Right now, the Belize Sugar Cane Farmers Association is scrambling to reverse a suspension they received from the international accreditation agency, "Fair Trade." If they don't fix it, the BSCFA could lose about 1.2 million dollars in financial assistance.
So, first, here's how Fair Trade works. The UK based agency asks consumers in developed countries to pay a premium on products produced in developing countries. These consumers do this conscientiously with the intention to assist the smaller farmers in these developing countries to improve their standard of living.
But, to get Fair Trade certification, there are strict regulations, and they regularly check on organizations to make sure everything is on the level. It was in one of those Fair Trade audits of the BSCFA that they found what is being referred to as "phantom farmers". These are farmers who buy a portion of another farmer's quota, and deliver the cane as if the quota were theirs. So, for example, if a farmer has 1 tonne of cane, and no license to deliver it, they would approach someone with a license for 3 tonnes, who maybe is only able to deliver 2 tonnes. It's a widespread practice in the sugar industry, but under Fair Trade it's a major "no-no." We're told that in a recent report, the Fair Trade Auditors flagged cane farmer Eloy Escalante. For the past 3 years, he had not been delivering cane, but he had a quota, and sold it to Minister Edmond Castro's son.
Reports are that Eloy Escalante admitted this to the Fair Trade auditors, and it played a role in BSCFA being suspended from Fair Trade, since he is a member of the association.
So, was the Castro Escalante deal the reason why over a million dollars is in jeopardy for all the rest of BSCFA's members? Edmond Castro disagreed today when we spoke to him via phone:
Hon. Edmond Castro - Minister, NEMO & Transport
"My name doesn't appear nowhere at no cane farmer period. But I am second generation cane farmer. My father was a cane farmer from the 70's all the way to the 90's, we were cane farmers. Step out of it for a little bit, my son, we got back into the cane business during the time of the massive drought that we had in Belize Rural North where our cows were dying because we didn't have feed. We start back with cane to feed the cows and assist some of my farmers in the constituency, we went ahead and we buy out Mr. Eloy Escalante quota. My son buy out Eloy Escalante quota of a hundred and 37 tons. We reported that to the sugar board and all the other organization and agency who needed to know. We buy out Escalante. Escalante has not been reproducing for the past 2 or 3 years. He had on the books a hundred and 37 ton quota. We buy him out. The sugar board said, you have to run this thing as administrator for next year. Next year we will do the name change. All they will do is one name change, but they refuse to do because of their political mischievousness. The BCFA (Belize Cane Farmers Association) - my son purchase a hundred and 37 quotas from Eloy Escalante. The following year they should have kicked off his name from their books, because he has not been producing sugar cane. He doesn't have any he's not delivering any. They changed the game and say we are not changing any names this year and then the following year and the following year. That's why they get screwed because of foolishness."
We are told that some 60 other farmers were flagged by the Fair Trade Audit. We've tried to contact the leaders of the Belize Sugar Cane Farmers Association, but they told us that they cannot comment because they are awaiting a response from Fair Trade about the corrective measures they intend to take, so that the suspension can be lifted within the 30-day window.
So, why didn't Castro and his son simply go to the Sugar Cane Production Committee for their own licenses? That's what we pressed him on today, and the interview took an interesting twist, to state it mildly. Here's how that question and answer went:
Daniel Ortiz, 7News
"Sir, doesn't the person who allows for quotas, who gives license for quotas, isn't that the sugar cane production committee?"
Hon. Edmond Castro - Minister, NEMO & Transport
"Yes sir, this is a straight business. People sell quota all the time, but they have an unwritten rule. You can't say you are buying the quota which is foolishness. We bought Mr. Escalante quota of a hundred and thirty seven ton. Last year on that quota, we had it over one thousand eight hundred canes we delivered to the factory. We are producing cane. Eloy Escalante is not a cane farmer."
Daniel Ortiz, 7News
"But sir why didn't you or your son simply go to the sugar cane production committee and ask to be..."
Hon. Edmond Castro - Minister, NEMO & Transport
"All that was done, every year. Every year that was done. You have changed the name Eloy Escalante is no longer a cane farmer. We bought him out. They know, they said the following year they will change it not to worry about it."
Daniel Ortiz, 7News
"As far as I am aware the sugar cane production committee is the one who gives licenses. Your Castro family should have been able to get their own licenses so you don't have to buy out Mr. Eloy Escalante's quota."
Hon. Edmond Castro - Minister, NEMO & Transport
"My brother, business is business."
Daniel Ortiz, 7News
"The sugar cane production committee gave you all a reason as to why they don't want to register or give your family a license to deliver cane so..."
Hon. Edmond Castro - Minister, NEMO & Transport
"We have the license. If we did have the license then we can't deliver."
Daniel Ortiz, 7News
"But sir as far as I understand the license you are using is Mr. Eloy Escalante's license for quota."
Hon. Edmond Castro - Minister, NEMO & Transport
"Sir, we purchased Escalante."
Daniel Ortiz, 7News
"But I am simply asking did they not give you all a reason as to why you do not..."
Hon. Edmond Castro - Minister, NEMO & Transport
"Daniel, this is why you get into foolishness, you are asking one thing as if you are retarded over and over. Go and speak to the sugar board, go and speak to the cane farmers association. They can answer you that. I can't answer for them."
Daniel Ortiz, 7News
"Understood sir."
Hon. Edmond Castro - Minister, NEMO & Transport
"You are a bright man, don't sound as if you are retarded, you are saying the same thing over and over. Move on, next question."
We understand that farmers also use this practice of buying and selling quotas as an additional source of income - which does not go to the bank. The farmers get to pocket that part of their production earnings without the Bank requiring them to put it up as part of collateral to secure their loan.
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