Beyond the domestic problems that the sugar industry has been experiencing
with the BSI workers going on strike for better pay, the union's huffing and
puffing is nothing compared to the difficulties the industry faces in international
markets. Truth be told, the industry is at a crossroads of either becoming much
more efficient or simply falling off the chart of world sugar producers.
Today the industry bore it all when representatives form the Ministries
of Agriculture, Trade, and the cane farmers called a press conference to sound
the alarm for a troubled industry.
Alfonso Noble
Reporting,
The press conference was called to address a single issue: that is the dire
crossroad Belize’s sugar industry finds itself at. Beyond all the technical
notes contained in the volumes of information were distributed today the single
sticking point is that the sugar industry is nearing the point of make or break
and the bottom line is that we better buckle up or simply buckle:
“The EU remains the most important export destination for Belizean
sugar. The CBI arrangements may be superceded by the provisions of the FTAA.
CARICOM is the most stable market but it is becoming more competitive. And lastly
the world market is the least attractive for Belize.”
But with the European Union sugar regime being challenged, 48% of our sugar
export hangs in the balance along with the preferential price of 22.52 cents
a pound that this block purchases our sugar for in comparison to 6.45 cents
that sugar actually sells for on the world market. With this serious threat
to our greatest consumer, Belize’s industry has to realize greater economies
of scale. Government has commenced the process with the reformation of the entire
industry.
Hon. Servulo Baeza, Minister of Agriculture
“We did critical analysis of the industry to identify the areas in which
they can be interventions at the local level to enhance competitiveness. The
working group was directed to specifically look at production, harvesting and
transportation, marketing and distribution, milling and refining, and policies
and institutions. These four main areas were carefully analyzed in the context
of identifying their major constraints and making specific recommendations to
address these issues.”
Combined with this there is a new sugar industry act that has instituted sugar
quality controls, research and development as well as deregulation; that is,
doing away with middlemen who are not necessarily cane farmers.
Hon. Servulo Baeza,
“If a farmer is producing 200 tons of canes but only has a license
for a 100 tons - what used to happen before is that he was only allowed to deliver
that 100 tons of cane in his name. Then he had to find a market for the other
100 tons. So he would have to sell that 100 tons of surplus to some other farmer
that holds a license. With deregulation now, that farmer is able to deliver
the whole 200 tons of production in his own name and so be able to gain the
benefits of his efforts and his work.”
But even with farmers getting more for their work because of the reformation
of the system, Baeza concedes that the revamping of the industry is not moving
quite apace.
Hon. Servulo Baeza, Minister of Agriculture
“We can see that some changes are occurring but they are occurring very
slowly. It is a process and I don’t think we can change from one day to
the next. It is something that will take some time and I don’t think anybody
can say that by 2006 we will be ready. But we are taking on the challenge.”
But even as the challenge is taken up, more likely than not, by 2006 we are
going to lose the special preferential sugar agreement with the European Union.
Even so Minister of Trade Hon. Eamon Courtenay says that there is still hope
for Belizean sugar in the EU.
Hon. Eamon Courtenay, Minister of Trade
“2006 could possibly be the end of the SBS agreement. But that is just
a small part of our exports to the EU. Our EU is more under the protocol which
is set to expire possibly in 2008. But then we have the economic partnership
agreement which is going to succeed that. And we intend to advocate very strongly
that it be extended as part of the economic partnership agreement. So 2006 is
just one aspect of the preferential arrangement.”
And this arrangement is being defended for the farmers who say they are in
sugar for the long haul and are readying for reform and the new world trading
order.
Alfredo Ortega, Cane Farmer
“We the cane farmers are accepting the change and farmers are trying very
hard. And we are trying to survive. We have the confidence that sugar will continue.”
The sugar industry employs over ten thousand persons representing some
13.4% percent of the country's workforce. Last year it earned Belize US $78
million.