Improved global market prices coupled with strategic, transformational, industry investments by Belize Sugar Industries Ltd. (BSI) resulted in another year of a very good cane price for farmers. The 2022/23 cane crop second payment, made today July 19, 2023, is now based on a cane price estimate of BZ$70.22, making it the second highest price since 2000 and the highest since the deregulation of the EU sugar market. Based on a first cane payment of BZ$43.63, the second payment will be an average of BZ$20.10. When compared with the previous year’s average of BZ$16.91, this is an increase of BZ$3.19 per ton of cane. Under the current commercial agreement between BSI and the farmers, farmers directly benefit from increased market prices, production of value-added sugars, and logistics savings, all of which contributed to the improved cane price. Although cane supply was lower this crop by 164,000 metric tons, the higher second payment will result in $17.8 million being circulated into the northern economy which is higher than last year.
Whilst we have seen very good cane prices for the past two crops, the sugar industry in the north continues to face uncertainty. The new export regulation entitled “Sugar Industry (License to Import/Export) Regulations, 2023,” introduced to control the import and export of sugar and force BSI to pay Fairtrade premiums directly to associations, is unworkable and violates BSI’s rights under the Belize constitution. BSI, therefore, lodged a challenge against the offending sections. An emergency injunction hearing was scheduled to take place on 21 July 2023, but following requests from the government’s legal team, BSI agreed to a consent order to maintain the status quo until the substantive case is concluded, most likely in the new year. This means that the areas of the regulation being contested will not apply to BSI unless and until a Judge decides they are lawful.
While the company is pleased that in the short-term its business and the potential negative impact on the economy of this ill-conceived regulation are avoided, it sincerely hopes that all stakeholders use this opportunity to reassess the obstacles that have led to a serious regression in the industry during the past two years and seek common ground on which to work together to build a better and more sustainable business.
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For further information, please contact:
William A. Neal
Email: william.neal@asr-group.com
Cell: 610-9774