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BSR-ASI Drives Ahead To Capture Cane Farmers
posted (November 11, 2014)
Last night we told you how the sugar mill, BSI-ASR had made a bold and unheard of move - urging the 5,500 cane farmers in the north to bypass their association - and sign contracts directly with the mill.

It's a daring maneuver and one heck of a gamble -which, if successful, would radically re-arrange the commercial landscape of the industry. Today was day one of the experiment when ASR-BSI called farmers from Corozal and Orange Walk to conferences learn more about the contract. The meeting started at 8:30 in Orange Walk Town and 7News was there:..

Jules Vasquez reporting
This morning over 200 cane farmers filled the hall at Gala Lounge in Orange Walk Town for what was dubbed a "pre-harvest conference."

Mac McLachlan, V.P. Int'l Relations - ASR
"We are aiming to try to have informative sessions with all harvest group leaders and that's about 370 in total in both Orange Walk and Corozal; about 170 in Orange Walk and I think we got pretty close to that number here."

They were there to hear the pitch from ASR BSI - on this, the proposed 18 page 7 year contract - complete that the factory wants them to sign by November 28th. Complete with accompanying brochure in Spanish - an indication of how thoroughly thought out the strategy is for ASR.

They listened studiously and attentively - analyzing what may be the toughest commercial decision they'll ever made; some spoke stridently even against their own association - while others verbalized passionately.

But mostly the farmers listened, and reasoned amongst themselves - appearing neither hostile nor too cozy with ASR.

But their presence alone spoke volumes: they were there against the implicit wishes of their association - they were there to hear what the other side had to offer:

Mac McLachlan, V.P. Int'l Relations - ASR
"We got an overriding sense that people are very serious about this crop. They want to plan for it, they want to move forward with it and I think to be honest the attendance speaks for itself here."

And while the turnout is one thing, the devil is in the details - and one big one is this clause right at the top, number 2.2 where BSI makes it clear that it owns the cane - a non-negotiable article for ASR-BSI:

Jules Vasquez
"We've heard a lot of blowback about the fine print."

Mac McLachlan, V.P. Int'l Relations - ASR
"Absolutely, I think that's the whole purpose of having these outreach meetings now, is to listen, is to hear what the farmers themselves have to say."

Terencio Chan, cane farmer, OW Branch
"Okay we are going to sign this, but it's just an interim agreement until we can come up and let us look at some of the issues and let's see if we can amend them. But definitely we need to move forward and get the crop started."

Reporter
"Is there any possibility that this contract may be revised following their questions and concerns?"

Mac McLachlan, V.P. Int'l Relations - ASR
"As I said to the farmers today we are listening to their views and the issue we have is that we have a timeline. Not everybody is going to agree with everything. I think that's fairly obvious but at the end of the day will be the choice of the cane farmer and the association whether or not they wish to sign up to a contract."

Terencio Chan, cane farmer, OW Branch
"It's not that whether I am going to take sides, but I am looking at it objectively so that we can be more conscientious of what is going on and not to delay this crop and if BSI is giving us an opportunity whereby as we groups or individual cane farmers we can start delivering our cane, even though it is not the Cane Farmers Association that will be responsible to organizing this group - that is good for me."

And while there were those for and against, at the end of the day we didn't see anyone signing the contract - they seemed more prepared to take a wait and see approach.

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