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Corn refiners group drops push to change U.S. sugar program

Wed, 06th Apr 2016 21:11

By Chris Prentice

NEW YORK, April 6 (Reuters) - A lobbying group representingcorn syrup makers like Archer Daniels Midland Co andCargill Inc has dropped a push for changes to the U.S.sugar program after making a rare move last year in launching abid to reform the program.

The Corn Refiners Association (CRA), part of the powerfulU.S. corn lobby, has halted its efforts push to reform the U.S.farm program for sugar, an intricate network of price supportsand import quota often criticized by free-trade advocates.

"I didn't see a way we could win" at sugar reform, said JohnBode, President and Chief Executive Officer of the CRA. "So weput our efforts into other places."

Bode said the group decided to cease its the push in late2015 after it became clear efforts at a sugar program amendmentwould not see a vote in Congress. CRA is focusing on otherissues including labeling of "added sugars" andgenetically-modified organisms (GMOs), he said.

Of $340,000 the group spent lobbying on a range of issues in2015, at least $150,000 was focused on the sugar program alone,according to disclosures filed with the U.S. Senate.

In Washington, CRA's decision to abandon the push representsa return to the status quo. The group's move to launch anoffensive against sugar was considered a rare one: Farminterests typically do not join efforts to reform supportprograms for other crops. Sugar buyers have long sought changesto the program, which they say hampers trade and inflatesdomestic prices of the sweetener.

For the sweetener groups, the decision suggests a thawing ofrelations after years of battling for share of a shrinkingmarket and over the definition of the term "sugar" in thecourtroom. The sugar and corn industries settled that disputemid-trial in late November.

"It is our hope that the end of a long litigation willenable us to fully restore the relationship between our twoindustries," said a spokeswoman for the Sugar Association in anemailed statement, noting the group welcomes the opportunity towork with industry colleagues on common issues.

CRA terminated its relationship with external firms AlpineGroup Inc and Issue Management Inc in the fourth quarter of 2015after enlisting the groups to tackle the issue that year,according to filings.

Other members of CRA include Ingredion Inc and Tate& Lyle Plc's U.S. subsidiary. (Reporting by Chris Prentice; Editing by David Gregorio)

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