251 Employees of Fruta Bomba and Belize Fruit Packers were told today that the foreign owned papaya company would be closed down in 6 months.
If you don't know about Fruta Bomba, it's Belize's biggest Papaya Producer - located near San Joaquin village in the Corozal District - and it's been operating in Belize for 22 years. The Company is owned by Brooks Tropicals - a fruit company based in the US State of Florida.
Brooks Tropicals sent out a release today saying that it is closing its growing and packing operations in Belize by mid-August.
And why now? Well, they just aren't making money - or at least that's according to a press release.
The release says, quote, "economic conditions, particularly after hurricane Dean in 2007 have hindered the company's substantial efforts to rebuild a profitable operation."
It continues, efforts over the last three years to build and maintain efficient growing and packing operations in Belize have not been successful and as a result we have incurred substantial annual losses in Belize that the company can no longer sustain."
And just like that, one of the biggest employers in the north is calling it quits - putting those 251 breadwinners out of a job in just a few months. It's dismal news for the economy in the north, and for the government. Today CEO in the Ministry of Agriculture Jose Alpuche told us he just got the news two days ago:..
Jules Vasquez
"From your perspective as the chief executive officer in the Ministry of Agriculture, do you feel somewhat caught off-guard like they've pull the rug from under you all at the Ministry of Agriculture with such short notice?"
Jose Alpuche, CEO - Ministry of Agriculture
"I believe it was a bit abrupt. Government regrets the decision. There is not a whole much we can do at this point in time except to ensure there is a smooth transition and that all liabilities from the company especially liabilities to workers are actually taken care of. As it relates to the papaya industry, their assets that they have at this point in time will be up for sale. That is from the company and we will work acidulously to see if in deed there may be another buyer for this venture. I don't know what more could have been done to satisfy them. Quite frankly very little more could have been done to improve on the benefits that they were already enjoying. This company has enjoyed an EPZ for one of its subsidiary. It also has enjoyed fiscal incentives for another one of its subsidiary. And I believe they have enjoyed all the space that are afforded to companies to operate in Belize."
Jules Vasquez
"Are you satisfied that the government did all it could to keep Brooks Tropical or Fruta Bomba engaged in Belize in the most conducive situation for an investor?"
Jose Alpuche, CEO - Ministry of Agriculture
"Yes. I believe so Jules. There is an opportunity cost to everything and there comes a point where there is only so much concessions that could be afforded to companies. The only difficulty is we have been having with them over the last few months had to do with water rights and I know we have some difficulties with location of some of their fields as it relates to bee keepers an spray zones etc. But we've been working on that as the issues arose. They have said to us that they've been moving operations to the Dominican Republic and I believe sourcing product from Guatemala also. And I don't think that there is a whole lot government could have done to try to convince them to stay. Quite frankly to be fair to Mr. Brooks, he has said that they had no substantial reason to fault the government of Belize for why they decided to move out. The fact is that they said they've been losing money and that is why they are oblige to move now."
Jules Vasquez
"Now, how much of an emergency is this both from an industry perspective to try and keep this industry going and also from a social perspective in order to try and make sure that 250 wage earners in the north don't lose their livelihoods?"
Jose Alpuche, CEO - Ministry of Agriculture
"That is the biggest challenge in which we would need to try and see how they can be accommodated in other sectors of the economy. That is the number one challenge and the number preoccupation for government right now."
Alpuche says that there are no prospective investors at this time to buy over the operations - which Brooks Tropicals would have to sell in the first place.
We note that while the company will close down in six months - it will begin to phase out jobs before that as it winds down operations - so it's not like all 250 employees will be kept on until August, most of them will go home before that.
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