2024-10-03 - Channel 5 Belize

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, 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, 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, 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, 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, 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.”

Transportation Within the CARICOM Single Market

Transport remains a critical hurdle for CARICOM in its quest to establish a single market. The movement of cargo by sea hinges on production volume, while air transport presents its own set of challenges. However, according to the Director of the CARICOM Single Market at the CARICOM Secretariat, various discussions are underway to tackle these specific transport issues. Here’s what he shared with us during our conversation on Wednesday at an event in Belize City.

Leo Preville, Director, CARICOM Single Market

“There are different discussions taking place right now. For instance, as a community there has been a study that has been commissioned through the Caribbean Development Bank, a whole regional transportation study, taking a look at areas we can commence with work immediately to solve the transportation problem. When you have discussions in the region, you have two discussions taking place. You have a discussion which says, you do not have sufficient transportation to move goods around. And then, the transport suppliers will say to you, no we have sufficient containers to move. We have it all there. It is available to you. However, they are talking about container loads as opposed to less than container loads and how do you accumulate goods in one country from different suppliers to form a container load. So we have a difficulty under production side within the region. There is an industrial policy being developed to address that. In the specific case of Belize, from yesterday’s discussion with the agriculture ministry, the issue was not with transportation of poultry products. The issue went beyond that and that is where at the political level there needs to be that sort of engagement. In terms of people movement, as we speak we have a multilateral air services agreement which if used as intended can help to provide solutions to our air transport movement in the region.”

Minister Habet Says BSWAMA Investigation Still Underway

In August, the Ministry of Sustainable Management revealed that an investigation was in progress regarding the disappearance of funds at the Belize Solid Waste Management Authority. The ministry’s press release indicated that the Belize Police Department would eventually be involved in the probe. Initially, the missing amount was reported to be around a million dollars, though various figures have since been mentioned. A source within the BSWAMA suggested that the funds were redirected to other projects within the office due to resource shortages. Today, Minister of Sustainable Development Orlando Habet informed reporters that he could not provide further details as the investigation is ongoing.

Orlando Habet, Minister of Sustainable Development

“The person was I think put on three months leave. We can’t comment much on it because it’s still under investigation and it’s something that the commission will be dealing with. So we can’t interfere. We don’t want to bias any result from the investigation being done or the decision from the Public Service Commission.”

Ministry of Education Responds to Teacher Salary Delays

The Ministry of Education has responded to BNTU’s growing concerns over delayed teacher salaries.

According to the BNTU, over 130 teachers in Belize reported that they have been working without pay.

The Ministry says that it submitted the names of 122 teachers for an off-cycle payment to address their delayed salaries. These teachers are expected to be paid by Friday evening. The Ministry added that the BNTU submitted a list of 99 teachers claiming unpaid salaries. After removing 12 duplicate names, 87 cases remained, with 44 teachers already included in the off-cycle payment expected this week. Of the remaining 43 teachers, 9 have already received their September salaries, 3 are processed through a different system, and 4 are being finalised for the next payment cycle.

This leaves 27 teachers who have not been paid and will not be paid on Friday. The Ministry says it is “committed to working with school management to sort these through posthaste so that these salaries can be processed later this month.”

The Ministry recognises that the outdated salary processing system causes delays and is committed to working with the BNTU to resolve these issues quickly.

Israeli Strikes on Iran Oil Facilities

President Joe Biden has confirmed that the United States is engaged in discussions concerning possible Israeli military actions targeting Iran’s oil facilities. When pressed about whether he would support such strikes, Biden responded, “We’re discussing that,” the BBC reported.

The situation intensified after Iran launched a missile attack on Israel earlier this week, which sent Brent crude oil prices soaring by 5% and up by 10% overall since the incident. In response, Israeli Prime Minister Benjamin Netanyahu vowed that Iran “will pay a heavy price” for the assault involving over 180 ballistic missiles.

Reports from Israeli media suggest that the initial focus of any strikes could be on Iran’s oil infrastructure.

