B.S.I. Announces Record High Sugar Cane Prices

For the second year in a row, cane farmers in northern Belize are celebrating a record-breaking final payment for their sugarcane. Today, Belize Sugar Industries (B.S.I.) announced that farmers will receive an impressive ninety dollars and ninety-five cents per ton for the 2024 crop. According to B.S.I., this price surge is driven by the continued growth of value-added sugar and robust sales, especially in the Caribbean market. We caught up with B.S.I.’s Financial Director, Shawn Chavarria, to get more insights into this historic price milestone.

 

                Shawn Chavarria

Shawn Chavarria, Financial Director, B.S.I.

“For the second consecutive year that we have our record key in payment to farmers for the 2024 crop of ninety dollars and ninety-five cents and per our commercial agreement, this payment will be made on Monday, November fourth. As we’ve highlighted in the press release, this really comes at a good time for farmers as the industry is battling a new disease called fusarium, and it’s affecting the growth of the sugar cane. While it’s not pronounced throughout the industry, it’s mainly being seen in the Corozal District. It is something that the industry needs to pay close attention to, and there are certain preventative measures that we will need to put in place. And so, in terms of disposable income, this payment comes at a really good time, given it’s, it’s a record price, it’s one of the highest farmers will receive. And so, farmers will be able to have this additional funds.  To be able to put in place some mitigation control. But it’s a it’s a good it will be a good day for farmers. We believe a lot of them will be very pleased with the campaign. And it continues to demonstrate the benefits of the commercial agreement where we’re sharing the value of the all the sugars that we produce, including the value of added sugar. Where we continue to get good prices, particularly in CARICOM, and we’re seeing good value for the sugar being produced. So it will be a good day. And, you know, we hope that farmers take this opportunity to use these funds to not only address fusarium, but also consider replanting. There are some programs that are coming on stream. The Green Climate Fund grant of twenty-five million U. S. We have AgroPro. Last week, we launched SmartGrow. We also know that there’s the CRESCAP from the World Bank, which will also provide grant funding. So the industry is really set up for the next few years to be able to improve its competitiveness. And so we hope that Farmers use this opportunity to take advantage and improve their productivity and improve their long term sustainability.”

 

Fungal Disease Persist Among Sugar Cane Crops

Earlier this month, we reported on fusarium, the fungal disease that has cane farmers in the Corozal District on high alert as it rapidly spreads through their crops. These farmers remain vigilant as the disease, which causes wilting and yellowing of sugar cane, continues to pose a threat. The Sugar Industry Research and Development Institute is diligently managing the situation. Amidst this outbreak, the announcement of a record sugar cane price brings a mix of relief and concern. We spoke with Shawn Chavarria, the Financial Director of Belize Sugar Industries, to understand how this will impact the upcoming seasons.

 

Shawn Chavarria, Financial Director, B.S.I.

“The situation with fusarium is one that continues to develop. We’ve been bringing experts from outside of Belize to give us advice and recommendation on how to tackle it. B.S.I. had brought in experts from Mexico and also Florida to assist, evaluate the situation. They’ve made some very good recommendations, which we starting to take on board. In terms of the mill readiness, our objective remains for to get the plant ready for a start early December. We are actually targeting the ninth of December and the recommendation from the experts are also to try to start the crop early because with the fusarium, the cane will quality will just continue to deteriorate. And so the longer you wait, the more deterioration you will have. I think, honestly, for this coming crop, it will be a question of the fields. Are the fields in a good condition because of the amount of rainfall we’ve had that farmers will be able to get in and harvest their cane. So I think fields and I also think sugar roads because we know that the heavy rainfall has also been damaging sugar road. So I think those two factors might be the main issues that could affect a timely start to the crop. But from the mills standpoint we are targeting to be ready for the ninth of December and the experts are also advising us to try to start early so that you know, the facade room does not  deteriorate the key in quality any further.”

