Will the Next 12 Months Yield a Long-Term Agreement between B.S.C.F.A. and A.S.R./B.S.I.?

Shawn Chavarria

And, while the 2022/2023 crop progresses, over next twelve months the millers and the farmers must once again engage in discussions towards a long-term commercial agreement. Shawn Chavarria, the Director of Finance at A.S.R./B.S.I. is hopeful that achieving a mutually beneficial long-term agreement within the next year is possible.

Shawn Chavarria, Director of Finance, A.S.R./B.S.I.

“As long as there is good faith on both sides to reach a long terms solution, I think it is achievable. One thing the mediation allowed in terms of the process was to allow an opportunity for both sides to really get into the meat. So, I think having made some progress in that effort, we’ll see. We’ll see how this coming year comes and what it brings. And if we can get closer and hopefully reach a long-term agreement, At the end of the day, the economy depends on the sugar cane industry, and we all have stakeholders who depend on it. So, that has to be – in a sense – the priority and the core that we reach an agreement. We avoid these stalemates at the start of every crop that leads to uncertainty because it’s not good for anyone. The mill can’t plan, and neither can the farmers. So, the objective really is to find a way to reach a long-term agreement that is mutually beneficial. Without getting into some of the details of the mediation, from our standpoint, we did put forward some solutions to address the matter of transparency the BSCFA had in that effect. And from our standpoint, we do feel that we have some very credible proposals that are in front of them. But, I think, certainly from the discussions, it has morphed into something that is bigger than just transparency and the numbers, it’s dollars and cents. And I think, at the end of the day, the core issue seems to be that the BSCFA wants to be paid more for sugar cane. And I think that’s where, from our standpoint, we would have difficulty. We’ve explained to both the media and the BSCFA that we’re certainly happy to look at a simplified formula that makes it very easy for the associations to determine the price of cane. But, what we can’t countenance is this massive transfer in value. So, I think if it’s focused more on the transparency, the cost, and trying to see how we can get the BSCFA comfortable with that, then I think that a long-term solution can be achieved.”