Caribbean sugar executives fight E.U. price cuts

The recent decision by the European Union to cut prices paid for sugar sold to E.U. member states by thirty-nine percent over four years will not only cause Belize to lose millions of dollars, but other African, Caribbean and Pacific countries will also be hard hit. Today representatives from the sugar industries of ten countries met in Belize City to see what measures can be taken to face the challenges that lie ahead. News Five’s Jacqueline Woods reports.

Jacqueline Woods, Reporting
Chairman of the Sugar Association of the Caribbean Technologist Committee, Joshua Jaddoo, says while the gathering of all interested parties may be considered timely, it should have taken place a long time ago.

Joshua Jadoo, Chair, S.A.C Technologist Committee
?I think it?s long overdue because we did know that from all the way back in the 90s that in fact something would happen in 2006 with the E.U. market. Finally, this has caught up with us and we are now trying to share our positions in terms of that stage we are at and how do we plan to position ourselves in the next five years to have a continued sugar industry.?

Recently, the Belize Cabinet approved a fifteen-year development concession for BELCOGEN–a company owned by Belize Sugar Industries–that will embark on a co generation project in which bagasse will be used to generate power. The company believes once the plant comes into operation it will provide approximately twenty percent of the country is energy demand.

Joey Montalvo, Managing Director, B.S.I.
?The world is addicted to oil and we are trying to break the tyranny of that addiction. We need to get together in a proactive way to see how we might be able to move along in providing some alternatives. Today we hear about bio-fuels, bio-ethanol, and unless governments give us that support to break the tyranny of oil, and I believe that is taking place ever so slowly but surely. I believe we in the business need to look at ways and means of creating those investment opportunities to bring about the use of alternatives for oil.?

B.S.I. plans for the production of electricity were well received by the participants.

Joshua Jaddoo
?This particular workshop today is about the positioning of the regional sugar industries to face the challenges that are ahead of us. This means that we have to be looking at diversification, we have to be considering the price of sugar in the future, four, five years down the road, the negatives of that or the positives of that, and how do we overcome whatever shortfalls that might arise in our revenues in terms of keeping the industries, making it viable, and for making some money.?

Jaddoo says the Sugar Association of the Caribbean has not yet agreed to the sugar cuts set by the E.U., and as a matter of fact following today?s meeting a report will be forwarded to the S.A.C. board stating the region?s position.

Joshua Jaddoo
?In that we have several representations or representatives who will speak on behalf of the region at a higher level with the Europeans or whichever ministries within governments that they have it inform as to the position.?

Jacqueline Woods for News Five.