Photo: BSCFA protest through main streets of Orange Walk Town
BSCFA peacefully protests GoB and BSI; members abstain from cane deliveries
ORANGE WALK, Thurs. Dec. 28, 2023
Hours ahead of the 10:00 a.m. start of the 2023/2024 sugar crop season, Belize’s largest cane farmers association, the Belize Sugar Cane Farmers Association (BSCFA) was meeting with union leaders who represent the ten units of the National Trade Union Congress of Belize (NTUCB) to galvanize support. The meeting started at 2:00 p.m. on Wednesday at BSCFA headquarters in Orange Walk Town and did not conclude until after 6:00 p.m. when Dean Flowers, the President of the Public Service Union (PSU), confirmed earlier reports that a permit had been granted for the BSCFA to protest today. He said that only union leaders would attend due to short notice. A joint release from the BSCFA and the NTUCB issued after their meeting informed that, as it relates to the current sugar impasse up north, “a consensus was reached on the way forward to ensure a collective approach and strategic actions in response to issues affecting BSCFA, the NTUCB and its affiliates.”
A separate statement to BSCFA members called for their participation in a peaceful demonstration leaving from BSCFA’s office at 9:00 a.m. The Association affirmed that they would not deliver cane today. Despite requests over the weekend, they had not received any favourable response from the Prime Minister that he, as maximum leader of Belize, “exert his authority to request from BSI to sign a Commercial Agreement with BSCFA for this crop year 2023/2024 with the same terms as last year since it would only be formalizing its already public Open Agreement offer to BSCFA members.” The Association had been issuing messages to its members during the long Christmas weekend asking that they remain firm and resist the attempts of the miller, Belize Sugar Industries (BSI) to break up the Association. That’s because on Friday, December 22nd, BSI had issued a press release notifying that all cane farmers, including those from the BSCFA, could deliver cane come the start of the crop, despite the fact that their Association does not yet have a signed commercial agreement with the miller. What BSI proposed instead was for the BSCFA members to operate under a binding open agreement which would not require any signature, “just the delivery of cane.” The company informed that the open agreement would be posted at all entrances, and BSI staff would be present to answer any questions. However, it contended that the open agreement provides for the purchase of sugar cane on the very terms under which the previous crop operated. BSI also explained that if the two parties sign a commercial agreement during the new crop, then that agreement will immediately replace the open agreement. While BSI called it a short-term solution that would facilitate the smooth start of the crop, ensuring deliveries from BSCFA members, BSCFA said it would immediately turn its members into individual cane farmers.
Notably, at the same time that BSCFA was starting its meeting with the unions on Wednesday, BSI was holding a press conference where it rejected the notion that it is trying to break up the Association. BSI’s Director of Finance, Shawn Chavarria declared, “If anything, it’s an arrangement to try to break the deadlock.” Chavarria recognizes that it would be detrimental not to have the BSCFA’s 3,000 members deliver their cane, and says that at no point are they asking cane farmers to resign from the BSCFA. According to Chavarria, while the Cabinet Sub-Committee on Sugar did reach out to BSI after meeting on December 13 with the BSCFA, he says the feedback they are getting is that the two sides are moving further apart, because “six weeks ago, when we spoke with the Sub-Committee, BSCFA was willing to do a two-year agreement. We were at four. They (the Sub-Committee) indicated that they could probably persuade them (the BSCFA) to agree to three years, and so we agreed. We reduced the number of years from 4 to 3 years. And now, the BSCFA is down to one year. And not only that…They want us to back-pay two years of Fairtrade premiums, and they want us to become the conveyor.” Chavarria says the Fairtrade premiums claimed by BSCFA work out to about $3 million per annum. He responded that, while they did get the letter from the legal advisor of the BSCFA regarding Fairtrade regulations and agreements, their position stands: that it is Tate & Lyle, as the buyer and marketer of Fairtrade sugar, who should pay the premium. He additionally noted that, rather than seek agreement with Tate & Lyle for them to reinitiate Fairtrade premiums, the BSCFA seemed to hope that legislation passed earlier this year by the Government would have forced BSI to pay the premiums. Chavarria says that BSI is challenging that legislation in court, and the challenge is expected to be heard next year. He reported that the other three cane farmers associations signed their Fairtrade renewal with Tate & Lyle last week, and said that the arrangement is open to the BSCFA as well. He said that the reason why BSCFA did not get a Fairtrade contract for the past two years was due to the blockade they staged at the mill for the 2021/2022 crop season which “went against Fairtrade principles of upholding the law and trying to foster a better and more collaborative relationship.”
