7 News Belize

Hon. Vega On Sugar Stalemate
posted (June 12, 2014)
Viewers may know very well that because of a breakdown of industrial relations between the cane farmers and Belize Sugar Industries, and its principal shareholder American Sugar Refining, there was a late start to the sugar crop, which both sides are trying to make up for.

The cane farmers held the industry hostage by refusing to deliver their cane because BSI refused to agree to pay them for bagasse. That protest only ended after both sides agreed that they would work on a resolution for a bagasse payment before the end of this cane delivery season.

Well, it's almost here, and even after months of negotiating, the cane farmers and the factory owners still cannot agree to a compromise on the bagasse issue.

Following a media appearance by one of the representatives of the cane farmers, BSI released a statement saying that the cane farmers association has yet to put forward a proposal for bagasse payment that is reasonable and takes into consideration the risk and investment from the factory owners.

Today, we asked Agricultural Minister Gaspar Vega why the negotiations have not come to an amicable end, given the crop season is almost finished. After all, that promise of a final agreement was a major reason why the cane farmers agreed to start the crop season in the first place. Vega told us today that they need to work out a compromise soon:

Hon. Gaspar Vega, Deputy Prime Minister
"These are two again private entities. We are just a mediator. We had offered to both parties that if they could not come to a amicable solution to the bagasse quantum then we could bring a more independent consultant, someone that has the capacity. We would have to do some research but it would be on their request also. We cannot come and dictate to them. Those are the difficult thing with these type of situations."

And though, they can't agree on Bagasse, the cane farmers and the factory owners managed to catch up with the late start of the crop season. Vega told us that this is testament that if they would stop feuding, their marriage in the sugar industry could actually be productive:

Hon. Gaspar Vega, Deputy Prime Minister
"I am very grateful to the almighty God, but also to BSI for milling nothing less than an average of 7,500 tonnes of sugar canes daily - an increase of 20% from last year and that is because of some 6 boilers that they put into the plant which cost along with some other little investments something like 25 million dollars. We all know that the factory had this capacity from before but that extra investment is what couldn't have been done, so I want to be thankful to ASR for taking on this challenge, but I also must say that likewise we have to be thankful to the cane farmers who have changed a lot of attitude especially in the harvesting of the sugar cane. That has what made the factory to mill better and have less breakage than what it uses to have before. As you know today the milling proficiency of the factory has increased to 91% versus 80% from just last year or two years ago which means a lot and that's why I say in this kind of scenarios we just have to hope that both parties come together because like I said a long time ago when we had the crisis - it's a marriage where we cannot have divorce. The cane farmers cannot survive without BSI and BSI cannot survive without the cane farmers and if the two of them would have better communication, we would only become more successful."

BSI notes in their statement that they've increased their daily milling output by as much as 25%.



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