Low prices being paid to sugar farmers are not being passed on to American consumers, Ray VanDriessche, President of the American Sugarbeet Association said this week. He was testifying before Members of the House of Representatives Agriculture Committee, as it begins deliberation on the 2002 Farm Bill.

Farmers are continuing to lose income as prices for sugar fall while big commercial sugar users are continuing to raise their prices on products containing sugar, said Mr VanDriessche.

He said that as a result of both the lower wholesale price and the higher prices charged to consumers, grocery and food manufacturers in the USA have added US$5.31bn to their profits.

By Kate Rew, just-food.com editorial team