Iran’s military chief has warned that any retaliation would be directed at all Israeli infrastructure.

The escalating tensions have raised alarms about potential disruptions in the Straits of Hormuz, a vital route for global oil shipping.

Recent developments are that the Israeli military has conducted airstrikes in Beirut. This resulted in casualties and prompting increased evacuation orders in southern Lebanon.

Israel’s ambassador to the UN stated that a response to the recent missile assault from Iran “will be soon.”

BNTU Claims: “Someone is Targeting the BNTU”

On Wednesday night, over 130 teachers in Belize reported that they have been working without pay, with some waiting for their salaries for over six months. At a press conference held at the Belize National Teachers Union (BNTU) headquarters, National President Nadia Caliz accused the Ministry of Education of unfairly targeting educators through the Government of Belize’s Smart Stream system.

During the event, teachers Kimberly Lopez and Janelle Cacho recounted their personal struggles. Lopez, who hasn’t received a pay check since May, said, “Imagine saving for your future and having to use that money now.” Cacho echoed this sentiment, stating, “It has caused immense distress, trauma, and inconvenience in my life.”

Both teachers faced complications with the mandatory 120 continuous professional development (CPD) hours needed for license renewal. Lopez explained her frustration with the system, which indicated she had only completed 32 hours despite attending several workshops. Cacho described being unable to teach for months due to her CPD hours and license renewal issues.

Caliz questioned the removals, asking, “Who authorised this? That is the key question, especially when we have a standing agreement.”

Caliz added, “This suggests a serious administrative failure. Someone is targeting the BNTU, using the system against us.” She warned that if conditions do not improve, the BNTU will take further action, declaring, “We cannot accept a situation where teachers show up to work and receive no pay at the end of the month.”

Can BSI’s Plan Fix Sugar Supply Issues?

Belize Sugar Industries (BSI) is addressing rising consumer concerns about limited sugar availability in supermarkets. For weeks, shoppers have faced restrictions of one or two pounds per purchase. This occurs despite BSI’s previous assurances of ‘no actual sugar shortage.’

Shawn Chavarria, Financial Manager at ASR/BSI, confirmed that as of this week, there are approximately 7.5 million pounds of white sugar and 2.2 million pounds of brown sugar in stock, sufficient to meet demand for the next three and a half months. Despite this, some retailers are still imposing limits.

Chavarria told News 5 today, “Somewhere along the supply chain, sugar is not consistently reaching the intended customers.” Investigations indicate that sugar smuggling may be worsening the perceived shortage.

To combat this issue, BSI has proposed introducing pre-packaged retail sizes for sugar. “That product will be much more difficult for anybody to try to smuggle,” Chavarria claimed. He noted that this packaging format has received positive feedback in the CARICOM market.

However, implementing retail packaging will require changes to the existing price control system. BSI is seeking government support to liberalise prices for packaged sugar while maintaining regulations for industrial sugar. If approved, packaged brown sugar could be priced around $1 per pound, and white sugar at about $1.10.

Elderly Couple Killed by Tree in Hurricane Helene

An elderly couple were tragically found embracing in their bedroom after a tree fell on their ceiling during Hurricane Helene in Beech Island, South Carolina. The storm claimed the lives of Marcia Savage, 74, and Jerry Savage, 78, and at least 200 other lives.

The elderly couple were married for over 50 years.

Their grandson, 22-year-old John Savage, had checked in on them just moments before the disaster. “We heard a snap, and I went back to see how they were. They were both okay, and the dog was fine,” he said.

However, shortly after his visit, a thunderous boom marked the onset of tragedy as a massive tree fell. “All you could see was the ceiling and the tree,” John said.

Jerry was well-regarded for his skills as an electrician and carpenter, while Marcia was a retired bank teller. Their granddaughter, Katherine Savage, remarked, “They loved each other to their dying day.” John added, “Their love was instant and everlasting.”

Additionally, two firefighters in South Carolina lost their lives when a tree struck their truck.