A week ago, the 2013/2014 sugar milling season finished favorably with all quotas met, and even with a little surplus. All things considered, it was a good year, but there is still the shadow of that unsettled bagasse issue hanging over the heads of the principals of the industry.
As it has widely been reported, the farmers delayed the delivery of the cane to force the factory owners to the negotiating table to discuss a payment for bagasse. After a stalemate, a breakthrough was made when an agreement between both sides was signed. The agreement was that the season would start and go to completion with an understanding that a final agreement would be reached by the end of the season for a bagasse payment.
Well, that deadline has come and gone, and still the farmers and factory owners can't reach a final price. BSI is offering 51 cents per ton of cane delivered, but the cane farmers association is not prepared to agree to anything less than $4 per tonne. They have agreed to at least take BSI's offer back to the general membership of farmers, at a meeting scheduled for July 20.
Realizing the severity of the issue, BSI has offered an olive branch in the form of a letter from the BSI Chief Finance Officer, Belizario Carballo, to the committee of management of the cane farmers association today.
CFO Carballo writes, quote, "Even though the Interim Agreement has now expired, BSI in a spirit of good faith does advise that its offer for a payment for bagasse made during the negotiations (specifically described on the Appendix to this letter) will remain open through 5:00 p.m. on Friday 1 August 2014. Furthermore, BSI advises that if the offer is accepted by BSCFA within such period and subject to concluding a new agreement, BSI is prepared to make the payment for bagasse retroactive for the 2013/14 crop." End Quote.
It remains to be seen how BSI's offer will come across to the general membership of the Belize Sugar Cane Farmers, but we'll keep following the story.
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