Corn refiners group drops push to change U.S. sugar program

By Chris Prentice

NEW YORK, April 6 (Reuters) - A lobbying group representing corn syrup makers like Archer Daniels Midland Co and Cargill Inc has dropped a push for changes to the U.S (Other OTC: UBGXF - news) . sugar program after making a rare move last year in launching a bid to reform the program.

The Corn Refiners Association (CRA), part of the powerful U.S. corn lobby, has halted its efforts push to reform the U.S. farm program for sugar, an intricate network of price supports and import quota often criticized by free-trade advocates.

"I didn't see a way we could win" at sugar reform, said John Bode, President and Chief Executive Officer of the CRA. "So we put our efforts into other places."

Bode said the group decided to cease its the push in late 2015 after it became clear efforts at a sugar program amendment would not see a vote in Congress. CRA is focusing on other issues including labeling of "added sugars" and genetically-modified organisms (GMOs), he said.

Of $340,000 the group spent lobbying on a range of issues in 2015, at least $150,000 was focused on the sugar program alone, according to disclosures filed with the U.S. Senate.

In Washington, CRA's decision to abandon the push represents a return to the status quo. The group's move to launch an offensive against sugar was considered a rare one: Farm interests typically do not join efforts to reform support programs for other crops. Sugar buyers have long sought changes to the program, which they say hampers trade and inflates domestic prices of the sweetener.

For the sweetener groups, the decision suggests a thawing of relations after years of battling for share of a shrinking market and over the definition of the term "sugar" in the courtroom. The sugar and corn industries settled that dispute mid-trial in late November.

"It (Other OTC: ITGL - news) is our hope that the end of a long litigation will enable us to fully restore the relationship between our two industries," said a spokeswoman for the Sugar Association in an emailed statement, noting the group welcomes the opportunity to work with industry colleagues on common issues.

CRA terminated its relationship with external firms Alpine Group Inc and Issue Management Inc in the fourth quarter of 2015 after enlisting the groups to tackle the issue that year, according to filings.

Other members of CRA include Ingredion Inc and Tate & Lyle Plc's U.S. subsidiary. (Reporting by Chris Prentice; Editing by David Gregorio)