Hawaii’s Representation in the US Senate and House and the
Destruction of the Hawaii Sugar Industry
By Eugene F. Douglass (Republican) former US Senate Candidate, 1998, 2000
I wrote this back in 1998, from the above video with Tucker Carlson, on his show Tucker Carlson Tonight 6/10/22, nothing has changed. It is just a bigger scam.
Introduction:
In 1998 the Hawaii Congressional delegation was led by Senators Daniel Akaka and Inouye with its support for Big Government and its interference in Free Trade and its
subsidizing of one food crop over another has led to the almost total destruction
of the Sugar Industry in Hawaii. The delegation has opposed free trade in Sugar
for the United States under the pretense of helping Sugar producers and
workers in Hawaii while they have supported US Government Subsidies for Corn
Alcohol. Constraints on trade of Sugar create an artificially high price for sugar
that makes Food Manufacturers look for Sweetener substitutes. US Government
Subsidies for Corn Alcohol cause the price for High-Fructose Corn Sweetener to
be lower in price than it ought to be, because Ethanol is made as a byproduct
with the manufacture of Corn Sweeteners and Corn Starch from what used to be
waste material.
I will use two companies, the first one A.E. Staley owned by the latter Tate &
Lyle, Ltd. to ill ustrate my point that Senators Daniel Inouye and Daniel Akaka
and their colleagues who support these policies have played a major role in
destroying the Hawaii sugar industry. To show that Sugar has been replaced in
mass food production by High-Fructose Corn Syrup and other corn sweeteners, I
will use A.E. Staley’s own words off their web site: http://www.aestaley.com.
And to show there is still a huge Cane and Beet Sugar market worldwide, I will
use the words of Tate & Lyle off of their web site: http://www.tate-lyle.co.uk. I
first became aware of this arrangement Senator Daniel Inouye made with Staley
and the Archer Daniels Midland Company (also known as ADM) back in 1985-6
when I worked for AE Staley as a Chemist. At that time there was still a huge
demand for Hawaii sugar because High Fructose Corn Syrup was just being
introduced and relatively unknown in Soft Drinks and Food Products. Inouye’s
deal with Staley and ADM led over the next 13 years to the almost total
destruction of Hawaii Sugar Production. Senator Akaka has supported these
policies over the years he has spent in the US House and Senate.
Representatives Mink and Abercrombie have likewise supported these
contradictory policies in their US House votes.
ADM and A.E. Staley Manufacturing Company, both headquartered in Decatur,
IL, have been developing many new uses for Corn Products over the years.
Government Subsidies for one of the byproducts (ethanol) of the manufacture of
Corn Products supported by many Senators and Congressmen given both
companies an unfair advantage in their costs for the production of High-Fructose
Corn Syrup and other Corn sweeteners. Federal Government Trade
Restrictions on Sugar cause the price for domestic sugar to be too high. The
Federal Government subsidy on Grain Ethanol, which is essentially
manufactured from the waste products of corn sweetener and corn starch
production, causes the price of corn sweeteners to be artificially low. This
results in the industrial demand for Cane and Beet Sugar to almost disappear in
the United States, because the other sweeteners have a huge price advantage.
This cannot continue. American Consumers need to have a free market for food
ingredients unfettered by unfair subsidies and price controls. If the price of
sugar were allowed to stabilize without the unfair subsidies of Corn Sweeteners,
the industrial demand for sugar in the United States will return. Sugar tastes
better as a sweetener in most manufactured foodstuffs. And taste is what
consumers want!
EVIDENCE
The following series of quotes with commentary will prove the nature of the
problem, and why the Democratic Hawaii Delegation to the US Congress do
NOT serve the people of Hawaii well, when these policies lead to the destruction
of a whole industry in Hawaii that led to much prosperity here.
A Quotation from A.E. Staley’s own Product Information:
“Breakthroughs in sweetener and starch technology have marked Staley’s
history for the last seven decades. From the development of a new corn syrup
after World War I when sugar was in short supply to recent advances in
fermentation technology, Staley has consistently been known for innovation. In
addition, Staley produces ethanol, used as an octane enhancer and oxygenate
in gasoline. Fuel alcohol is gaining increasing acceptance as an alternative and
cleaner burning additive for motor fuels.” This fuel alcohol is subsidized by the
US Government encouraged by Senator Daniel Inouye, (and later Senator
Daniel Akaka) in exchange for Staley and ADM’s support in the 1980’s for
keeping the Price for Domestic Sugar High!
