BSI/ASR is hoping that this new pricing structure will be the end of the adversarial relationship with BSCFA.
The management of the Tower Hill Facility told the media today that they hope that with the proposed retirement of the net strip value, more constructive conversations could take place with the BSCFA:
Malcolm "Mac" McLachlan - VP, International Relations, ASR/BSI
"I think we're meeting the requirements and the suggestions of the Government in that regard, and we're very much looking to have a constructive discussion with BSCFA on the way forward. We do not appreciate the adversarial relationship which we have been in with that particular association for many years. We don't think it's constructive or necessary, and that kind of relationship can have a very negative impact on our ability to invest further in Belize."
"What I think we mean by "adversarial" is that we believe that a lot of misinformation is utilized at times to misinform farmers about what we're trying to do here. We have a real strategy. We've invested 300 million dollars in Belize. We've made some fundamental improvements to the mill. We've increased the throughput of cane by 26%. We've increased the average milling rate by 37%. We've increased the average sugar that we produce by 46%. That's the basis on which farmers are paid, on sugar produced. And yet, every time, we end up talking about the future, talking about that strategy, talking about how it can benefit everybody, it seems that from one association, that the only real intent is how they can take more value from the mill, rather than looking at how, in fact, we can all work together to grow the pie. And, I'll give some examples of that. Although the cane price has fluctuated over the years, because it's basically aligned to the global sugar price, and that goes up and down. Even in times where the price has been higher, even as a result of Fairtrade premiums that come back to farmers, which should now account for more than 100 million dollars - it's not small change - we haven't seen any real improvements - or very few improvements in the cane productivity in Belize, no real improvements in efficiency, and the reduction of the cost, say, of harvesting and delivery. These are some of the highest, if not the highest in the region, and the yields in Belize are perhaps some of the lowest. And yet, the focus of conversations always seem to be on the mill, what the mill's doing, what the mill could be giving more, instead of looking at the whole totality of what needs to happen to make this a truly viable, profitable industry for everybody."
Shawn Chavarria - Director of Finance, BSI/ASR
"What we're seeking to do is achieve objectives, I would say from the 3 main stakes-holders, from the BSCFA, trying to overcome this adversarial relationship, which seems to be attributed to the whole concept of net strip value and trying to move away from that, going to a more simplified approach - from our end, ensuring that the mill is no worse off by going to a new payment structure, and from the government's end, to ensure that there is no disruption to the crop, that we have a successful crop for the upcoming year, and that we find ways to ensure that all farmers will be able to deliver their cane."
They tell us that they have developed a positive working relationship with the other 3 cane farming associations. Long-term commercial agreements have already been finalized with those other business partners.
