For weeks, we've been following the commercial dispute between BSI and the Cane Farmers Association. The farmers want to get paid for bagasse - which is a by-product of sugar production that is now being used as bio fuel to generate electricity in a BSI subsidiary, BELCOGEN. In a statement yesterday, BSI told the farmers "no", not gonna happen, the cane bought from the farmers, plus they are the ones who invested in BELCOGEN. Sounds like the end of conversation, but this week, the farmers are making the rounds urging BSI to enter into talks before things get, in the farmers' words, "nasty." They told the media what that means today based on the mandate the Association has gotten from farmers in Orange Walk and Corozal:
Alfredo Ortega, Vice President - Belize Sugar Cane Farmers Association
"The mandate is that we won't start crop is we don't sign any agreement with BSI and in the agreement it has to include bagasse in it. We are asking and calling on BSI to come and let us dialogue because it is not only the cane farmers that will lose, it will be the industry as whole. We are calling on them to come and let us negotiate. I Think the answer that they have given is no, they will not be sharing with us, I think that is a real slap to the face of the farmers."
Reporter
"What would make things go nasty?"
Alfredo Ortega
"What can cause this to go nasty is that they have been preaching that the mill will be ready to start operations on the 25th of November. The farmers have said if there is no signing at that point in time we won't be starting crop. that's why we are calling on BSI and all the people involved to come and let us negotiate on the table so that we can end out with a peaceful and beneficial negotiation."
Oscar Alonzo, CEO - BSCFA
"The only time we will be able to liberate ourselves from these multinationals that come and down trod and trample our farmers is when we stand up. Farmers have shown that they are able to stand up. When they tried to impose the core sampler on them they stood up and they lost one life. There has to be sacrifices sometimes in order to enable your conditions to improve. We do not want to go to violence, we are not advocating that. That's why you see we are trying this approach. Let us settle this thing as business men."
Geovanni Brackett, reporter
"Are you willing to block the road? Are you willing to protest, strike...?"
Oscar Alonzo, CEO - BSCFA
"We are willing to protest. We are not saying block the roads. There are different forms and ways you can protest."
Jules Vasquez
"You all are putting your foot down now right?"
Oscar Alonzo, CEO - BSCFA
"We are not putting our foot down, we are extending a hand. We are saying look come let us sit down together."
BSI's statement yesterday said that for 30 years, it alone financed the cost of the storage and disposal of bagasse, and then it "designed, planned, financed, built, commissioned, managed and operated BELCOGEN at a cost of $130 million Belize dollars. BSI concludes, quote, "It is not reasonable…for the (Cane Farmers) to expect a return where it has made no investment," end quote. BSI concludes that commercial relationships…are governed by law and BSI has no obligation to share in any way the revenues from BELCOGEN.
The cane farmers agree, but add that nothing is free, and BSI, or BELCOGEN must pay for the bagasse input because it has a value:...
Alfredo Ortega, Vice President - Belize Sugar Cane Farmers Association
"We don't have to invest within the plan. We are investing with the product, with the raw material. It is our cane that is producing sugar, molasses and now bio-fuel."
Oscar Alonzo, CEO - BSCFA
"We say now that it is now time to include the factor of bagasse in the determination of a fair price. All we are saying pay us for the raw material. We don't want a part of the return they are making, that is theirs. Any investor deserves to have its return. Any investor should take into account the cost of raw material; the cost of material then has a price, it is not free and we have seen it now in their accounts that they have really put a price to it. If you are saying this bagasse is trash and free, how come now it has price for them within their inter-company accounts and so on? We have proposed to them that they pay us $10 per ton of cane for the bagasse; $10 is our opening price. Let see what is your counter proposal, how much that you think you should pay us?"
The farmers say that BSI sent them a letter yesterday inviting them to a meeting on November 19 in Belize City where they can discuss and negotiate everything except bagasse. The farmers say they first requested a meeting in late September, principally to discuss bagasse.
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