The sugar season turned out not to be a disaster – thanks in no small part to the delayed rains. But both the farmers and the factory owners are still at an impasse on bagasse. And while we had the opportunity, we asked Ortega to explain the cane farmer's perspective on the failed negotiations with BSI/ASR on a payment for bagasse.
Last night we showed you how BSI's Chief Finance Officer explained their formula to arrive at what they believe is a reasonable payment for bagasse. The trouble is that the Association's representatives keep rejecting their offer.
Ortega explained to us that based on their formula on how bagasse is treated in the region, BSI's offer is a "slap on the face" of the cane farmers:
Alfredo Ortega - Vice-Chairman, Committee Of Management, BSCFA
"We in the association are not ready to accept because we quite know from information locally and abroad, that the price per tonne of cane for bagasse should be not less than $4.50. So, that's why we had that our negotiations should not start with less than $4, and that's where we are at this point. They have come with their formula, and they have said that that is what they want us to use, and it's take it or leave it."
Daniel Ortiz
"51 cents as compared to $4 per tonne of cane, it's seems to be a huge disparity, a huge difference in opinions. Do you see both sides coming to an agreement where you reach a middle ground, maybe like around $2?"
Alfredo Ortega
"Well, we are looking forward to something above 51 cents, because we clearly know and understand, and it has been advised to us by our expert. We'll be holding a general meeting with the farmers around July 20, at which, we will be presenting to the farmers what we have, where we have reached in the negotiations, what has been presented to us, and from there, we'll listen from them about what will be the way forward. It is true that BSI has come with 51 cent. It's better than a full no that they had before, but even that 51 cents is a slap in the face of the farmers. We're looking forward to get a better price on it. Yes, we have reached almost to the end of the crop, and we on the association's side, we have fulfilled our promise to BSI, on which we signed on not to take industrial action during the course of the crop, and we have done so. There are certain things that as an industry we need to hold hands and carry on, but we first need to clear off our differences in regards to benefits, because they are the ones benefitting presently hundred percent on the use of the bagasse as a by-product. The farmers are not getting anything. So we need to clear that portion first. Because how is it that I can walk with you hand to hand when you are trying to hold my hands and slap me with the other hand?"
A part of the reason why the cane farmers keep rejecting BSI's counter proposal is that is based on the premise that factory hasn't been making the profits needed to balance their investment to get the bagasse processing done. Ortega says that the BSCFA has made repeated requests to see audited financial statements from the company to back that claim up, but they haven't been provide any such statement as yet.
