December 18, 2017

Tensions Rise Between BSI And BSCFA

There is tension in the sugar industry between the Belize Sugar Cane Farmers Association (BSCFA) and the Belize Sugar Industry (BSI/ASR).

This comes after a proposal was made by ASR to upgrade the factory in preparation of the coming changes in the EU market regime in October 2017.

In that proposal ASR proposes to invest twenty-two million dollars to increase production of value-added, direct consumption sugars.

For this investment to happen however BSI/ASR is proposing to amend the 2015 cane purchase agreement to cement the current revenue share agreement as well as the payment formula for bagasse until 2022.

BSCFA does not believe the proposal is beneficial for its farmers and has presented a counter-proposal, which proposes a comprehensive revision of the contract including payment for bagasse.

According to a release by BSI, the claim that BSCFA is focused on altering the division of existing revenue, rather than focusing on increasing overall revenue for the benefit of the entire industry and the country of Belize and offers to explain the project benefits to all cane farmers.

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