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May 16, 2008

Domino Foods' President on the farm bill

I was unable to reach Brian O'Malley, president of Domino Sugar owner Domino Foods, earlier in the week for my column on the farm bill. He called me back just now. The highlights:

The farm bill "is pretty good for the Baltimore plant," he said. It helps U.S. growers, ensures a supply of raw material for the Domino Sugar mill on Baltimore's harbor and -- through a small increase in the loan rate paid to farmers -- increases input costs only moderately.

What is missed in criticism over the farm bill, he says, is the fact that U.S. sugar prices haven't risen that much while farmers' costs for fuel and fertilizer have skyrocketed.

"Nothing's being talked about [concerning] the plight of the farmer -- all his input costs are going up," O'Malley said. "I know what it takes to run a farm. This is not windfall profit by any stretch of the imagination."

The Baltimore mill, he said, as running back at full speed after the fire it had last year. It may have even more than the 400 employees it reported last year, he said, because after an explosion at a big mill in Savannah growers sent their cane instead to Baltimore, which increased volume.

Posted by Jay Hancock at 12:32 PM | | Comments (0)
        

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Wednesdays and Fridays.
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