“In the 1970s, Staley led the development and commercialization of High
Fructose Corn Syrup (HFCS), an ingredient that has replaced sugar in all major
soft drinks as well as many other food and beverage products. HFCS is still the
company’s flagship product. More recently, Staley introduced a crystalline form
of fructose, KRYSTAR® “
A.E. Staley Mfg. Co. is owned by a British Company Tate & Lyle that owns:
Domino Sugar, and Redpath Sugar made from Cane and Beet Sugar in the
United States and Canada. I will use Tate & Lyle as a major example of a
company that still grows and uses Cane Sugar on a worldwide basis, to show
quite clearly that Hawaii’s loss of the Sugar Industry was unnecessary and
largely due to the Federal Government’s interference in the Domestic Sugar
prices as well as it’s support for Grain Alcohol Subsidies.
“Tate & Lyle PLC is a global sugar, cereal sweetener and starch processing
group committed to growth through constant improvements in processing
methods, product and market innovation, and geographical expansion by
acquisition and investment.
With investments in all forms of sweetener spanning five continents, we extend
our interests in nearly 60 countries through an international network of
subsidiaries, partnerships and affiliations.
The dramatic growth in population and general improvement in global living
standards provide us with tremendous opportunities for future growth. From
helping to provide for the nutritional needs of the world's developing economies
to maximizing our potential in existing markets, we reflect our philosophy of
improving costs and efficiencies in an innovative manner to give us that extra
edge over competitors.”
Tate & Lyle’s Sugar Interests in the United States:
Tate & Lyle's US sweetener production accounts for between 20 and 25% of
total US demand. Our first major investment on the North American continent
was in 1959 with the acquisition of 51% of Redpath Sugars in Canada. Other
investments followed in molasses, beet, corn and cane including in 1988 the
acquisition of Domino Sugar Corporation.
Tate & Lyle's US cane sugar production activities are operated by Domino Sugar
Corporation which provides a wide range of industrial and refined sugars and
has around 20% of the US market. Domino® Sugar is the premier sugar brand in
the US and a familiar sight in millions of American homes. Through its innovative
Research and Development team and close partnering with customers, Domino
leads the industry in sales of highly profitable specialty products and exports to
Canada, Europe and Asia. In 1994, Domino became the first sugar company in
the US to achieve ISO 9002 accreditation.
Redpath Sugar has been refining and distributing sugar to the Canadian market
since 1854. From its highly efficient refinery in Toronto, Redpath produces
refined sugar both for the food manufacturing industry and the domestic retail
market.
Our first investment in the Mexican sugar market came in 1995 when Tate & Lyle
purchased a 49% shareholding in Grupo Industrial Azucarero de Occidente SA
de CV n the Saenz Group n which owns and operates three cane sugar mills
and associated refineries and distilleries in Mexico.
The Western Sugar Company operates 6 beet sugar factories in the mid-west
US. The company has nearly one hundred years experience of beet production
and supplies both industrial customers and consumers. Investment in plant
improvements has positioned Western Sugar as one of the low-cost producers in
the industry.
In the Pacific Region Tate & Lyle stills grows Cane Sugar:
Development outside the traditional geographical areas of North America,
Western Europe and Australia has been a feature of our investment program in
recent years. Nghe An, Tate & Lyle Sugar Company Limited's greenfield cane
factory, due to come on stream at the end of 1998, is Tate & Lyle's first
investment in a cane plant in Vietnam. Demand for sugar in Vietnam outstrips
supply and the country is one of the key growth economies of the region.
Tate & Lyle Bundaberg Ltd is the largest cane grower and a large sugar
producer in Australia. It operates a regional refinery and six sugar mills in
Queensland and is currently building a new mill in northern Queensland n the
first to be built in Queensland for over seventy years. The mill is due to start its
first crush in June 1998; its initial crop will be about 200,000 tons. The syrup will
be railed to the company's coastal mills for final processing into raw sugar.
Environmental considerations have been a key factor since the project's
inception. Bundaberg produces over 800,000 tons of raw sugar p.a. and over
100,000 tons of refined sugar. Tate & Lyle Bundaberg owns a 50%
shareholding in Bundaberg Distilling Company Ltd which produces 'The Famous
Bundaberg Rum', the largest selling Australian spirit brand. The company sells
around one million cases of rum a year. United Distillers own the balance.
