Record-Breaking Payout for Cane Farmers Announced
Belize Sugar Industries (BSI) announced a record-breaking payout for cane farmers, set at $90.95 per ton for the 2024 crop, amid rising global sugar prices and increased Caribbean demand. This high payout arrives as farmers combat fusarium disease, primarily affecting Corozal district cane crops. BSI’s Finance Director, Shawn Chavarria, encouraged farmers to invest in disease prevention and consider replanting, noting supportive funding sources like the Green Climate Fund. Over one million tons of cane produced 102,000 tons of sugar this year, bolstered by favorable Caribbean and European markets.
Belize Sugar Industries announced today that, for the second consecutive year, cane farmers are set to receive a record-breaking payout for sugar. BSI says that the payout for the 2024 sugarcane crop is ninety dollars and ninety-five cents per ton of cane. BSI held a virtual press conference this afternoon, noting that the payout comes at a time when farmers are grappling with fusarium disease, which threatens to decrease yields in the industry. BSI’s Finance Director, Shawn Chavarria, says he hopes farmers will take advantage of the record-high payout to invest in measures to strengthen their resiliency against the disease.
Shawn Chavarria, BSI/ASR Finance Director: “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 the industry needs to pay close attention to. 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 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 will be a good day for farmers. We believe a lot of them will be very pleased with the cane payment. It continues to demonstrate the benefits of the commercial agreement where we’re sharing the value of all the sugars that we produce including the value added sugar where we continue to get good prices particularly in CARICOM 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 re coming on stream, the Green Climate Fund grant of $25 million US, we have AgoPro, last week we launched MARGOW we also know that there is the CRESAP 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.”
Chavarria noted that favorable world market prices were a major driver for the record-high payout.
Shawn Chavarria, BSI/ASR Finance Director: “The main drivers are the continued growth of value added sugar and sales particularly in the Caribbean. This year we saw very good prices in the Caribbean because of the challenges that other producers are having in the region and Belize has been able to fill some of that gap. Also prices in Europe increase significantly because of shortage in that market and we also saw improved prices in the US although we only have a quota to the US that price was also one of the highest that we’ve seen. So global improvement in sugar price is the good value for the direct consumption sugars that we’re producing. The port savings that we’re also seeing due to lower freight cost all these factors contributed to the record price we saw this past year. I don’t think so. I think certainly we’ve seen excellent sugar prices this past year. We know that sugar prices can be cyclical but one of the things why we advocated to moving into value added is that we anted to cushion form the volatility of raw sugar prices. And so I think the investments we’ve made and those strategic initiatives to move to more value added for us that is what will help us to be more sustainable and competitive.”
This year, over one million long tons of cane were delivered to the mill, producing more than 102,000 long tons of sugar and nearly 40,000 long tons of molasses.
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