Earlier this week, you heard from BSI/ASR about their record breaking prices, which led to a historically high final pay out. While it looks good on paper, the reality is that a decreased global production of sugar cane led to increased world market and local prices.
But are those decreases driving a shortage on shelves? He explained why it may be harder to find sugar at the grocery store.
Servulo Baeza, CEO, Ministry of Agriculture
"The price for sugarcane worldwide this year was very good. The reason being really that there's a decrease in production throughout the world, there was a decrease in about 30% of production. That made the price of the commodity grow up."
"I think the forecast for this coming year is almost the same. So you're looking for, I would say good prices, maybe next year also. There are still, I would say, unresolved issues between the BSCFA and BSI."
"For instance, this month here, the extended commercial agreement that they had is coming to an end, so they have to renegotiate now another, an extension to that commercial agreement. We have still not seen that they have been able to get to a place where they feel both of them feel comfortable, that they are getting the best deal."
"So we will be having some meetings right now in the very near future with both of them, trying to see how we can try to get to that point, where both feel that they are getting the best deal. I certainly think that BSI has uncertain things to try to help, moving some of the transportation from Belize City to Big Creek in terms of being able to ship out, but we need yet to see how that translates to a better price."
"I mean, whilst they claim that it's helping, we need to really see if that is the case. But right now, I think in terms of the price that we're getting right now, it's being attributed to the increase in the worldwide market price right now."
"Sugar cane, tends to fluctuate, so you have some years that are bad, some years that are good, and we're at that point right now that's good."
Reporter
"Does the decrease in production affect our shelves here in Belize?"
Servulo Baeza, CEO, Ministry of Agriculture
"The issue with that is not our local production, I would say. We consume about 12,000 tons of sugar came from that we need for our local consumption. The problem is that Mexico and Guatemala their prices are like two to three times higher than ours and so the tendency for people to go into the business of buying our sugar and selling it across the border and then that is what causes and the shortage on our shelves."
"But I know that BSI has taken some measures in terms of trying to ration it and to make sure so that we don't provide that incentive but it's difficult. You know it's difficult to control contraband coming in and it's difficult to control well us selling sugar well you know people going into that business because incentive to make a profit is there."
BSI has been asking for government to approve an increase in sugar prices which would discourage smuggling. Government has not replied favorably.
