Photo: Aerial view of BSI/ASR factory at Tower Hill
ORANGE WALK, Thurs. Jan. 18, 2024
Belize Sugar Industries Ltd. (BSI) officials today confirmed to Amandala that the 2023/2024 sugar crop season up north is “in full swing” and progressing smoothly. In 21 days of crop since the start of the zafra on December 28th, first with only one boiler, but now with both, a total of 82,964 tonnes of cane have been milled, and 6,287 tonnes of sugar have been produced. The second boiler was brought on stream after BSI and the largest cane farmer association, the Belize Sugar Cane Farmers Association (BSCFA) signed an interim commercial agreement of two years on the evening of January 8, 2024. Therefore, all four cañero associations are currently delivering cane to the mill. The only time that production was paused was toward the end of 2023 due to weather conditions and then for scheduled maintenance which takes place every two weeks.
Olivia Carballo-Avilez, BSI’s Manager of Cane Farmer Relations, shared that the quality (11tc/ts) is typical for this time of the year, and there are not any significant concerns regarding mud. They also welcome that the weather is holding up, though the fields are still moist and farmers therefore need to take note of harvesting practices. As fields continue to dry up and cane matures, cane quality is expected to improve.
One concern is the labour factor. According to Carballo-Avilez, farmers are facing challenges because the availability of cane cutters has decreased by about 20% compared with the start for previous crops. Carballo-Avilez says BSI is assessing how conditions can be improved for cane cutters so they are retained and productivity is improved. William Neal, BSI’s Communications & Government Affairs Officer, explained that cane cutting is back-breaking work, and they are exploring the introduction of programs of rest and shade, and switching cane cutting to an earlier time to reduce sun exposure.
Along with the Sugar Cane Production Committee, BSI is also looking at the possibility of accessing migrant labour. Another option being reviewed is a switch to mechanical harvesting. Carballo-Avilez revealed that currently in country is an expert from Australia working with three farmers from the different associations who are using mechanical harvesters. They are also exploring the use of a long stick cane cutter currently employed in Mexico which Carballo-Avilez says “looks very well adapted to our conditions and the smaller cane fields.”
BSI has disposed of over 50% of imported sugar; Santander asks to sell locally
As to the local sugar shortage impacting Belize since the second half of 2023, Neal confirmed that upwards of 50% of the 250 metric tonnes the company imported in December 2023 has left their warehouse. When the remainder is depleted, the locally produced sugar will be made available at the controlled price of 75 cents per pound as opposed to the current $1.50/$1.60 per pound for the imported white sugar.
While BSI says it did not apply a mark-up on the imported sugar which is equivalent to a week’s supply, Santander Sugar Group out of the Cayo District is saying that there is no reason why the Belizean public should pay such high costs for imported sugar when they can fill the gap in meeting local demand. Currently, the company operates under a Designated Processing Zone license (previously an EPZ) and is only allowed to export the sugar it produces. In a release, it calls on the Government to grant the company a quota saying its 2024 harvest season started January 8 without a hitch, and it can supply both white and brown direct consumption sugars for the local market. Santander says, “During the sugar shortage in the country, Santander was unofficially called upon on numerous occasions for the provision of white sugar …” Today, Beverly Burke, Santander’s Compliance, Government Affairs and Public Relations Manager, told Amandala that it appears the sugar shortage will last some time, and the Government need not go outside to find a solution, especially when “Belize is the country that is producing the most sugar in the entire Caribbean.” Burke said they can provide the supply at a lower price than the imported cost, but above the current controlled price of 75 cents.
Burke affirmed that it is not a matter of the company’s inability to find a market for its sugar abroad, but rather, that as a Belizean company, it should be allowed to have a local presence. She is calling on the Government to begin formal discussions with them.
Asked about allowing Santander to sell sugar locally, Minister of Agriculture, Hon. Jose Mai said there should be a clause that would allow the Government to pursue that avenue if it must, but he was uncertain about the specifics.
This week, Prime Minister John Briceño reiterated the point that they are hesitant about increasing the controlled price of sugar because they realize that “many Belizeans are going through a difficult time because of the high cost of living …”
Sugar Commission of Inquiry not yet constituted
The addendum to the commercial agreement between BSI and BSCFA, which was signed on January 8, 2024, speaks to an Inquiry being conducted into the sugar industry. However, the Commission has not yet been constituted. Based on the timelines set, its work must get underway by the week of February 5th. Today, the Minister of Agriculture said that they have names from Mauritius, but ASR has said it wants to add two more people to the “cocktail of experts.” The Minister says they are awaiting the names, as they need to move on. He said a chairman for the Commission is about to be named.