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The EU market prices will be standardized to reflect the world market prices, and this year's decrease is a step towards that leveling of the playing field. But, to the farmers, all they are worried about is their bottom lines and their bank loans. And so when the announcement went out, waves of concern started to radiate in the north. To ensure that rumors and misinformation do not run rampant at this early stage, 2 of the principals of ASR/BSI made an impromptu appearance on Centaur Television's morning show called Despierta Belice. Here's an excerpt of what they say to the radio listeners and tv viewers tuned in:

Belizario Carballo - CFO, ASR/BSI
"We already been seeing a price reduction in the EU market from last year. We were protected from those lower prices that obtained in the EU market last year as a result of the contract that we had that extended up to the 2015 crop. But from last year there was a drop in the EU market for several reasons and we can touch on those later in the show. But there was a drop in the EU market price below the minimum price of 4.25 Euros that were in a sense guaranteed under the previous contract that we had with Tate and Lyle that extended up to the 2015 crop and so from last year we were sensing the developments. We were seeing the developments actually in the EU market. What was anticipated would have occurred in 2017, where everybody knows that 2017 there would be significant changes in the EU market with the lifting of the restrictions of production of sugar. There is expected to be more production in Europe and more sugar available in Europe and therefore the price would have fallen. But those prices started to fall from last year and into this year as well and like I said that impact we were cushioned/sheltered from that impact because of the contract that we had, that provided a minimum price and I think Mac mentioned it several times in this show that we were actually getting paid about 100 Euros more than what the price in the market was. All of that plus a number of other factors combined to make last year's price $75 in that range. Compare to this now price estimate, which now reflects the prices that are prevailing in the EU market, because it's now a new contract and the new contract essentially provides for us to receive the average price that Tate and Lyle Sugar is able to purchase sugar from ACP countries like Belize. In other words countries who can import or export sugar into Europe at duty free terms. The average of that price will be what the contract will provide for."

Mac McLachlan- VP, International Relations, ASR Group
"Can I just make something very clear this morning? That price is the market price in Europe. Sugar is a global commodity and it's a commodity price. It's not something that BSI controls. It's not something the government controls. It's not something the Cane Farmers Association controls. It's a market price. For the last two years now we have been running the industry collectively of the likely impact that changes in the EU sugar regime are going to have and these changes will affect all sugar producers who have enjoyed preferential access in the EU market in the past. The same conversations are taking place in Jamaica, in Guyana, in Barbados as are taking place here. We have been working with the association and with the government on a strategic development plan to look at how we can improve the competitiveness of Belizean sugar. So that in the final analysis, that sugar will be competitive even at the global market price. Today and for this crop, the price receive in Europe are still high from the global market price which is extremely low. I just want to be very clear that this price is not something anyone controls."

Now, while ASR/BSI estimates $41.56 per tonne of sugar cane, the reality of the farmers is that they will actually only be paid $35.33. It gets a bit technical at this point, but the agreement between the cane farmers and the factory owners is that the first payment for all cane delivered is 85% of the value, which works out to $35.33. They will get a second payment 5 weeks after the crop ends, which is 10% of whatever the new market price is at that time. If this price increases from the current $41.56, then the farmers will get paid more. If it decreases, then they will get less. Then, the last 5% will be paid the farmers based what the final prices are after all the sugar is sold on the European and local markets. That comes a few weeks before the start of the next season. So, for the farmers to weather this difficult time, they need to deliver high quality cane, and the market prices will have to increase.

We're told that this afternoon, representatives of ASR/BSI met with executives of the Belize Sugar Cane Farmers Association, and one of the interim measures they are hoping to take is to approach the Prime Minister. They are hoping that the Government will be willing to consider an increase in the prices of local sugar to help mitigate the difficulties from these low European prices. We'll keep following this developing story.