B.S.C.F.A. Wants B.S.I./A.S.R. to Act As Conveyor of Fairtrade Premiums

One of the major changes introduced through the newly implemented sugar regulations is the method used to pay Fairtrade premium. The legislation stipulates that the Belize Sugar Industries Limited (B.S.I.) must collect the Fairtrade premium directly from Tate & Lyle and act as a conveyor of those premiums to the four certified associations. This eliminated the need for the sugarcane farmers associations to enter into an agreement directly with Tate & Lyle for the payment of premiums. So, in the absence of an agreement between both parties, as is the case with B.S.C.F.A., farmers would still be paid their premiums. The regulations also pressures B.S.I. to distribute the premiums equitably across all four associations, so long those associations are Fairtrade certified. Failure to do so will result in the revocation of B.S.I.’s license to export sugar. The company has gone on record to say that this is far from an ideal arrangement, but the B.S.C.F.A. contends that it reintroduces fairness to the industry.

Javier Keme

Javier Keme, Chairman, BSCFA Fairtrade Compliance Committee

“The payment you refer to is none other than the function of a conveyor. They would only ensure it will not be them paying it. It will be them collecting it from the buyer which will be Tate & Lyle. So, the function of a conveyor is what is being asked or being requested by BSI by these regulations, versus now, these benefits BSCFA because last year when the crop ended we requested information on the volume of sugar they sold Tate & Lyle as Fairtrade and they told us we don’t have the right to that information because we don’t have contract with TLS.”

Oscar Alonzo

Oscar Alonzo, Chief Executive Officer, B.S.C.F.A

“BSI requires each association to sign an agreement with them to supply Fairtrade sugarcane so we are required to do that. We do it and they extract and get Fairtrade eligible sugar. So, how come you will tell me, you sign an agreement with Tate & Lyle to sell that sugar to them? Why can’t you put a requirement in the contract that they pay you the premium to pay us the premium? Why can’t you do that?”