Email

Print

So, why did the millers relent and agree to one year instead? Here's what BSI's Shawn Chavarria had to say:

Shawn Chavarria - Director Finance, BSI/ASR
"I think from our perspective; the matter became bigger than just BSI and the BSCFA. As Olivia mentioned, we have long-term agreements with three other associations who were keen to get the crop going. They have their farmers who were ready to deliver, and then you have the wider economy that depends on the crop season. So, you have the cane cutters. You have the drivers and farmers who have to purchase fuel at the gas station. So, it extended to the wider cane farming community, and the economy, particularly the economy here in the north. So, for us, the priority became getting a crop started, whether it be through a one-year or a two-year agreement. For us, the priority was really to get to this point where we're starting the crop, we're receiving the cane, and we can get things going. Our rationale for two years was simply to provide more time and space for us and the BSCFA to see if we can reach a long-term agreement. If the BSCFA is confident that can be done within the year, we certainly look forward to that. At the end of the day, that remains our objective, to reach a long-term mutually-beneficial agreement. And if we can do that within one year, then we look forward to doing so."

And this interim agreement is very similar to last year's last-minute resolution to the standoff that led to 21 days of productivity loss. So, did the two disagreeing partners move any closer to seeing things from the other side's perspective? Or are they kicking the can down the road? We challenged Chavarria on that, and while he had to be cautious in his comments due to confidentiality agreements, he did answer the question:

Shawn Chavarria - Director Finance, BSI/ASR
"One thing the mediation allowed in terms of the process was to allow an opportunity for big sides to really get into some of the meat. So, I think, having made some progress in that effort, we'll see. We'll see how this coming year comes and what it brings. And if we can get closer and hopefully reach a long-term agreement, At the end of the day, the economy depends on the sugar cane industry, and we all have stakeholders who depend on it. So, that has to be - in a sense - the priority and the core that we reach an agreement. We avoid these stalemates at the start of every crop that leads to uncertainty because it's not good for anyone. The mill can't plan, and neither can The farmers. So, the objective really is to find a way to reach a long-term agreement that is mutually beneficial."

Daniel Ortiz
"It doesn't seem to me that the respective positions have changed. You still have you guys at BSI saying the proposals that the other side has made would cause a transfer of so many million dollars in value. And then, you still have the BSCFA suggesting that they don't have the confidence to accept all the charges that come under the net strip value. I want to suggest to you, sir, that we're still back at where we were last year, and year and the year before that, where the two sides are holding firm on their positions. Do you agree or disagree?"

Shawn Chavarria
"Again, without getting into some of the details of the mediation, from our standpoint, we did put forward some solutions to address the matter of transparency the BSCFA had in that effect. And from our standpoint, we do feel that we have some very credible proposals that are in front of them. But, I think, certainly from the discussions, it has morphed into something that is bigger than just transparency and the numbers, it's dollars and cents. And I think, at the end of the day, the core issue seems to be that the BSCFA wants to be paid more for sugar cane. And I think that's where, from our standpoint, we would have difficulty. We've explained to both the media and the BSCFA that we're certainly happy to look at a simplified formula that makes it very easy for the associations to determine the price of cane. But, what we can't countenance is this massive transfer in value. So, I think if it's focused more on the transparency, the cost, and trying to see how we can get the BSCFA comfortable with that, then I think that a long-term solution can be achieved."