Cane farmers protest for increased subsidy
In recent years the growth areas in Belize’s economy have been products like citrus, bananas and shrimp farming… not to mention tourism. But there was a time not very long ago that the nation’s survival began and ended with one word: sugar. Today, despite some recent setbacks, sugar is still a huge business and vital to the national economy. But, as Janelle Chanona reports, all is not well in cane country.
Janelle Chanona, Reporting
Today, cane fields in the northern districts of Orange Walk and Corozal are being cleaned and prepared for the new crop. But this serene scene belies the turmoil brewing within the sugar industry. This morning, cañeros from the Corozal District marched in protest…angry about current cane prices.
According to the farmers, last December the estimated price per tonne for this year’s crop was so low they could not even justify harvesting the cane. The situation forced a meeting between Government, Belize Sugar Industries and the cañeros. The farmers asked for a first payment of thirty-four dollars to meet operating costs, increasing the price per tonne estimate to forty dollars. B.S.I. agreed to adjust the estimates, but based the new figure on several assumptions.
Albino Vargas, Belize Sugar Cane Board
“That the Belizean people would consume more sugar locally, that the Euro would strengthen a bit from point eight-nine to point eight nine-five to the U.S. dollar and that the world price would go from six point five cents U.S. to seven point five cents U.S.”
But none of those things panned out, pushing the price down to just over thirty-seven dollars. But the farmers didn’t panic yet, because they had understood that government had promised that if the price estimates were off, they would put up the money to meet the forty dollars per tonne expectations.
Albino Vargas
“At that time the Prime Minister committed himself, since we were basing himself on assumptions, the Prime Minister committed that if the projected price of forty dollars was not attained, then the Government of Belize would assist the industry with a million dollars. As it turns out the price did not…we did not achieve the forty dollars per tonne.”
But now those farmers who budgeted on forty dollars a tonne are feeling the pinch.
Amadeo Che, Cane Farmer
“He mek us start delivering cane to the sugar factory and right now as we see it, government is just lying.”
Che, and other farmers, say they wouldn’t have started the season for anything less than forty dollars a tonne.
Amadeo Che
“If the acre of cane just gives about forty or thirty tonnes of cane, that is just a little low. When you put fertiliser and all that, that’s why it cost about five hundred dollars for an acre. And you have to consider that sugar cane needs at least nine to twelve months so that you can harvest. If you can’t harvest the cane you can’t sell it, you have to wait longer and money is short.”
With world market prices not likely to increase dramatically and the duration of protected markets in doubt, some cane farmers are bracing themselves for hard times.
Alex Mendez
“No will continue the cane farmers, cutting cane.”
Janelle Chanona
“You will find another line of work?”
Alex Mendez
“Stop that. Stop the cañeros doing that job. That’s all I want to tell you.”
That isn’t exactly what Ramiro Ramirez, Chairman of the Corozal Cane Farmers Association is advising his fellow farmers to do, but he asking them to tighten their belts.
Ramiro Ramirez, Chairman, Corozal Cane Farmers Assoc.
“We have to be very realistic that this government is helping this industry too much. Because we get the fuel subsidy of more two million dollars and now we’re getting another million dollars. So the farmers are discontented because of the forty dollars, but let us retract a little bit of this three million or more.”
“We need to curtail a lot of expenditure, especially on freight. We know that we could do it and me personal I’m saving right now because I have three big trucks and I see the difference, but they don’t want to do it so it’s not my fault.”
Janelle Chanona
“But can everyone afford to invest in that sort of way?”
Ramiro Ramirez
“This is business and they have to look at it like a business not like they are usually, like cañeros. They need to make up their mind that they have to curtail. If they spend more money on certain things, they have to curtail that’s how they could survive. Especially the small farmers.”
One option the farmers are hoping to tap into is the Sugar Price Stabilisation Fund, but the Belize Sugar Cane Board is advising caution.
Albino Vargas
“At the last time we checked on it, the Sugar Price Stabilisation Fund had some two point three million dollars. This is invested in government bonds and the Government of Belize is looking into the possibility of getting some of these funds from the S.P.S.F., however it would be unwise to deplete the funds totally. We do not know that the situation would be like next year.”
With next year in mind, the farmers have asked for another meeting with government next week to try to patch things up in the sugar industry. Reporting for News 5, I am Janelle Chanona.
The troubles in the sugar industry have broader national implications, as there are plans by B.S.I. to construct a large co-generation plant to produce electricity from cane waste known as bagasse. Without a guaranteed supply of cane there will be a shortage of bagasse, thus hampering the feasibility of the proposed power plant.
