7 News Belize

The Rice Crisis: The View From The Ground
posted (December 1, 2011)
For the past few nights, we've been reporting on the situation in the rice industry. First there was the appearance of the mystery Uruguayan rice, and then the announcement that it was only imported for a charitable organization.

But really that is just the backdrop to the real problem, which is that rice producers are in serious problems - so much so that the country's single largest producer says he's shutting down.

That caught our attention - and so today we went to Blue Creek - to talk to a number of producers about the crisis they're facing:..

Jules Vasquez reporting
These are the Hillbank rice fields in Blue Creek: they are overgrown, untended, unplanted and inundated.

Usually in December it's planting time for rice, but this year, nothing's growing and nothing's planted - and the only thing thriving in the marshes are the Blue Wing Teal that scatter and whorl at the sound of our approach.

It's a lovely sight as they spread themselves against the clear morning sky in dazzling, rhythmic patterns - but nothing in this desolate former farmland is pretty for Peter Dyck: this area used to produce 40% of all the rice that the country consumes, but this year, his sales are down almost 40% -and because of that he's all but given up on rice farming:

Peter Dyck, Managing Director - Hillbank Agric Co. Ltd.
"Well we have decided to discontinue producing the Uncle's John's rice."

That is Hillbank's flagship brand and he's got about 9 million tonnes of it stored in this warehouse and here in these silos - which he can't sell because his sales are down 50%.

Peter Dyck, Managing Director - Hillbank Agric Co. Ltd.
"Our sales have dropped 50% from exactly a year ago."

Jules Vasquez
"Your sales have dropped 50%?"

Peter Dyck, Managing Director - Hillbank Agric Co. Ltd.
"Yes."

Jules Vasquez
"Retail, wholesale?"

Peter Dyck, Managing Director - Hillbank Agric Co. Ltd.
"Total sales and I have facts to show that."

He says the problem is the Belize Marketing Development Corporation - what used to be the marketing board:

Peter Dyck, Managing Director - Hillbank Agric Co. Ltd.
"We have come to a point where we just cannot compete against government funded subsidies of rice being grown in the south any longer. BMDC which is a statutory body is selling rice to the general public at 60 cents per pound wholesale meanwhile we are selling at 85 cents a pound and we just cannot reduce our prices any further because we have to pay full taxes on all our inputs that we grow and we have to pay full taxes on the products that we sell, which the BMDC all these taxes are avoided by them."

Here at another mill, we found this small rice farmer selling his paddy for 25 cents a pound to a Guatemalan outfit. His price is lower than his cost of production - but he's had the rice in storage since May of 2010, and with no other option, he has to sell it cheap and quick before he loses it all.

Inside the Mayan Pearl Mill, rice is being churned out of the mill and being sealed off in sacks - bear in mind that he has 500 tonnes in storage but the owner Edward Reimer - who's been producing rice since 1976 - says while he is delivering - sales for him are also down.

Jules Vasquez
"You are actually making sales, it can't be that bad."

Edward Reimer, Owner _ Mayan Pearl Rice
"Well the sales are very small."

Jules Vasquez
"In comparison to last year, how would it compare?"

Edward Reimer, Owner _ Mayan Pearl Rice
"We were moving a load a week last year. Right now we're moving less than a load a month. We were at a quarter of our normal sales."

Jules Vasquez
"Why is that?"

Edward Reimer, Owner _ Mayan Pearl Rice
"It's an overarching problem I don't know exactly where the other rice comes from but we have been losing market share. We historically have been blaming the marketing board for it. We don't know how it works but we know the market is taken up by a deferent source of rice."

Jules Vasquez
"So you know there is imported rice selling locally?"

Edward Reimer, Owner _ Mayan Pearl Rice
"Oh yes."

That is one theory as to what's causing the sharp fall-off in sales - we hard many more - most involving the BMDC and this the bogeyman of the hour, Uruguayan rice.

Peter Dyck, Managing Director - Hillbank Agric Co. Ltd.
"I think that whole thing is a farce. BAHA does not issue permits, to import rice ok. There is a different process, the ministry of agriculture who keeps the statistical data gives a recommendation when they see that the rice stacks are low and then that is taken on to the ministry of trade where the supplies and control unit issues a permit based on the recommendations from the ministry of agriculture. BAHA is there to inspect the cargo when it comes in, BAHA is not there to issue a permit to import rice, so let's stop telling the Belizean people lies that just don't exist. It's not just given to the needy it's given to those that want to make money off of it."

