7 News Belize

Cane Farmer Associations Beg For Better Price: BSI Says No Go
posted (November 20, 2015)
Last week, we reported on the difficult times that the local sugar industry is going to have to fight through because prices for sugar are low in Europe right now. The factory owner, ASR/BSI, has released the preliminary price estimates for this year' crop at $41.56 per tonne of cane, which is a 21% decrease from last year.

At this price, the farmers are very concerned that they will not be able to get a return on their investment, much less pay their loans to the bank. They're not convinced that BSI's estimate accurately reflects the market status in Europe. So all 3 Associations, the Belize Sugar Cane Farmers, the Corozal Sugar Cane Producers, and the Progressive Sugar Cane Producers, wrote to the Deputy Prime Minister and BSI earlier this week. They asked that BSI adjust the figure, so that the farmers could get another 5 dollars per tonne of cane delivered.

On Wednesday, the CEO of the Belize Sugar Cane Farmers Association told our colleague from CTV3 News about this joint letter:

Oscar Alonzo - CEO, BSCFA
"The 3 associations met to discuss this situation about the cane price estimate, which in deed has been one of the lowest for the past several years. Collectively we are not happy and a letter was signed jointly by tem directly to the Deputy Prime Minister and the Minister of Agriculture to try to see if BSI can: 1) revised some of the assumption it has use in determination of the price estimate. They can enable the farmers to get at least $5 - $6 more in the first cane payment. We already sent our proposal to BSI separately as BSCFA. But now we have put it in this joint letter to the DPM. Also other measures are being considered which includes in the price of sugar sold on the local domestic market. Because we know that the low price we have compared to the high price in the neighboring countries in only stimulating contraband of our product of which the cane farmers and even the manufacturers are not benefitting. We have indicated in that letter that a minimum increase of about 25 cents per pound of sugar to be considered."

Courtney Weatherburne
"Which is something that you all have been asking for quite some time."

Oscar Alonzo - CEO, BSCFA
"Yes, we have been asking for it. But as you know, I think sugar has been one of the staple commodities in Belize that has received the least increases the past. They have more given increases for beans, rice, flour and all of these other staples. But in the case of sugar, I think has been more than 10-15 years that no increase has been given for the price for sugar on the local market. We are seeing that the stock of sugar is diminishing now. Once it was a surplus, but now it's diminishing. The deficit is lowering, so there is more demand for it. Also there has been a rebound in the price of sugar, so we feel that there is room for the company to consider a reasonable increase in the price, so that the farmers can get a better 1st cane payment. Because this will affect them disastrously."

BSI's Chief Financial Officer, Belizario Carballo has written back all 3 associations in a very detailed 4 page letter basically telling them that no adjustment to the current cane that is possible. He explained each variable in the European market which BSI has measured, and why their prediction is accurate, and how it ties in with the sugar prices. It ends off by assuring the executive members of the 3 associations that if the price changes over the course of the sugar season, the farmers will benefit fully from it.

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