There is calm in the north tonight after the cane crop started without incident today. Every year since 2020- there's been a commercial dispute that has delayed the start of the corp. But, this year, it was only the long rains which caused a two week delay. But as we found out at Tower Hill today - that's only one problem in a complex cocktail of industry issues. Jules Vasquez reports:
This morning the leaders of the four sugar cane farmers associations gathered at the Tower Hill sugar mill for a symbolic "throwing of the cane" on the dumping table to mark the opening of the 2024/2025 sugar crop.
They haven't done this since the start of 2019 - 2020 season because the industry has been beset by commercial disputes with the largest growers' group.
And because of that, one year ago around this time - it was complete chaos in Sugarland.
This year, peace prevails:
Shawn Chavarria, Director of Finance ASR/BSI
"Well, it's certainly a welcome treat for us to be able to, you know, have a Christmas break where, really, you didn't have to worry about trying to negotiate a commercial agreement on when we will start."
Jules Vasquez
"Compare this to last year when at this time you all were in the height of the dispute, you know there was so much unrest here in the North. Now its a very big change. You come in peace."
Alfredo Ortega, Chmn. - Cmte of Mgmt - BSCFA
"Well, as you know, last year, we signed a two-year extension at the agreement. So this year, we don't have anything to sign. We are ready in peace for this year, as you rightly said."
"So we have to continue. And when time comes that we need to negotiate, well, then we will start negotiating again with the mill. At this point in time, everything is okay between us. We have signed."
"We need to work in peace because, at the very end, what we want to see is that our farmers really get the benefit of their labor. It's important for us to participate in the beginning of crop because it's always something that we ask God for blessings and guidance."
Shawn Chavarria, Director of Finance ASR/BSI
"Symbolically, it's a good day in that we have an agreement with all our associations, which paves the way for the crop. That's really the most important thing you need to have, a successful crop."
Vladimir Puc, Chairman Corozal Sugar Cane Producers Assoc.
"This symbolic opening is very important where it shows unity. The Four Association, we came here today, what is best for our cane farmers right, the start of a crop."
And while the throwing of the cane may have been a purely symbolic act - this year they will need all the good omens they can get:
Vladimir Puc, Chairman Corozal Sugar Cane Producers Assoc.
"It's a very challenging crop coming ahead. Reasons - weather, roads, the fusarium as you all know and other pests that have been affecting the the industry."
Shawn Chavarria, Director of Finance ASR/BSI
"We know as well about the disease fusarium which will result in lower quality cane, so what we need to ensure from the mill standpoint is that the mill has been maintained properly so that we can deal with this cane from our standpoint. We've done that. We've put in about 14 million Belize dollars just in out of crop replacement of maintenance equipment and general maintenance to get the crop and the mill ready for today."
Olivia Carballo Aviliez, Cane Farmer Relations Manager ASR/BSI
"Well we anticipate a really tough year this 2024-2025 crop season. The cane has been affected severely by fusarium, mostly in the northern area, the Corozal area, and also by stem borer, frog hopper."
"So it's a combination of three different, one, a disease and two other insects or pests. So we do expect a drop in production this year. The SCPC has indicated about a million tons of cane this year. We believe it's going to be less than that."
"So that is very worrisome for a factory that of course has fixed assets. So we are at 1.25 million tons capacity. And so when we have lower cane than that, it becomes very expensive for this mill to run."
And while that is the long View, even the short view is not encouraging. While we did see trucks lining up today - the lines were not very long, and up to this afternoon only 800 tonnes had been delivered - certainly not enough to for ASR/BSI to strike up the mill:
Shawn Chavarria, Director of Finance ASR/BSI
"We heard from farmers and their leaders that sugar roads are in a bad state. And that's making it difficult to get the cane in. So we're expecting that today might be a very slow day in that respect."
Vladimir Puc, Chairman Corozal Sugar Cane Producers Association
"At this point in time, there's one major reason why today it looks a little bit sad I can say at the beginning of a crop. We don't see many trucks as we normally do, right? And that is contributed mostly to the roads."
Jules Vasquez
"When are the roads going to be ready?"
Vladimir Puc, Chairman Corozal Sugar Cane Producers Association
"Well, I recall various meetings where as stakeholders, we presented to the chairman of the Sugar Industry Control Board months ago, where we said it's easier to maintain a road rather than to wait until and fix it at the end of the last minute, right?"
Jules Vasquez
"Has the government failed in doing its part to have the sugar roads ready?"
Shawn Chavarria, Director of Finance ASR/BSI
"I think it's really a long-term failure that has been occurring with respect to sugar roads. Infrastructure is critical for any sector, any industry, especially ours, which requires transportation of the raw material to the mill."
"But the state of the roads is not one that just occurred this year or the year before. It's been successive years of inadequate maintenance and repairs to these sugar roads for a critical industry. It's still one of the largest agricultural industries in Belize."
"It's the highest contributor to GDP from the agricultural sector, bringing the highest level of foreign exchange. I think a long-term solution really needs to be put in place to address the matter of sugar roads, because now it's costing us money, because it's delaying the start. If we have to push the crop into the rainy season, it will cost the industry to lower key in quality and less recovery of sugar."
An unsure start for an industry at the crossroads of climate change, crop infestations, and, somewhere on the horizon perhaps, commercial disputes. However in Sugarland, cane and hope spring eternal:
Alfredo Ortega, Chmn. - Cmte of Mgmt - BSCFA
"But the farmers are determined. That is one thing we can say, and I think my brother here can say that our farmers are determined that no matter what, they're still into this cane farming thing, and if you can go around, you will see how many farmers that already plant cane for next crop, or some of them for seed and whatsoever."
"But the farmers are still making a huge effort so that they can comply."
Vladimir Puc, Chairman Corozal Sugar Cane Producers Association
"It will be a surprise for us, right? It's a very unique year, right? It's something in history for for Belize. We really don't know until maybe the first weeks or month, we will see what the damage was."
"We hope that once that month or so passes, we can have already milled a certain amount of cane that has been damaged, and we will know exactly from there more or less what will be the outcome at the end of the year."
The factory is hoping to get some more deliveries tonight that would bring it to at least 1,500 tonnes - half of what was asked for but enough to switch on the cane shredder. Deliveries are expected to improve tomorrow.