Cane Farmers Want More for Bagasse

Oscar Alonso

Along with a proposed change to the formula of payment, sugar cane farmers are also looking to negotiate the price they are being paid for baggase, the waste product of the sugar cane used to produce electricity. C.E.O. Alonso asserts that the mill has made in excess of one hundred and forty million dollars on electricity sales to the national grid.

Oscar Alonso, CEO, BSCFA

“Even though we have seen that between 2009 to two 2020, BelCogen has sold seven hundred and ten million kilowatts of electricity to BEL, at over a value in excess of a hundred and forty three million dollars. And, based on the current agreement, they are paying us for that baggase they get form us, a price for the last crop, we got forty two cent based on the formula in the agreement, which we feel is not, does not reflect the reality of the revenues derived from the sale of electricity, because, that price derives from the price of sugar cane. And, we have told them yes cane produces sugar, therefore that price can be paid based on the price of the sugar. But, the baggase produces electricity, so that should be paid based on the price of kilowatt hour that is sold from the electricity produced from that baggase. When you compare it to what they actually pay us under the current formula between 2015 to 2020, we only received a little over three million dollars as payments to the baggase, compared to the hundred and forty six million dollars they have been receiving from Belize electricity Limited.”