Dive Brief:
- Former Florida Gov. and 2016 presidential candidate Jeb Bush has surprised sugar industry lobbyists by favoring to phase out government subsidies for sugar companies after being a longtime supporter.
- "Bush has been widely viewed as a sugar industry ally. Sugar companies and executives have donated nearly $600,000 to his campaign, according to the Center for Responsive Politics, a nonpartisan campaign research organization," The Washington Post reported.
- Advocates for the sugar industry say that U.S. sugar is only able to compete in an extremely subsidized international market because of the subsidy program. The corn industry, which produces corn syrup and other sweeteners, claims the program is "unnecessary and benefits a competitor, sometimes at taxpayers’ expense," according to The Washington Post.
Dive Insight:
"The move, a surprise to industry lobbyists, could help the Republican's struggling presidential campaign court conservative activists and competing industries that decry the sugar program as 'crony capitalism,' according to The Washington Post. "Bush’s position, confirmed this week by campaign aides, comes as he retools his operation to focus on early-voting states, including Iowa, where the corn industry is preparing to begin an ad campaign attacking the subsidy."
It's not often that two different commodity sectors square off against one another, particularly in such a public way. But this year, tensions have run high between sugar producers and the corn industry, particularly as competition continues to rise between the use of sugar and high fructose corn syrup.
Next month, the two industries battle in court over what is considered "natural." Corn refiners have claimed in ad campaigns that high fructose corn syrup is just as natural and nutritionally equivalent to sugar, and sugar producers are seeking damages.
Both sugar and corn are dealing with consumers' shift away from sugary and processed foods and beverages.
A spokesman for the American Sugar Alliance told the Washington Post that the industry is grateful for Bush's past support.