The Prime Minister, Hon. John Briceno, is hoping that the parties reach some resolution by Wednesday in order to get the sugar crop started by the end of this week.

by Marco Lopez

ORANGE WALK, Mon. Dec. 19, 2022

The Belize Sugar Industries Limited (BSI/ASR) and the largest cane farmers association in the country, the Belize Sugar Cane Farmers Association (BSCFA), are currently still in mediation over a new commercial agreement, and to end an almost year-long impasse between the parties. No resolution has been finalized as yet, despite the numerous sessions. The final day of mediation was scheduled to take place last Thursday, but the sessions were extended into the weekend and likely continued today.

Prime Minister John Briceno, when interviewed by local reporters, said that the parties have indicated their commitment to the mediation process until a solution to the impasse is found. The ideal solution, according to the PM, would be the signing of a new commercial agreement between the parties.

The sugar crop, which was to begin as early as today, has once again been delayed, and the government is thus at this current juncture — at which consultations with both parties are ongoing in an effort to find a set of mutually agreeable terms to break the stalemate.

“The ideal is that they can come up with an agreement, but if that were not to happen, then we’re hoping that we can have BSI roll over that agreement so that they could continue in the old agreement once the mediation/ negotiation go through…,” PM Briceno said.  

It must be noted that at this time there is no commercial agreement between the BSCFA and BSI. In January of this year, the previous commercial agreement between the parties expired. It was merely an interim agreement that was signed between the parties at the height of the impasse last year, strictly to get the crop started.

That interim agreement was to hold over until the parties signed a new commercial agreement, but over this past year, very little progress was made to that end, with efforts only ramping up in recent weeks.

There have been calls in some quarters for months for the government to intervene, with some saying that the hands-off approach taken by GoB would be to the detriment of the farmers.

In his remarks made on Saturday, PM Briceno said, “ …we may have as a government in consultation with the association and BSI to maybe come up with some other mechanism that can bring some sort of finality to this to have an agreement that would be fair to everyone, fair to the farmers, and also fair to BSI.” 

And while some may consider government’s involvement to be a knee-jerk reaction to ensure the start of the sugar crop, one of the single most lucrative cash crops in Belize, the PM said that intervention would likely lead to legal proceedings from either party if they are aggrieved by the decision of the government.

“The problem with intervening is that, if we were to rule in favor of the farmers, BSI will take us to court. If we rule, or do something in favor of BSI, the farmers are going to take us to court, so the government has to be very careful,” PM Briceno said.

He is hoping that there is not a repeat of the blockade and tense impasse that took place last year, and hinted to local media that they have called on police to ensure that there is no blockade at the factory, in order to make sure that members of the other cane farmers associations not in contention with the mill, can deliver their produce.

“I am hoping that we do not have a repeat of what happened last year December. We’ve already spoken to the police. For one reason or the other, if the farmers feel that they need to go and protest, that is their right. All we’re asking them is not to damage property and to allow the other farmers to be able to deliver, so that all we can ask, we can ask for calmer minds to prevail,” the PM said.

A newly appointed Sugar Industry Control Board was to set the date for the start of the sugar crop over the weekend. It has been reported that December 27 has been tentatively set as the new starting date if an agreement is signed. (Following an emergency meeting on December 17, the chairman of the SICB issued a notice which stated that “The Board has passed a resolution that the 2022-2023 crop start date is December 27, 2022 with the proviso that BSI and BSCFA sign a Commercial Agreement”). When both parties meet in consultation with the SICB and a date is set and gazetted, then the sugar crop for 2022-2023 can legally begin.   

While the BSCFA represents the association with the largest number of cane farmers as members, there are other cane farmers associations with farmers who are in good standing with the mill, BSI/ASR, and are willing to start the delivery of sugar cane. BSI/ASR indicated its desire and preparedness to start milling the crop today, Monday, December 19.

PM Briceno has his fingers crossed that a resolution can be found so that the new season can begin this week. Over 5000 residents of the northern districts of Orange Walk and Corozal depend on the yearly Zafra, which is a prime source of much-needed economic activity in the region.