The food companies say we are on the brink of a sugar shortage that will wreak havoc on your candy bars and all that. According to the WSJ several large food companies including Kraft Foods Inc., General Mills Inc., Hershey Co. and Mars Inc. sent a letter to Agriculture Secretary Tom Vilsack warning that the US could run out of sugar if we don’t get rid of some tariffs.
The WSJ says that the companies threatened to lay off workers and increase consumer prices if their demands are not met.
Currently, there are various quotas and tariffs on sugar imports from everywhere except Mexico.
Meanwhile, Jack Roney, chief economist for the American Sugar Alliance, told CBS News that there isn’t actually a shortage.
“We doubt if they will do anything because there is absolutely no shortage of sugar in this market. Every sweetener-user company that’s looking for sugar can find it. We’ve got sugar sellers right now who’ve got sugar piled up waiting to sell.”