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Sugar tensions spike despite PM’s truce efforts

HeadlineSugar tensions spike despite PM’s truce efforts

ORANGE WALK, Wed. Dec. 29, 2021– There were sighs of relief among various stakeholders in the industry when it was announced late last week that a truce between the Belize Sugar Cane Farmers Association (BSCFA) and ASR/BSI had been brokered by the Prime Minister, Hon. John Briceño, and that trucks loaded with cane would start arriving at the gates of BSI on Monday, December 27 — a week after the scheduled start of the season. BSI had issued a press release applauding the Prime Minister’s move, which included the issuance of a directive that all parties proceed with the milling of this season’s sugarcane under the current agreement, and that an interim agreement which would last until April be signed by the parties. The BSCFA had even indicated that they would proceed with the start of the crop and that they were looking forward to signing an interim agreement “in the manner proposed.” The association had reportedly even cautioned its members not to withhold any portion of their crop or do anything that could cause disruption to the scheduled deliveries. And so the first few trucks started delivering cane to BSI’s mills on Monday of this week, and hopes were, for the briefest of periods, high.

But it has now been reported that the proposed interim agreement between BSI/ASR and the Belize Sugar Cane Farmers Association has still not been signed onto by the parties, and now there are signs of what could become a physical standoff near the entrance of the BSI mill. Indeed, indications are that, after a moment of calm following an apparent resolution of the impasse in the sugar industry, the volatility in the sugar belt is now increasing by the minute. Much of the unraveling of the truce can be traced to one particular area of concern that the BSCFA outlined last week: the expiry date of the interim agreement. That association, to which 67% of cane farmers belong, objected to the Prime Minister’s proposed April 20, 2022 date for the expiry of an interim agreement and stated that there was a risk that, subsequent to that April 30 deadline, if no agreement has been reached, their members would no longer be able to deliver the remainder of the cane in their fields. The BSCFA is thus proposing that the end date for negotiations, and duration of the interim agreement, be extended until August 1, 2022. They stated that they had been proposing this date to BSI/ASR since December 13, and the mill has “unhesitatingly rejected” the proposal each time.

BSI appears to still be unwilling to add three more months to the period of negotiations. In response to that unwillingness on the part of the millers to adjust the expiry date of any interim agreement, the BSCFA has refrained from signing any agreement, and has suspended its delivery of sugar cane. Trucks loaded with sugar cane were lined up at the mill today but were parked, one behind the other, blocking the ticketing booth.

The cane farmers were, according to some reports, using their trucks on the second day of the reopening of the crop, to block the entrance and exit of the compound. The rising tension in the sugar belt is of concern, since a previous standoff in the sugar industry in February 2009 had resulted in the death of a 44-year-old man, Atanacio Gutierrez.

At this time, BSI/ASR is stating that they are willing to sign the Prime Minister’s proposed interim agreement, with the April 30 end date, immediately, and that they will be ready to resume negotiations on the new commercial agreement as early as next week. Those discussions will involve outlining a new cost-and-revenue-sharing structure with the BSCFA. Reports are that BSI/ASR has already issued an amendment to the current commercial agreement extending it to April 30, in line with the Prime Minister’s proposal.

The BSCFA, on the other hand, has reportedly sent a letter to the Prime Minister and Minister of Agriculture requesting a change to the expiry date of the interim agreement to August 1. They said that ending the negotiation period on April 30 could create an even more “volatile situation” since, if an agreement is not reached by then, farmers will cease being able to deliver cane in the middle of the season. If an agreement is not reached by April 30, a significant amount of sugar cane could be left in the fields or unprocessed (unless farmers sign individual contracts with BSI), which would result in a huge loss to cane farmers.

The current commercial agreement between BSI and BSCFA ends on January 19, 2022. If an interim agreement is not signed by then, cane farmers who belong to that association will not be able to deliver their sugar cane to the mill.

It had been reported that Agriculture Ministry representatives attempted to negotiate yesterday with the BSCFA and BSI, but it seems that no resolution was achieved during those talks.

Late this evening, PM Briceño told local media that he and Agriculture Minister, Hon. Jose Mai had a long discussion today with the leaders of the BSCFA and BSI but a final resolution has not been reached as yet. In his interview he said, “I’m trying to find a compromise on the proposed letter that I sent to both BSI and the cane farmers association. We have made progress, but we will that we will be able to finalize an agreement tomorrow. So what I’m prepared to tell you now is that the cane farmers’ leaders have agreed that they are going to ask their membership to remove the barrier in front of the factory. BSI has given assurance that they will not receive any cane for the next 24 hours and that if we sign an interim agreement tomorrow then they will start receiving cane from cane farmers on Friday at 6:00 a.m. “

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