 

PM Explains Cattle Exportation Tax Waiver

Last month, Prime Minister John Briceño signed off on a new rule that gives a big break to new businesses exporting cattle to Mexico—they won’t have to pay business tax for two years. This tax exemption is meant to ease financial hardships for these exporters. We caught up with Prime Minister Briceño today, and he shared more about why this tax break is so important. He explained that exporting cattle to Mexico boosts Belize’s cattle market, helping it compete with Guatemalan cattle importers. He believes this tax break is crucial for the survival of both markets and benefits the ranchers. Here’s more on what he had to say.

 

Prime Minister John Briceño

Prime Minister John Briceño

“What has happened is that for a long time the cattle is being exported into Guatemala. Now, here in Belize, they break no law to export it into Guatemala. Obviously, we are negotiating an agreement in Guatemala to be able to formalize that. But, the people, they need the meat and they go with it. So, there’s no taxes that is being paid. Mexico came in. When Mexico came in, they want to have a long-term agreement with us to buy. They need a minimum of two thousand. That’s just for them to break even. They want to buy five, two thousand heads every month because of the competition, and I also have a cattle ranch and I remember in 2006, 2007 when we started off, we were being paid forty cents on the hoof, which means live. They pay forty cents. They weigh forty cents and they take the cattle. Today, because of the competition, because of them coming in, the Mexicans, now the price has gone up to over two dollars and fifty cents. So you imagine how much more, especially and then we have over five thousand small cattle ranchers. Eighty percent of them only have fifty heads or less. So that’s having a tremendous impact on their lives and helping them. But when you export to Mexico, you’re at a disadvantage. You have to pay the business tax so they can’t compete. It makes it easier for the Guatemalans to come and say, well, I’ll pay you a little bit extra more if you sell it to me. They want to drive the Mexican out of business, obviously, because once they do that, then they don’t have to pay two fifty or two seventy-five. They can go back and pay eighty cents. So it’s just good business sense for us as a country, to be able to protect the Mexican market. And that is why we removed the business tax to give them as best as possible a level playing field.”

 

Belize Remains Free of Screwworm

A series of awareness sessions is currently underway in Belmopan. Organised by the Belize Agricultural Health Authority (BAHA) in collaboration with the Inter-American Institute for Cooperation on Agriculture (IICA), the International Regional Organisation for Plant and Animal Health (OIRSA), and the Ministry of Agriculture, these sessions aim to educate key stakeholders from the Ministry of Agriculture, Ministry of Health, and the Belize Livestock Association about the risks associated with the New World Screwworm.

Belize is free of the screwworm at this point, but with its presence in Honduras already, steps must be taken to prepare for the threat, particularly to the cattle industry.

The training, running through Friday, focusses on enhancing participants’ understanding of the impact and management of this highly detrimental pest, which is present in several Central and South American countries but not in Belize.

This initiative is part of ongoing efforts to ensure all key ministries and stakeholders are well-informed and equipped to manage potential risks associated with the New World Screwworm.

Belize on High Alert for New World Screwworm Following Outbreak in Honduras

B.S.I. Wants to Introduce Pre-packaged Local Sugar to Belize  

Sugar is one of Belize’s most prized commodities, yet recently, consumers have faced challenges in buying it from local supermarkets. Many customers have been turned away at the cash register, only to be told they can purchase just one or two pounds of sugar at a time. Despite assurances from Belize Sugar Industries last month that there was no shortage, the scarcity persists. Today, News Five’s Britney Gordon took a closer look at the sugar stock situation in Belize. Here’s her in-depth report.

 

Britney Gordon, Reporting

The sugar crop may have ended, but the dedicated team at Belize Sugar Industries Limited is still tirelessly packaging and distributing sugar. As one of the region’s leading sugar producers, Belize should have no trouble ensuring sugar is readily available for the domestic market. Yet, some retailers have imposed limits on how much sugar each household can buy at a time. This raises the pressing question: is there a sugar shortage? To address the speculation, the sugar suppliers provided us with an exclusive tour of their warehouse. Here’s what we discovered.

