Beyond the domestic problems that the sugar industry has been experiencing with the BSI workers going on strike for better pay, the union's huffing and puffing is nothing compared to the difficulties the industry faces in international markets. Truth be told, the industry is at a crossroads of either becoming much more efficient or simply falling off the chart of world sugar producers.

Today the industry bore it all when representatives form the Ministries of Agriculture, Trade, and the cane farmers called a press conference to sound the alarm for a troubled industry.

Alfonso Noble Reporting,
The press conference was called to address a single issue: that is the dire crossroad Belize’s sugar industry finds itself at. Beyond all the technical notes contained in the volumes of information were distributed today the single sticking point is that the sugar industry is nearing the point of make or break and the bottom line is that we better buckle up or simply buckle:

“The EU remains the most important export destination for Belizean sugar. The CBI arrangements may be superceded by the provisions of the FTAA. CARICOM is the most stable market but it is becoming more competitive. And lastly the world market is the least attractive for Belize.”

But with the European Union sugar regime being challenged, 48% of our sugar export hangs in the balance along with the preferential price of 22.52 cents a pound that this block purchases our sugar for in comparison to 6.45 cents that sugar actually sells for on the world market. With this serious threat to our greatest consumer, Belize’s industry has to realize greater economies of scale. Government has commenced the process with the reformation of the entire industry.

Hon. Servulo Baeza, Minister of Agriculture
“We did critical analysis of the industry to identify the areas in which they can be interventions at the local level to enhance competitiveness. The working group was directed to specifically look at production, harvesting and transportation, marketing and distribution, milling and refining, and policies and institutions. These four main areas were carefully analyzed in the context of identifying their major constraints and making specific recommendations to address these issues.”

Combined with this there is a new sugar industry act that has instituted sugar quality controls, research and development as well as deregulation; that is, doing away with middlemen who are not necessarily cane farmers.

Hon. Servulo Baeza,
“If a farmer is producing 200 tons of canes but only has a license for a 100 tons - what used to happen before is that he was only allowed to deliver that 100 tons of cane in his name. Then he had to find a market for the other 100 tons. So he would have to sell that 100 tons of surplus to some other farmer that holds a license. With deregulation now, that farmer is able to deliver the whole 200 tons of production in his own name and so be able to gain the benefits of his efforts and his work.”

But even with farmers getting more for their work because of the reformation of the system, Baeza concedes that the revamping of the industry is not moving quite apace.

Hon. Servulo Baeza, Minister of Agriculture
“We can see that some changes are occurring but they are occurring very slowly. It is a process and I don’t think we can change from one day to the next. It is something that will take some time and I don’t think anybody can say that by 2006 we will be ready. But we are taking on the challenge.”

But even as the challenge is taken up, more likely than not, by 2006 we are going to lose the special preferential sugar agreement with the European Union. Even so Minister of Trade Hon. Eamon Courtenay says that there is still hope for Belizean sugar in the EU.

Hon. Eamon Courtenay, Minister of Trade
“2006 could possibly be the end of the SBS agreement. But that is just a small part of our exports to the EU. Our EU is more under the protocol which is set to expire possibly in 2008. But then we have the economic partnership agreement which is going to succeed that. And we intend to advocate very strongly that it be extended as part of the economic partnership agreement. So 2006 is just one aspect of the preferential arrangement.”

And this arrangement is being defended for the farmers who say they are in sugar for the long haul and are readying for reform and the new world trading order.

Alfredo Ortega, Cane Farmer
“We the cane farmers are accepting the change and farmers are trying very hard. And we are trying to survive. We have the confidence that sugar will continue.”

The sugar industry employs over ten thousand persons representing some 13.4% percent of the country's workforce. Last year it earned Belize US $78 million.