They have a Cane Sugar plantation in Papua New Guinea and they manufacture
much Cane Sugar in Australia made under the Bundaberg label. Bundaberg
sugar sells all over the Pacific rim, at prices lower than American Sugar due to
the price supports supported by Daniel Akaka. Bundaberg Sugar can be
purchased in Micronesia for $2 per 2 kg (4.4 lbs) bag!! That is after shipping
and markups!
Tate & Lyle owns many Cane Sugar Installations in the Caribbean!
It was in the Caribbean that Tate & Lyle made its first overseas acquisition in the
1930s. As an importer of raw cane, Tate & Lyle has long enjoyed special ties
with the cane producing countries of the world. Trade between nations provides
links and opportunities. Booker Tate owned by Tate & Lyle is a major sugar
producer in the Caribbean and 'Booker Tate's expertise in sugar estate planning
and management have long been recognized in the Caribbean'
Booker Tate provides sugar estate planning, development and operational
management services for both greenfield projects and existing businesses. The
company has a long tradition of serving the Caribbean sugar industry and is
currently working in Guyana, Jamaica, Barbados, Belize and St Kitts.
Tate & Lyle has huge cane farms in Africa: 'Increased production at our cane
facilities feeds new markets in Africa' They are also big in Cane Molasses
according to them: “Through United Molasses, the UM Group handles around
40% of the world 's internationally traded molasses supply' Tate & Lyle is the
majority shareholder in Zambia's sole sugar producer.
In Europe:
In the United Kingdom, Tate & Lyle Sugars produces over one million tons of
cane sugar, principally for the UK market, at the world's largest cane refinery at
Silvertown, London. The Tate & Lyle name is synonymous with sugar in the UK
and is a familiar sight in stores across the Kingdom. It also produces the
renowned Lyle's Golden Syrup, as famous for its taste as for its illustrious green
and gold tin and the lion and bee trademark, which has been the subject of much
interest over the years. Tate & Lyle Sugars is the UK's only cane refiner with
approximately 40% of the home market. The company produces a full range of
industrial and retail products. Tate & Lyle Sugars also exports retail and
industrial packs of cane sugars and syrups worldwide. Tate & Lyle's Portuguese
refiner, Alcântara, operates a cane sugar refinery in Lisbon, servicing 55% of the
Portuguese market. It too produces a full range of retail and industrial sugars
and made history in 1997 when it was voted the number one agro-industrial
company in Portugal for the second consecutive year.
Tate & Lyle's sugar investments in Central Europe are through Eastern Sugar,
our joint venture with Générale Sucrière, which has interests in beet sugar
factories in Hungary n Kabai Cukorgyár which runs Hungary's largest and
newest beet factory, Slovakia n Juhocukor which has the country's most efficient
and modern beet factory, and in the Czech Republic n in 4 companies which
account for around 30% of Czech capacity. Eastern Sugar has also acquired an
interest in Poland, the principal market and producer country in Central Europe.
In SW Asia Tate & Lyle have huge sugar Interests like:
Chilwaria Sugars Limited n this is the T&L Group's first investment in the Indian
Sugar Industry and the first ever foreign shared joint sugar venture in India.
Chilwaria Sugars is a 50/50 joint venture with Simbhaoli Sugar Mills Ltd, who
have over 60 years experience in the Indian sugar industry, in a new sugar mill
at Chilwaria near Delhi in the state of Uttar Pradesh. Total domestic sugar
consumption in India is 14 million tons p.a. The new mill has a capacity of
3,500tcd.
Conclusions:
It is quite clear that the worldwide demand for Cane and Beet Sugar is huge, and
that the industrial demand for Sugar in the United States can return, but only if
the United States government gets out of the business of giving corporations
subsidies and preferences that are anti-competitive. It misuses the limited funds
the taxpayers of the United States and the State of Hawaii, while costing the
State of Hawaii and other Sugar producing States thousands of jobs, and billions
of dollars in lost sales.
It is quite evident that there is worldwide continued production of Sugar from
Cane and Sugar Beets, and yet Raw Cane and Sugar Refining here in Hawaii
has been almost driven out of business! The congressional delegation from
Hawaii are not properly representing the needs of Hawaii’s Cane Growers, and
Hawaii’s workers when they support such destructive government policies.
Nothing has changed with the current Congressional and Senate delegations representing Hawaii in Washington, DC. It is TIME for Real Change in Hawaii!
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