Obama Fee on Food Processors for Safety Would Raise Food Prices

Monday, February 27th, 2012

An Obama administration plan to raise $220 million for food-safety programs through fees on processing plants, warehouses and other facilities would hit consumers with higher food prices, industry groups said.

Congress rejected including a similar proposal in the Food and Drug Administration’s budget request last year and also ruled out the idea when debating a food-safety law that President Barack Obama signed last year.

Thirty-three industry groups said the cost of a food facility registration fee proposed by the administration to help fund oversight would be passed on to consumers at a time of economic hardship, according to a Feb. 23 letter the associations sent to top U.S. lawmakers.

Read More: Bloomberg