Chavarria: A New Commercial Agreement Might Soon Be in Place with BSCFA

There has been a lower supply of over a hundred and sixty-four thousand metric tons of sugar. Chavarria says that the drought in 2019 impacted the 2020 crop significantly, but they believe the lower supply also had more than one contributing factor. Another reason was that some of the fields needed to be replanted. But, he said, the higher prices compensated for the lower cane supply. And as far as that commercial agreement stands, there’s still not one in place between B.S.I. and the Belize Sugar Cane Farmers Association. But Chavarria feels that the discussion on that matter will take centre stage with the opening of the new crop. He also feels that the commercial agreement that governed the way they did business also had a role in this new record price earned for cane farmers.

Shawn Chavarria

Shawn Chavarria, Director of Finance, B.S.I.

“We’ve done independent studies, which have demonstrated that our commercial agreement is one of the most grower-friendly agreements in the world because of the higher percentage. That goes so farmers and similarly, the fact that we share in all the products that we produce here at the mill, so it includes all the value added. It includes molasses and it includes payment for bagasse, so, from our standpoint, I think it supports what we’ve been saying over the years that we have a very good commercial agreement and the record cane price this year, in a sense, is validation of what we’ve been seeing over the years. So we do think because of where prices are, I think farmers are perhaps looking a bit more optimistic – I don’t want to have any risk in terms of interruption – so we’re more optimistic that for the upcoming crop, we will have an agreement in place.”