While the Millers don't want to extend this current agreement, they believe that they have come up with a compromise that could work for the Belize Sugar Cane Farmers Association. They say that it's based on the association's proposal to change the pricing structure and payment for sugar cane deliveries.
As we told you, BSI/ASR asserts that among other changes that the BSCFA is pushing, they want the mill to take on all the costs for logistics, production, and exportation of sugar. All those additional fees and deductions are detailed in a part of the current agreement known as the Net Strip Value.
Oftentimes, the farmers disagree about that list of charges; some even go as far as to suggest several of them are unfair. Well, the company says that they are proposing a far simpler pricing model, which is a complete departure from the net strip value. Here's how their lead representatives explained it to the media today:
Shawn Chavarria - Director of Finance, BSI/ASR
"What, essentially, we've agreed to do is come up with a new cane payment structure on the basis of what BSCFA is proposing, to move away from the net strip value. So in a sense, this is their concept that they have presented. And so, what we're agreeing to is to discuss and agree [on] a new cane payment structure on their concept. So, it is, in a sense, negotiating or coming to an agreement on what they're proposing. We're doing that on the basis that we will be no worse off. It achieves their objective of moving away from having to explain costs and providing all the detailed information and support, and then still ensuring that we find a way that farmers are not disadvantaged, that come the 19th of January, if we still can't sign an agreement, we'll find a way for individual farmers to have an opportunity to deliver their cane. But, because we're moving to what we see is a hopefully much more simplified approach, we feel that we can sign a long-term agreement with the BSCFA before this date."
Malcolm "Mac" McLachlan - VP, International Relations, ASR/BSI
"And we're looking for a win-win in this outcome."
"I don't think there's any risk to the crop in any way, but alternatively, if for whatever reason that hasn't happened, while we're not prepared to extend the existing agreement as has had been suggested - and I can go its some rationale for that, we will ensure that we put in place measures to be able to receive farmers' cane on the basis of individual contracts, if agreements can't be reached through associations."
