A.S.R./B.S.I. Hopeful Common Sense Approach Will Prevail in C.A. Negotiation

Mac McLachlan

Despite the tension between A.S.R./B.S.I. and the B.S.C.F.A., the management of the sugar mill is still hopeful that a commercial agreement can be signed before the start of the sugar crop. This is despite indications from the Minister of Agriculture that an agreement will not be reached before the end of the year. Notwithstanding the minister’s remarks, McLachlan remains optimistic that in the face of improved sugar prices on the global market, a common sense approach will prevail. But, in the event that that does not happen, A.S.R./B.S.I. will be unable to accept sugar cane from farmers without a commercial agreement in place.

Mac McLachlan, V.P. Intl Relations, A.S.R./B.S.I.

“It is evident we can’t accept cane without a commercial agreement because there will be no way of paying for that cane without a commercial basis on which it could be processed. I think it would be very much unnecessary to get to that point. We might call it optimize, we might call it realism. It is in nobody interest for there not to be a crop, certainly not in our interest, not in the farmer’s interest. We just presented the cane price estimate for next year, which is four dollars higher than the current year that has just past which we have seen has come out with almost record high prices, the highest since we lost the UK preferences in 2017 and fourth highest since 2000. I think what is required; we have basically put before BSCFA a couple of options. One of the complaints that they don’t get proper information concerning the deductions made before the value for sugar is shared. We have offered an independent audit right to them to correct that. That has been rejected as of now. We have said also we can accept their idea of a sixty-forty split, but on that basis we would only be able to pay for sugar based on a raw sugar price which is a published price. It would take all the conjecture out of this situation. I think their position has been well we want sixty percent of the gross revenue, but we don’t want to contribute to the production of those value added sugars and to the freight or anything else, which is where the twenty million dollars come from and on a mill that hasn’t been making money. That simply isn’t credible.”