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The End of 2015 Sugar Crop Is Bittersweet
posted (July 24, 2015)
La Zafra - the 2015 sugar cane crop was a challenging one - but at the end it was also a record breaking one. Today, ASR/BSI invited its partners - the cane farmers to review the year that was. We were there in Orange Walk for the final verdict and Jules Vasquez has the story:..

Jules Vasquez reporting
This morning at the Sugar Industry Crop in Review - it wasn't exactly a full house at the Muffles College Auditorium. But all the key players were there, the presidents of what are now three associations, sitting together with ASR/BSI- vested partners in a 7 year commercial agreement.

Elvis Canul, President - CSCPA
"I can report that our association accomplished a little above 80% of the total production that we had estimated. We can also complement our cane farmers that we were 3rd in quality out of 19 test groups. So we have an association which is working with the quality program and that means more money for our cane farmers."

Abisur Loza- president PCPA
"We are really glad and happy at the end of this sugar crop. Because we targeted and aimed in quality, in delivery we lost but we are still getting up there."

Jules Vasquez
"Looking back at the season, it started out with all this division and it amounted in losses. But at the same time, that division is what gave birth to your association. How do you feel at the end of it? Is it a curse or a blessing?"

Elvis Canul, President - CSCPA
"Well I see it as a plus. It has been gradually improving the competition level at the cane farming level. The team that heads the table is dynamic. We have different heads at the head table representing cane farmers."

Mac McLachlan, V.P. int'l relations - ASR
"We've ended up producing not only more sugar but a lot more sugar than ever before in the history of the mill, so we've produced 142 thousand tonnes of sugar. The last record was 125 thousand and a lot of things worked out in the end. We had great quality cane coming in, there was no stop in delivery of that cane, brilliant factory efficiency."

Efficient BUT bittersweet for the sugar industry: sugar production was up to a record high, but deliveries were down - leaving many carners with cane in the fields:

Ezequiel Cano, President - BSCFA
"It is a bit difficult to accept that a lot of cane stayed behind, and that is where our profits was."

Jules Vasquez
"How many farmers were left out in the cold?"

Ezequiel Cano
"The cane farmers who stayed at zero in the site of BSCFA is very small. There is not a huge number with zeros, but yes below 50% of them are deliveries. Yes there are many cane farmers."

Jules Vasquez
"Is there any chance that some of these farmers will go underwater? Because they have their banking obligations, and family commitments, that some of them might have to say 'Mein I sold my field and cut my losses'."

Ezequiel Cano
"Well that's the most difficult part that we are saying that maybe yes there will be cane farmers who will be in serious financial trouble. And up to now there is no help available for those cane farmers. That's the most difficult time for this part."

Jules Vasquez
"Will any of the farmers have to go out of business or have to sell some of their assets maybe in order to keep up? Because we know they have obligations at the bank or credit union."

Abisur Loza- president PCPA
"The truth for this year, I don't see the necessity of doing that because we are trying to get involved with other organizations to get some grants or try to help our farmers to survive."

Jules Vasquez
"Some guys got left with cane in the fields."

Elvis Canul
"Yes we do have a bit concern at this time, there is a process of reporting the stand-over that has been left in the field. And it's quite significant."

Jules Vasquez
"Will some of your farmers be suffering losses?"

Elvis Canul
"No, definitely the stand-over represents that there will be next weight for the next crop because it loses weight and sucrose contents. So we will see a decrease in quality for the first weeks in the crop for the next period."

Mac McLachlan, V.P. int'l relations - ASR
"We were supposed to finish this crop on the 28th of June. The factory needs to be repaired, it's not built to be grinding wet Cain. We conceded to extend that by a week first of all and then following interventions by farmers and then the government, we agreed to a further five day extension, so I think we tried to do our very best to accommodate those who hadn't managed to deliver cane. I really think we need to look at the harvesting and delivery system."

And while the shortened season created losses, all parties have eyes on a challenging future:

Mac McLachlan
"Rapidly falling world and EU sugar prices, which will have an impact on all industries in the world."

Abisur Loza- president PCPA
"The queries that I have is for the next crop season, because we are being told that we will have a reduction of 30% in the price estimate. That is something that we all have to confront."

But, it will be confronted in partnership rather than as adversaries:

Jules Vasquez
"Now I see you welcoming your various partners. Now these same people, these directors whom you are so cordial with at the start of the season, you all were at daggers drawn. They didn't trust you."

Mac McLachlan, V.P. int'l relations - ASR
"We have a lot of things to discuss, we have a lot of issues to overcome. I think I would say one thing about this year is that we have a new focus which is our strategic development plan."

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