And, once again, the bagasse issue is a big concern which the Belize Sugar Cane Farmers Association wants to put on the table for renegotiation. They say that farmers didn't get as fair a deal in the 2015 agreement for that bi-product. As viewers are aware, the mill's BELCOGEN facility uses bagasse to generate electricity, which is then sold to BEL.
Here's what the BSCFA's representatives had to say this morning about their bagasse concerns:
Oscar Alonzo - Executive Director, BSCFA
"There has been a growing, worldwide recognition of bagasse as a bi-product that has greater economic and financial value. At the time when we were negotiating the 2015 agreement, the argument was that bagasse was a waste, had no value, and therefore should not be attributed any value for its use. Well today, there are various organizations - even Fairtrade has urge parties to engage in negotiation in order to obtain fair treatment and payment for the bagasse that is utilized."
Andy Westby - Vice-Chair, COM, BSCFA
"At that time, the BSI formulas that they have on the bagasse are tied to the sale of sugar, which, on our side, the bagasse should be tied to the sale of electricity. So, at that time, that caused the impasse, and we asked the government to intervene, to bring in a technical person to identify or to determine a justified formula for the payment of bagasse. Now that the opportunity arose again today on the agreement, we want to revisit so that we can have clarity once and for all on that formula of the bagasse, to justify a good payment for our cane farmers."
Reporter
"The mill has indicated that in order for there to be a change in the payment of bagasse, the power purchase agreement would need to be amended. Basically, they're saying that a value must be placed on the bagasse for it to become a part of the equation that leads to the tariff that is paid for electricity."
Oscar Alonzo
"We appreciate their comment on that situation, but as I mentioned before, all they do is mention what it is that cannot be done. They provide disclosure. They do not disclose the proper information for us to look at in order to verify if what they're saying is actually so. We would need to see that power purchasing agreement in order to agree with what they're stating. And in that case, we could sit down and try to devise ways that if it needs change, how it can be changed, or to find some other way in which compensation could be provided to our members for the use of the bagasse for the payment through the sales of electricity."