 

                           Shawn Chavarria

Shawn Chavarria, Director of Finance, ASR/BSI

“At the beginning of this week, we had approximately seven point five million pounds of plantation white sugar, and we had two point two million pounds of brown sugar. The monthly consumption of white sugar is approximately two point two million pounds. So what that means is that we have enough sugar for the next three point and a half months, and the monthly consumption for brown is around eight hundred thousand pounds. So similarly, We have enough supply to take a shoot at the end of December.”

 

Director of Finance, Shawn Chavarria, explains that the reports of a sugar shortage confounded the company until they realized that there was a larger issue at hand.

 

Shawn Chavarria

“We have heard reports that customers are complaining that they can’t find sugar in the shelves in the supermarkets. And so that is something that continues to worry us because as we’ve demonstrated here. There is enough sugar in our facilities. We are making it available. But somewhere along the supply chain line, the sugar is not always making it to the intended customer. And so that is something that continues to worry us.”

 

All signs point to sugar smuggling as the culprit behind Belize’s apparent shortage. One major incentive for smugglers is the price, which remains below the global market rate. Chavarria highlighted that the price of brown sugar has remained unchanged for over two decades, making it an attractive target for illicit trade.

 

Shawn Chavarria

“What we propose the government is that one way to help combat that is to package the sugar in retail packaging. Because that product will be much more difficult for anybody to try to smuggle.”

 

BSI has been exporting sugar under the Domino brand into CARICOM for about a year. Supply Chain Manager, Eldy Smith tells us that there is currently about one million pounds of this product in stock.

 

                               Eldy Smith

Eldy Smith, Supply Chain Manager, ASR/BSI

“I think that, they are very happy with this type of presentation in the car recall market. And I think that, we’ve got very good news from them, right? Especially since they’re saying that it’s, directly from a container, they can put it Onto the shelf.”

 

Implementing this proposed packaging would require adjustments to the current price control structure. BSI has suggested that the government deregulate retail packaged sugar while maintaining regulations on industrial sugar.

 

Shawn Chavarria

“The customer will have a benefit of getting a higher premium product because the sugar will be packaged. We have all the control from a quality and safety standpoint to do it here. So the consumer is assured that we are getting a product that is a high standard. We don’t have to worry how it was handled. They’re also going to get the exact weight because our scales are calibrated by the Bureau of Standards.”

BSI has proposed that the government introduce a margin for distributors and supermarkets. Under this plan, brown sugar would be priced at approximately one dollar per pound, while white sugar would be around one dollar and ten cents per pound on the shelves.

 

Shawn Chavarria

“So we would obviously have to sell lower than that to provide sufficient margin for distribution because that’s been another complaint distributors are saying that we don’t make enough to pick up the sugar here and distribute to a consumer then similarly retailers now they don’t have to worry about packaging it themselves hiring people to do that Is that already doing. So there markup is straight on the retail and we think that’s a price that consumers would be willing to pay because again, it’s a premium product. We would still have available industrial sugar, which would be for manufacturers, bakeries, people who make wine. So you essentially have two prices, one for retail, one for industrial.”

 

In previous efforts, BSI has struggled to adjust the sugar price index successfully. However, they are optimistic that the introduction of this new product will persuade the government to reconsider the benefits of modifying the current standard. If approved, BSI expects the product to hit the shelves by the end of the 2024/2025 crop season. Britney Gordon for News Five.

Sugar Cane Industry Suffers Labor Shortage

On Monday, the ASR Group and Belize Sugar Industries Limited made a groundbreaking announcement, revealing a record-breaking estimated price for sugar cane. As of September thirtieth, the average cane price for the 2024 crop is projected to be an unprecedented eighty-seven dollars and ninety-nine cents per ton, the highest in the industry’s history. This remarkable price surge comes on the heels of a challenging crop season, with B.S.I. facing significant labor shortages. In response, the company has been advancing towards automating parts of its assembly line. We reached out to B.S.I. for more insights into this development.

 

                          Shawn Chavarria

Shawn Chavarria, Director of Finance, ASR/BSI

“The cane price estimate we issued at the end of September was close to eighty-eight, eighty-seven point nine. That’s a new record price we’ve never had a price that high. A final price will be issued at the end of October, which will be for the final payment, which is due the first Monday of November. We know that farmers are very pleased with this price. We think it’s a demonstration of the investments that we’ve made in terms of expanding value added sugar, the port investments to lower shipping costs, and also the war market prices that have been increasing. So we’ve been hearing positive feedback on that and we’re. We’re hoping to see perhaps even as maybe smaller adjustment when the final price comes in at the end of October.”

