Interest Group Analysis Memo
This memo presents discussion and analyses of various interest groups in the US Sugar Program. It is intended that the discussion and analyses would provide good insights into reforming the Sugar Program regarding the consumer sugar price increase defended by producers. Interest groups in this program include sugar producers, farm organizations, sugar consumers, dealers in agribusiness, the government agencies of US Department of Agriculture, welfare groups, labor unions and newly emerged agencies like the Environmental agencies. Sugar producers and farm organizations in the program can be traced back from the Great Depression, shortly before The Sugar Act of 1934 was passed. Sugar producers are usually owners of factories that process sugarcanes into sugar whilst farm organizations are organizations that comprise owners of sugar farms. These interest groups are found in the sugar producing areas of South East, Delta, Texas, Arizona and California. The government which is comprised of the White House and the Congress in Washington became part of the program as early as 1920s when it advanced subsidies to sugar farmers. Formed in 1862 and headquartered in Washington, USDA develops and executes federal government policies on sugar farming. Labor unions by laborers, especially the imported ones, became into existence in 19th century when sugar begun to be produced on large scale. From the 19th century too, environment groups got alarmed about impacts of sugar cane farming and sugar production such as deforestation and environmental degradation. Consumers and agribusiness dealers have included manufacturers, distributors, suppliers, wholesalers and retailers, and have been all over the US since the inception of sugarcane farming. Since 1789, there have been various welfare groups all over the US agitating for welfares and interests of farmers, consumers, environmentalists and laborers. Of course these welfare groups comprise members who are consumers, laborers, farmers and environmental activists.
The policy of the government, as it is that of the USDA, is to increase the farm income. However, being composed of members who are politicians, the price issue has largely benefited them politically. For agribusiness dealers, sugar producers and farm organizations, the common policy is to increase the farm income so that the industry can be more profitable. They would benefit by earning higher incomes. For consumers, labor unionists and welfare groups, their policy objectives are increasing farm incomes and maintaining the right industry income and sugar diets for poor citizens. Despite maintaining farm and industry income, these groups are interested in sugar diets that are affordable to even the poor. For environmental groups and other agencies, they add that food should be of quality and safe, and that exports markets and environmental qualities should be maintained. These groups would like to see that everybody benefits from the freshness of the environment and that firms produce safe and quality food for everybody.
A critical analysis of the discussion indicates that all groups would like to have increased firm and industry income. However, there are concerns from consumers, environmentalists and labor unionists that the sugar diet should be affordable. The environmentalists and labor unionists also posit that the sugar diet should be of quality even to the poor. The sugar production should ensure quality environment and the product can be exported so that the industry and farm earnings increase. The government therefore has to seek a consensual price that can cater for the needs of every interest group and ensure that the sugar diet is of good quality and it can be exported. Otherwise, farming can be subsidized to ensure that the sugar is affordable and farmers and other players still maintain a profitable industry.
Thank you.
Emily Ellis
Emily Ellis.
