B.S.I. Says It Cannot Afford to Pay More

Mac McLachlan

A.S.R./B.S.I. says it has become evident to the company that the Association wants more money from the mill for sugar cane at a time when the mill says they cannot afford it. A.S.R./B.S.I.’s reluctance to sign an interim agreement to their Commercial Agreement is rooted in the position that the company is not in a position to engage in any discussion about increasing what the farmers make.

Mac McLachlan, VP International Relations, A.S.R./B.S.I.

“It has become clear to us that it was stated to us quite clearly that what B.S.C.F.A. wants is more money from the Mill. And, at a time when the mill is investing in value added products, in a Port Facility in Big Creek that is going to reduce the cost of freight. The farmers will share that advantage. There is nothing to give. And, that is why it is very difficult for us to consider anything like an interim agreement. There will be no point that will be simply pushing this whole issue down the track and ruin another crop next year.   There objective is not about moving away from Net Strip Value and sharing of cost, but really about transferring value or getting paid more for cane from BSI to B.S.C.F.A., which we have stated from the very beginning, is not an option for us. We were certainly prepared to look at a simplified structure for paying cane, where the mill is no worse off. But if we go down a tract where they are looking to significantly transfer value, which is something we just cannot do.”