 

                            Eldy Smith

Eldy Smith, Supply Chain Manager, ASR/BSI

“This crop, we did have severe labor shortages with our operations in these warehouses and boat warehouses. It is an intensive labor process that we do, right? So what we did is we strategized to be able to mitigate the labor shortages. And what we did is we were able to palletize this product. So our customers in the CARICOM are also dealing with this issue. And they are asking, they have already asked us to move into palletize slowly. I think the world will be moving into more optimized, automated processes. Because I think there are competitive markets out there. I think in Belize we have very competitive markets now, especially with the call centers, and so we need to ensure that we are prepared. And also because we’re as a company, we have a customer approach.”

How Will Sugar Cane Fungal Infection Impact Next Year’s Crop?

On Wednesday, we reported on a rapidly spreading fungal infection affecting sugar cane in Northern Belize. This infection causes the cane to yellow and wilt. While some cane varieties show resistance, over sixty percent of Belize’s sugar cane varieties are vulnerable and likely to perish upon exposure. It’s estimated that the infection has ravaged about three-fourths of the Corozal District in the past month. With the record-breaking sugar price announced on Monday, we spoke with Shawn Chavarria, Director of Finance at Belize Sugar Industries, to understand the potential impact on next year’s crop. Here’s more on that.

 

                    Shawn Chavarria

Shawn Chavarria, Director of Finance, ASR/BSI

“That’s something that we’re still working with stakeholders. A task force has been created. With all the different stakeholders, including BAHA, CARDI everyone’s giving it its full support, given the sense of urgency behind this. We’re trying to assist in bringing experts who experts are in soil nutrition and also disease. So we’re trying to help with that. The key is to try to find out the strain, or the genus of this disease, and once we know that, then we are able to make recommendations to farmers on what is the control measures that need to be put in place, what biological control or formulas they need to do. And so that is the step that we’re currently doing. We’re gathering the samples to send them abroad to do that analysis so that we can then make technical recommendations to farmers to implement these measures. Because this is something that is really concerning at this point. The initial feedback is that this is being seen across the border as well. So it’s not something that’s just affecting our industry, but we need to ensure that we, as much as possible, try to minimize its spread. I think they still need to go and do that validation of how much fields are actually affected. And so I know right now SIRDI on feel officers from all the different stakeholders are trying to do that going assessment. But at this point, we still don’t have all the information. We do know that it does impact the growth, the quality reduces. And so what you will see is lower yields. Some fields could be lost, but until that validation is completed, we really don’t know exactly what is going to be the impact next.”

 

Fungal Infection Threatens Sugar Cane Crops in Corozal

Farmers in the Corozal District are on high alert as the Sugar Industry Research and Development Institute (SIRDI) has issued a critical warning about a rapidly spreading fungal infection. This infection, known as fusarium, has been wreaking havoc on sugar cane crops for the past month, causing widespread wilting and yellowing. The situation is dire, with the infection already affecting approximately three-fourths of the district’s crops. The rise in temperatures has created an ideal environment for the proliferation of these harmful pathogens, exacerbating the spread of the disease. Marvin Garcia, Research Extension Officer at SIRDI, provided further insights into the crisis. He emphasized the urgency of the situation and the need for immediate action to mitigate the damage and prevent further spread. Farmers are urged to stay vigilant and take necessary precautions to protect their crops from this devastating infection.

