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The Bagasse Impasse Explained (Sort Of)
posted (November 7, 2014)
Last night, we showed you our interview with the CEO of the Belize Sugar Cane Farmers Association. He discussed with us that the start of next crop season should not be affected the unresolved commercial agreement.

What he did tell us is that the discussions about bagasse, that old issue that the cane farmers and the factor owners still can't resolve, is much more contentious, and it could affect the industrial relations.

The last time both sides met for negotiations was October 9. The Association's CEO says that at that meeting, they got a clear picture of where BSI wants to go, which the Association is not too happy about:

Oscar Alonzo, CEO - BSCFA
"First of all they still keeping the formula for the payment of bagasse within the agreement and basing it on fiber. And they have indicated adamantly that that's it and it's not negotiable. We have to accept payment and not only that - that payment will no longer be for this crop, it will be for the next crop. So those are positions that we find have become much more drastic."

"The other issue is in relation to the settlement of disputes; we had proposed that what exists in the act right now is quite adequate in trying to resolve disputes and disagreements. In the first place we prefer to resolve them amicably, but if that is impossible then we have certain things in the act that enables us to try to reach such resolution. Now what they are saying they want that completely removed and they want all disagreements, all disputes resolved in the courts which we find unacceptable because it imposes additional conditions that are unfavorable to the cane farming community. The other fundamental position that they have come with that is that they no longer want to sign an agreement for 3 years. They want to sign an agreement for 7 years now, using the justification that they plan to make further investment of approximately 300 million dollars and that they need a proper investment climate and a proper framework for them to recover their investment since it's a long term investment. Now, we are very unhappy with that because there are several things that indicate that this is only trying to ensure that they continue to harness a great deal of the gains, a great deal of the proceeds and so on from the sugarcane for their benefit only."

"Now, we wanted to be clear, we are not promoting industrial action. We want the farmers to deliver their cane and we are considering other forms of action, but of course the farmers have to use the implications of what is occurring and if they choose to take that action again - that is their prerogative."

These are 3 of the main points that both sides can't agree on; there are more, which have not shown you which was discussed in our 25 minute interview with the CEO. He says that the tone of BSI's negotiations suggests that the company has hardened their stance on these new proposed changes which the association does not accept. BSI-ASR is expected to comment next week.

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