Outlook for sugar is troubled
Sugar has been counted out more times than the Chicago Cubs; not bad for an industry that in 2003 still brought in more money than any other crop. Today in Orange Walk Town News 5’s Patrick Jones attended a gathering that looked at the future of king cane and found–not surprisingly–that its crown is in need of polish.
Patrick Jones, Reporting
The 2004 grinding season at the Tower Hill factory is in full swing as the sugar industry is aiming for production of one hundred and twenty thousand tonnes of the sweet stuff this year. But there are dark clouds gathering on the horizon and Director of Sugar Industry, Albino Vargas, says now is the time to prepare.
Albino Vargas, Director of the Sugar Industry
“What we’re trying to do is sensitise stakeholders of the real challenges, the real situations, and at the same time the opportunities that confront our sugar industry.”
And one of the biggest challenges comes from half way across the world. Sugar giants Brazil, Thailand, and Australia have challenged the European Union’s preferential tariffs at the World Trade Organization. Minister of Agriculture Servulo Baeza says things don’t look good right now.
Servulo Baeza, Minister of Agriculture
“The speed with which its being dealt with, we could be seeing changes in terms of losing of our preferences within the next eighteen months, which is right around the corner. And some of these changes that we need to do take more time than that in terms of varieties and changing our fields and changing our way of doing things.”
One of the changes Vargas says that can put Belize on a more solid ground to compete globally has to be made, not in the board room, but out in the fields.
Albino Vargas
“One of the main and more serious challenge is the low productivity at the field level. This is compounded by the licensing or the quota system. The quota system basically is stifling investment in that a lot of people may have the potential to increase their productive capacity, but if we continue with this system of allowing them only what their quota can hold, then that really does not augur well for investment.”
Of course alternative crops are always an option, and Baeza says another reality is that cane farmers cannot continue to expect subsidies from government.
Servulo Baeza
“The government is committed to supporting the cane farmers. But again it is something that is unsustainable. So what we are doing presently is starting to speak to them and telling them that we need to do these changes. Government is helping you right now, but this cannot continue forever. And we’re putting in plans for instance to start phasing out the support that we’re giving the cane farmers because it unsustainable. Nobody can do it forever and ever.”
Albino Vargas
“Any other source of income is welcome. We should not say that sugar is on its way out. Although there are challenges, this is an opportunity for the sugar industry to reassess itself, restructure itself and strengthen itself. But at the same time yes, we need to supplement our incomes with other sources of income, other economic activity that we can lay or hands on.”
Vargas says the industry needs to start looking at itself as a business and apply the same management practices that have made other ventures successful. A move, which Chairman of the Sugar Cane Quality Control Authority, Helen Reynolds Arana, endorses.
Helen Reynolds Arana, Sugar Cane Quality Ctrl. Authority
“One of the things that we are hoping to do to use as an incentive is using core sampler. I’m sure you have heard about the fact that the people in the citrus industry now pay those farmers based on the quality of fruit that are delivered. Similarly, we are proposing to move to a similar situation where we would sample the cane delivered by the farmers, and farmers would be paid for the quality of sugar delivered in the cane. That then will be the incentive to the farmers to do the necessary improvement at the field level to ensure that cane burnt is delivered on time.”
Alfredo Ortega, Management Committee, B.S.C.F.A.
“We are from long before asking all groups, government, the sugar board, now called Sugar Industry Control Board that technical assistance has been one of the necessities from long before for the farmers. This is one of the points that has brought farmers to the position we are right now because farmers have not been getting sufficient technical assistance needed for the cane fields.”
Patrick Jones
“So you believe if you get that technical assistance you can compete on the world market?”
Alfredo Ortega
“Surely we can compete because we will have better yields, we won’t be throwing about unnecessary fertiliser, unnecessary herbicide. All would be done according to the prediction of a technical assistance to farmers.”
Baeza says constructive dialogue such as today’s symposium go a long way in ensuring that every one is singing from the same hymn sheet as Belize braces for bad news from the W.T.O. Patrick Jones for News 5.
Vargas says the plan now is to hold consultations in the various communities in the sugar industry to inform everyone of developments on the international fronts that will impact our sugar sector.
