Where is B.S.I. on Commercial Agreement with BSCFA?

Shawn Chavarria

Earlier today, the Belize Sugar Industries Limited provided an update on a proposed commercial agreement that has been presented to the Belize Sugar Cane Farmers Association.  In a media briefing this afternoon, B.S.I.’s Finance Director, Shawn Chavarria spoke on the latest developments in the sugar industry.

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

“Last week, we wrote the BSCFA to propose an extension of four years to our commercial agreement.  This would be under the same terms and agreement that we have with the other three associations that we have long-term agreements with and so it would be the same agreement.  Following the significant agreement that we‘ve made at the factory, in terms of increasing value added production, modernizing our logistics, improving our environmental compliance, we believe we have the foundations here to grow and improve in this industry.  I think what is currently lacking because of the fact that we don‘t have an agreement with the BSCFA is that certainty within the sugar industry, particularly here in the north for all stakeholders to invest with confidence.  So we believe the time is right for us to lock in a long-term agreement so that all parties are able to invest and grow the business, to reduce costs and become more efficient.  As I highlighted earlier, the drop in cane supply is a concern of stakeholders.  From our end, the mill is being under-utilized and from the farmers‘ end, if the production and yields are coming down, it would mean that the cost of production is going up and so it would ensure that we can have the mill at full capacity and then farmers operating at a lower cost and higher efficiency, we do need to address the matter of cane supply but the environment to do that can only be one where there is certainty, there is that courage to invest and for that to happen really you need long-term agreements with all stakeholders, with all associations.  And so we feel that the time is right for us to do that and we are coming off a year where we had record cane price and the indications are that sugar prices will remain positive in the upcoming year.  And so, it‘s really an opportunity for the industry to come together, collaborate more, help to drive and improve efficiency so that we can build a better future.”