Associations say high fees would translate to higher prices

The federal government should pay for food safety programs without imposing new taxes or fees on the food and beverage industries, a coalition of 60 business groups told Congress Wednesday.

At issue is President Barack Obama's proposed 2016 budget, which calls on the U.S. Food and Drug Administration to collect $60 million in new food facility registration and inspection fees from food producers and distributors in the next fiscal year, and another $103 million through a new import inspection fee.

In a letter to the leaders of the Senate and House appropriations committees, the coalition said the president's proposal would fall hardest on consumers since it would cause food producers to raise prices. The groups noted Congress has rejected new fees for food safety programs in the past.

"Food safety is the highest priority for America's food and beverage makers," said Kraig Naasz, CEO of the American Frozen Food Institute, which is leading the coalition. "We stand ready to work with the administration and Congress to ensure sufficient federal resources are allocated to FDA's critical food safety activities without increasing costs for consumers and food makers."

The coalition is asking Congress to identify other sources of funding for food safety, although it didn't offer any suggestions on what those may be.

Signatories of the letter include the American Bakers Association, American Farm Bureau Federation, American Feed Industry Association, Food Marketing Institute, Global Cold Chain Alliance, National Confectioners Association, National Grocers Association and United Fresh Produce Association.http://bit.ly/18nZuUp