 

                   Marvin Garcia

Marvin Garcia, Research Extension Officer, SIRDI

“It is through something that creates an opening to the plant can be environmental or can be true best  creates an opening and then the fusarium gets in the plant and infect the plant. We have had a long drought season, and I think this is one of the main reasons we have this problem. The soil starts to crack whenever it cracks. It destroys the roots underneath and it creates openings for the plant. Once the plant is weak, the fusarium will infect also, we have stem worm and we have sugar cane weevils that bore through the stem of the cane create openings and the fusaium also goes in there.  And also also you were asking if the fusarium will affect humans if we consume it. No, it’ll not. What we’ll do to cane, If it is severe, it depending on the variety of the cane. We have different varieties. Some of them, yes, it can destroy completely and some can be tolerant to it. And that we’re working on it and seeing which varieties are more tolerant. What we have seen in the  variety that is more than sixty percent of the sugar industry is B79, 474.  It is susceptible. To this fusarium, and we have seen even some areas with the mortality of this,  this variety with the fusarium.”

 

Farmers are advised to clean all fire lines and equipment thoroughly and to avoid using potentially contaminated seeds.

Digital Tool Launched to Track Disease Outbreaks in Wildlife in Belize

A new digital tool has been activated to monitor and report outbreaks of diseases in wild animals in real-time, with the goal of protecting the health of animals, humans, and the environment. The governments of Mexico, Guatemala, and Belize are running a pilot program using the Spatial Monitoring and Reporting Tool for Health (Smart for Health), allowing field data on wildlife mortality and disease symptoms to be recorded and transmitted instantly to veterinarians and technical personnel for swift intervention.

The Smart for Health tool enables federal personnel and community guards working in protected natural areas to record and track disease outbreaks using mobile devices. The technology strengthens epidemiological surveillance by providing early detection of pests and diseases in wildlife, which could pose threats to livestock, public health, and environmental balance.

The initiative, part of the “Pandemic Prevention and Response, One Health” global program funded by Germany’s Federal Ministry for Economic Cooperation and Development, involves specialists from agencies like Mexico’s National Agro-alimentary Health, Safety, and Quality Service (Senasica), the National Commission of Natural Protected Areas (Conanp), and Guatemala’s General Directorate of Animal Health (DGSA).

One of the tool’s key advantages is its ability to function without an internet connection, automatically recording data and saving geolocation coordinates. This feature is especially useful in remote areas, ensuring that data is collected even during field patrols in the most isolated regions.

The multinational collaboration, supported by the “Selva Maya” program and implemented by the German Technical Cooperation (GIZ), aims to improve preventive health systems and build a comprehensive database on emerging zoonotic diseases in the Maya jungle region. The Smart for Health tool, already in use across more than 70 countries, is critical for the rapid detection of wildlife diseases and facilitating a timely response to potential health emergencies affecting both animals and humans.

 

B.S.I.: There’s More than Enough Sugar on the Shelves  

Belize Sugar Industries has clarified that there is no sugar shortage in Belize. As we reported on Thursday, some supermarkets in Belize City have limited the amount of sugar to two pounds at a time per family. This raised the question of whether the country is experiencing a sugar shortage. However, Prime Minister John Briceño explained to News Five that this was not the case. He said that distributors are simply attempting to limit the amount of sugar sold illicitly outside of the country. Today we spoke with B.S.I. Communications Officer, William Neal who reiterated that Belize has more than enough sugar.

 

                                 William Neal

William Neal, Communications Officer, B.S.I.

“The sugar grinding season ended and we’re now repairing the mill, but we do have stocks that should suffice until we start our next crop in December. Currently, in our warehouse, we have more than eight point one million pounds of white sugar and more than two point five million pounds of brown sugar. Based on what we saw last year, we have made some changes in terms of selling directly to the stores. And so the issue is, there’s no middleman that is diverting the sugar. It’s being sold directly to the stores. The shortages that people are reporting on the shelves is actually controlled directly by the stores themselves. We know that there’s a larger issue of contraband sugar going across the borders, but that’s an enforcement issue and that is beyond our control. We’ve not had massive shifts in terms of demand. We continue to use historical data to supply both plantation white sugar and brown sugar to the stores. So there should be no shortages. As I said, there are no middlemen either, so the stores themselves are accessing sugar directly that we have destined for the local market, the domestic market. So that’s something that we will maintain that there should be no shortages. And we have more than ample supply to make sure that we have sugar available for local consumption going into the next crop in December.”

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