B.S.C.F.A Official Raises Issue with Net Strip Value Method of Payment

Chairman of the association’s Finance Committee, Javier Keme told the commission that there is concern over a disadvantage in the current model of the Net Strip Value, which Belize Sugar Industries/American Sugar Refinery uses in the method of payment to cane farmers. Keme explained that they are paid by percentage, but they believe that the figures can be manipulated.

 

Javier Keme, Chairman, B.S.C.F.A. Finance Committee

“Depending on the first estimated price, which is the first issue that the farmer is at a disadvantage because BSI at arriving at a first estimated price, in our view figures are being manipulated because the NSV model offers that on the side of the marketing prices to be conservative, to be on the lower end, and on the costs to be on the upper end. That cost would be more. This automatically results in a low first estimated price and the first estimated price is what give ground to apply a formula that if its over forty-two dollars, it’s going to be eighty-five percent. If it’s more, the percentage reduces to eighty percent of that estimated price. This creates a big challenge to the producers and it worsened over the years with the cost of grain inputs increasing. Why? Because as the first estimated price is calculated, it only covers the cost of harvesting. Remember that the producer had already embarked on a loan or financing to do the maintenance cost or investments in the production for that respective crop.”