurate, our nation will virtually run out of sugar." Meanwhile, sugar prices are going up, rising from less than ten cents a pound in 2008 to 23 cents Wednesday, a 28-year high.
The world is wolfing down more sugar than it is producing. One reason, according to the Journal, is that "Brazil is diverting huge amounts of its cane crop to making ethanol fuel." U.S. firms make the same complaint about this country's corn production, that too much is going to fuel and not enough to Lucky Charms and Coco Puffs.
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The Oklahoma Attorney General has sued Arkansas poultry companies for damages to the Illinois River. But a federal judge says he can't proceed without the Cherokee Nation as a plaintiff.
Many of the issues in rural America have to do with competition — as in, there's not enough of it. Hog farmers and poultry raisers worked under contract for a few large companies. Seeds are provided by a handful of businesses. Retail sales are concentrated. There are constant efforts to move the sale of cattle out of the auction barn where a fair price can be determined. The Obama Administration's top antitrust official, Christine A. Varney (above), is taking aim at some of these areas, according to Sunday's New York Times. Stephen Labaton reports, "At the request of some lawmakers, notably Senator Bernard Sanders, independent of Vermont, Ms. Varney is examining whether small agricultural operations are being hampered unfairly by large food processors, particularly in the milk industry, congressional aides said."
Food processing isn't the only area Varney is exploring. She is looking at complaints from phone companies that cable providers are blocking them from buying sports programs that the cable channels produce. She is also examining why generic drugs aren't more readily available. "It is a major policy reversal from the Bush administration, which did not prosecute cases in which some dominant companies engaged in potentially anticompetitive behavior, often because those officials maintained such behavior was not harmful to consumers," Labaton writes.
"In some cases, though, the new approach is being opposed by administration officials," Labaton continues. "Some fear that the crackdown is coming at a bad time, as corporate America reels from the recession. Other officials embrace the Bush administration’s view that larger companies and industry alliances can provide consumer benefits by making their businesses more efficient."
The Financial Times reports that the G8 countries will announce a "food security initiative" at a summit this week that will commit "more than $12bn (£7.3bn) for agricultural development over the next three years, in a move that signals a further shift from food aid to long-term investments in farming in the developing world." The change in tactics comes at a time when increased commodity prices and stagnant agricultural investment have led to an increase in the number of people worldwide who are hungry to over one billion.
For the past two decades, the U.S. has provided mostly food aid. The Obama administration is shifting to a policy that encourages increased agricultural productivity in poorer nations. "For too long, our primary response [to fight hunger] has been to send emergency [food] aid when the crisis is at its worst," Secretary of State Hillary Clinton said last month. "This saves lives, but it doesn't address hunger's root causes. It is, at best, a short-term fix."
The change in policy could cause some conflict in U.S. farm communities. The U.S. spent over $2 billion last year on American-grown crops shipped overseas. A shift to local production in poorer countries could diminish U.S. exports. The U.S. spends 20 times more on food aid in Africa than on efforts to boost food production, however. According to the FT, "annual spending on African farming projects topped $400m in the 1980s, but by 2006 had dwindled to $60m...."
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Organic foods cost about twice as much as the same product only without the organic label. Now the Washington Post tells us that foods labeled organic are chock full of the additives found in the cheaper, non-organic product. Kimberly Kindy and Lyndsey Layton report, for example: "Three years ago, U.S. Department of Agriculture employees determined that synthetic additives in organic baby formula violated federal standards and should be banned from a product carrying the federal organic label. Today the same additives, purported to boost brainpower and vision, can be found in 90 percent of organic baby formula."
Organic foods are now a $23 billion a year business. Half of all adults say they buy organic foods at least some times. "But the USDA program's shortcomings mean that consumers, who at times must pay twice as much for organic products, are not always getting what they expect: foods without pesticides and other chemicals, produced in a way that is gentle to the environment," according to the reporters.
The story the Post tells is how consistent lobbying has gradually weakened organic labeling standards. Well, not so gradually, since the National Organic Program was only created in 2002. That leaves consumers in the lurch. Or, as the current chair of the USDA's organic standards board said, "As the organic industry matures, it is becoming increasingly more difficult to find a balance between the integrity of the word 'organic' and the desire for the industry to grow."
The House Energy and Commerce Committee voted yesterday to give the Food & Drug Administration more power to police the nation's food supply. The proposal now goes to the full House. The new law would increase FDA's funding and require the agency to conduct yearly inspections of food facilities that run a high risk of contamination. The law would require all food production facilities to pay a $500 annual fee to help pay for the inspections.
The new law comes after contaminated foods, ranging from spinach to peppers to peanut butter, have sickened thousands of consumers. "A series of foodborne disease outbreaks...has not only sickened and killed American consumers, but has laid bare unacceptable gaps in our food safety laws," said committee chair Rep. Henry Waxman (D-CA). "Today the Committee will act to close those gaps — and give the Food and Drug Administration new authorities, new tools, and a new source of funding to carry out this vital mission."
The Washington Post notes that the FDA has been given a "formidable to-do list," including regulating tobacco. The agency, however, has compiled a long list of failures. "When I was first talking to the administration and the vetting process was going on, suddenly I realized that every day there was some story about a really bad situation and the FDA, and I thought, 'Do I really want this job'?" said new FDA commissioner Margaret A. Hamburg (above).
The U.S. Department of Agriculture is holding 'listening sessions' on its plan to tag farm animals. Yonder writer Richard Oswald drives to Jefferson City, Missouri, to testify.
The Des Moines Register's Philip Brasher writes today about the moves afoot in Congress to increase inspection of the nation's food producers. A House committee may vote this week on a bill that would "force processors to develop and follow plans for preventing contamination of their products," according to Brasher. "It would also require the government to inspect plants more frequently — as often as twice a year for the highest-risk products." The new laws come with fees to pay for the increased inspection.
Roll Call reports that the meat industry is ready to fight the bill, which would give the Food and Drug Administration regulatory control over the meat industry. Meat producers are currently inspected by the U.S. Department of Agriculture. “Right now, this is a bill we just don’t support,” said Colin Woodall, executive director of legislative affairs for the National Cattlemen’s Beef Association. “We are very much in support of food safety, but this bill would have a lot of unintended consequences and would add more costly regulations and won’t actually translate into safer food.”
Consumer groups favor moving inspection authority to the FDA.