As to negotiations for the signing of the commercial agreement which have now been running for about three years, Chavarria expressed frustration at the politics that forever seem to be at play in the sugar industry. He stated, “There is a sense of fatigue that is taking place. We seem to be stuck in this groundhog-day scenario where we give the same interviews the same time of the year … and we just think it’s time to move on. There’s really no reason why we should not have a long-term agreement with the BSCFA in place … we’re living up to our commitments as a company. I think it is really time that others do their part to try to move the industry forward. As I said, we’re really one of the few industries that are doing well at this stage. I think the Government does recognize that. Perhaps, rather than putting pressure on us, perhaps there should be pressure going the other way to encourage the Association to sign a longer-term agreement.”
Former UDP Minister and cañero, Hugo Patt shared his opinion that if BSI yields in giving one association an increase in the cane price, it would have to apply it to all the other associations.
On Wednesday, Chavarria reported that farmers from three Associations had already started burning cane, and he expressed the hope that their right to deliver cane is respected. He shared that law enforcement authorities would have checkpoints and patrols in place so that there are no roadblocks preventing farmers from delivering their cane.
Chavarria also clarified that they will follow the cane farmer register that is already in the system. He explained that BSCFA members are expected to deliver at their same times and in their same groups; and if there is low delivery in one group, the next group will be called in. He said the mill could get started with deliveries from the other associations’ groups and BSI’s own cane.
The way it played out today, about 100 members and a few unionists participated in the demonstration through the main streets of Orange Walk Town. They marched in front of the home of Prime Minister, Hon. John Briceño with their placards and police escort, and there were no disruptions. The mill opened promptly at 10:00 a.m. with the sounding of the horn. Test groups from the other associations were prepared for delivery, though Cosme Hernandez, the General Manager for the Progressive Sugar Cane Producers Association, reported that there was a low turnover. He said that was “because a lot of the group leaders were concerned when it comes to the security – the road safety and things like that,” but that after seeing “the response from the Government … security outside on all major roads,” he said he believes that test groups will come out in full force on Friday. For their part, BSI’s Chavarria and Vladimir Puc, the Chairman of the Corozal Sugar Cane Producers Association, expressed gratitude that the crop has gotten underway. Chavarria remarked on the multiple police patrols and checkpoints along the highway, calling it a good signal that the Government “will do its part to ensure the rule of law is upheld, and that they can deliver their cane without any interruption or disruption.” He noted that they will start milling at 50% capacity with only one boiler, and expressed hope that the BSCFA members will show up soon enough, or that an agreement is signed with the BSCFA. Puc clarified that it’s not only three years, but rather almost 10 years that there has been an attempt to have an agreement signed between the BSCFA and BSI. He said it was that same rift that caused the split of the BSCFA.
When the time came for BSCFA test groups to deliver cane at 3:00 p.m., no one showed up, as they heeded the call of their leaders and did not even burn their cane in preparation. However, reports are that this may change on Friday.
At the peaceful demonstration this morning, Elvis Reyes, the Chairman of the BSCFA shared that they are still waiting on the Prime Minister to intervene, and said they were only receiving communication from Minister of Agriculture, Hon. Jose Mai. A deadline of midday to hear back from the Prime Minister came and went with no communication. However, the Prime Minister along with Minister Mai and other sugar industry stakeholders including Marcos Osorio, Chairman of the Sugar Industry Control Board, were meeting since morning. At around 1:30 p.m., they called in three leaders of the BSCFA to join their meeting, with Mac MacLachlan joining virtually from London. Also participating in the meeting were representatives from Tate & Lyle and BSI. No agreement was reached today, and so the meeting will resume tomorrow.
Reyes today reiterated the Association’s request that a one-year agreement is signed while the commission of inquiry on the sugar industry does its work. Alfredo Ortega, the BSCFA’s Orange Walk Branch chairman said BSI’s position in the negotiations so far has been “what I throw on the table or nothing.” The BSCFA continues to call on its members not to deliver to the mill without a signed agreement. As to the low turnout at the demonstration, Ortega said that some cane farmer families sent only one person to represent them. He affirmed though, “One thing I can tell you, if you go to BSI right now, there is no cane being delivered by BSCFA members. We have our members that they are supporting us. Even we have some members of the other associations that are supporting us … because they clearly understand that what we are looking for is a benefit for our farmers.”