Photo: Prime Minister Hon. John Briceño

After days of arduous discussion between BSI/ASR and BSCFA, no significant headway was made for the signing of a new commercial agreement. Recommendations have been made by BSI/ASR to revert to the terms of an interim agreement that was signed prior to the last crop. BSCFA met with its membership today to finalize a decision.

by Marco Lopez

BELIZE CITY, Thurs. Dec. 22, 2022

The days-long mediation carried out between the Belize Sugar Industries Limited (BSI) and the Belize Sugar Cane Farmers Association (BSCFA) has yielded no progress in the resolution of the rift between the two entities. In light of what appears to be a failure in the mediation process, and with additional revenue being foregone with each day that passes without the commencement of sugar-milling, the mill and the government have been scrambling to have an interim agreement signed in order for the Sugar Industry Control Board to officially gazette the start of milling for this season. BSI/ASR, in a release issued on Monday, suggested that an interim agreement—similar to the one signed last year to pave the way for the start of the last crop—be signed for a period of two years, until a final commercial agreement can be agreed upon.

Doing so, stated the BSI release, “would provide time for further consideration of alternative approaches and to ensure BSCFA farmers are able to deliver their cane and avoid any further delays to the crop and damages to the economy.”

The BSI release further noted, “Every day that passes is a lost opportunity for the industry and the national economy, recognizing the important role of the sugar industry in supporting the livelihoods of so many people and the benefits it brings to the national economy, including the provision of 15% of Belize’s electricity needs from renewable energy.”

The leadership of the BSCFA, has, however, claimed that they were blindsided by that proposal, since it was never brought up in the mediation session. The chairman of the association’s management committee, Alfredo Ortega, stated. “We didn’t expect that they would put out a release, and we see once again the dirty game they are playing, because this that they took out in the document isn’t anything we discussed during the mediation that we had. So in reality we didn’t think that this would have happened.”

The members of the BSCFA met today to vote on whether or not they will agree to sign onto an interim agreement again, and prior to that meeting the Minister of Agriculture, Hon. Jose Mai, told reporters that the leadership of the association had indicated its willingness to consider signing the agreement for a period not longer than one year. Mai said that while mediation did not yield the desired outcome, the milling of the crop harvested in this new season has to begin, and the SICB, following an emergency meeting on Saturday afternoon, December 17, set December 27 as the tentative date for the start of milling—provided that BSCFA and BSI/ASR sign an agreement. 

Hon. Mai pointed out that the board does not intend to begin the crop if the largest sugar cane association does not have a signed agreement with the mill. While three other smaller sugarcane farmer associations—which together produce about 50 percent of the cane milled by BSI—have signed agreements and may be ready to begin the delivery of sugar cane, in his view, to begin the crop without the BSCFA would lead to chaos.

When interviewed yesterday, Prime Minister Hon. John Briceño emphasized that both sides must reach a compromise in the short term to ensure that the crop begins by next Tuesday. He said that his administration has been doing what it can to encourage the process, but the parties have not been able to find a common ground. In reference to BSI’s proposal that a 2-year interim agreement be signed, he said that he shares the BSCFA’s view that two years may be too long a period of duration for an interim agreement, and that he believes the company and association can sign an agreement that lasts one year.

He has said that Cabinet will hear submissions from both the BSCFA and BSI/ASR in sessions to be held next year, but insists that the starting of this year’s crop is of vital importance to the country.

“I don’t think they need two years. I think BSI wants to have some sort of certainty for the next two years while they work out a new pricing formula. I don’t think it is necessarily a tactic to hold back things. I think that they want to make sure they have enough time, I believe that if we sit down seriously and put everything on the table, the cards, what are your expenses, how it is that you are … because all of this came because the farmers believe that the Net Strip Value, the amount that is being used to get the Net Strip Value is too high, so if BSI can come to the table and say ‘these are my expenses’, then it is something that can be worked from there backward coming to the formula,” Prime Minister Briceño remarked.

While the government has demonstrated its willingness to facilitate the negotiations between the two parties, PM Briceño noted that they “have to be the honest broker” and “walk the thin line” to avoid litigation from either party.  

The SICB has given the parties some additional time to work to reach an agreement, and Minister Mai expressed his belief prior to the BSCFA meeting that the association’s membership would concede to signing a one-year agreement, but he refused to refer to such a contract as an “interim agreement”.

“For some reason or another, when you use the word ‘interim’, it makes belief that it is only a little shimmy agreement, and maybe that is the reason why FairTrade premiums were withheld from BSCFA, which is unfair,” Mai pointed out.

He expressed hopes that the signing of this agreement, which by all accounts would be the same interim contract that governed the last sugar crop, will be honored by the persons responsible for the disbursement of Fair Trade premiums to the association.

Today, it was announced, following a meeting of the BSCFA members in Orange Walk, that the farmers who belong to the association have agreed to sign onto a one-year interim agreement with the mill, BSI/ASR. While the two-year duration of the agreement that was proposed by the company was not accepted, this indication of the BSCFA’s willingness to once again sign on to the interim agreement is good news for the sugar industry, and will likely lead to the starting of this year’s crop as soon as that agreement is signed between the two parties. 

Chairman of the BSCFA, Fred Ortega, has emphasized, however, that the interim agreement is short-term – meant to start the crop and hold over an industry until the anticipated commercial agreement is signed. That commercial agreement will be a long-term contract between the parties. He also noted that none of the terms of the interim agreement signed to start last year’s crop were changed. 

It now appears, in light of the SICB designation of December 27 as the tentative date for the start of the sugar crop, that the yearly sugar zafra might indeed commence early next week.