The same complaint at Circle R which is a co-op of 20 Blue Creek farmers and one of the larger producers. They have about 9 million pounds of rice in storage, and sales are also sharply down - he says over production of rice is also a factor

Stanley Rempel, Manager, CIRCLE R Products
"Currently we're selling about 4,000 bags a month that's what we've been averaging for the last year and a half. Prior to that it was, depending on what time of the year it was, but it was from 6-10,000 it's what we would sell."

Jules Vasquez
"So how much are your sales down?"

Stanley Rempel, Manager, CIRCLE R Products
"Well that would be 50%."

Jules Vasquez
"What is to explain for that? What accounts for that?"

Stanley Rempel, Manager, CIRCLE R Products
"Partly is because there has been a lot of production over the last 2 years which is a big reason, but then I don't know if that is all of the reason but. We are suspecting that this contraband rice has something to do with it. But we've been having that question in the last year and a half or so."

Jules Vasquez
"Now if sales are down 50%, how is your company doing?"

Stanley Rempel, Manager, CIRCLE R Products
"Struggling, barely surviving."

Jules Vasquez
"So what does the future look like?"

Stanley Rempel, Manager, CIRCLE R Products
"It looks like the future is going to look better because we are looking into export. We are kind of forgetting about the local market because it's too hectic right."

Jules Vasquez
"How will you compete in the export market, if rice produce in Belize is more expensive than rice that you can buy in Mexico, Guatemala or Uruguay for that matter?"

Stanley Rempel, Manager, CIRCLE R Products
"Projections are that the world market price is coming up, so we are waiting."

Jules Vasquez
"You'll meet them at the top."

Stanley Rempel, Manager, CIRCLE R Products
"We'll meet them at the top and hopefully everything goes well from there."

And his optimism shows here in these fields where farmers are still working, harvesting rice and another two thousand acres will come under production in January.

This combine is working on 30 acres. How many acres under production?

Jules Vasquez
"How many acres under production?"

Stanley Rempel, Manager, CIRCLE R Products
"Currently there is going to be 1,000 - 2,000 acres that it's going to be."

Jules Vasquez
"That's a heck of a lot for a market that is in a state of acute contraction. Do you know what you're doing?"

Stanley Rempel, Manager, CIRCLE R Products
"Well we've been doing this for many years so."

And it's that rugged determination which is powering this enterprise

Stanley Rempel, Manager, CIRCLE R Products
"We have to make it work; our business is club of 20 plus farmers. Farming is their life. Most of the land that we use for rice can only be used for rice, and they have a big investment, invested in the whole field and everything. We have to find a way we have to make it work."

And while that hard earned optimism powers this combine, others aren't so sure:

Peter Dyck, Managing Director - Hillbank Agric Co. Ltd.
"It's taken Belize from the 1970's till about three - four years ago to become self-sufficient in rice. What government has done right now I would say we will wait another 30 -40 years before we would see our self-sufficient in rice again?"

Edward Reimer, Owner _ Mayan Pearl Rice
"I don't know that it's ever been this bad."

Jules Vasquez
"Your exaggerating it most has been this bad, from 1976 your farming."

Edward Reimer, Owner _ Mayan Pearl Rice
"It's never been this bad I am serious. Yes."

Peter Dyck, Managing Director - Hillbank Agric Co. Ltd.
"The bottom line Jules is that we cannot continue to grow rice that we have up to now, I want to take this opportunity to thank all the customers and the people of Belize in the past that they have supported the Uncle John's brand of rice by buying it and consuming it. We are sorry that we have to make the announcement that we will closing our doors of rice production in this country but, we have just come to a point that it is necessary to do that, and thanks again Belize for supporting us all these years."

Jules Vasquez
"Are you serious, you're being a little extreme maybe."

Peter Dyck, Managing Director - Hillbank Agric Co. Ltd.
"I am not playing a game I'm serious (deadpan look)"

We'll have more on that story tomorrow - as we'll look more closely into very direct allegations made against the Belize Marketing Development Corporation.

Due to time constraints on our end, we did not reach Director Roque Mai today, but on Monday he resolutely denied any allegation that the BMDC is involved in the importation of any quantity of foreign rice.

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