Serious Rift threatens Citrus Industry

“We are held totally at ransom without dividends from CPBL; we had no dividends last year when the company made $5.2 million. We are getting no dividends this year when they lost $10 million but still there is some $10 million of retained earnings when the company under the Companies Act can still pay a dividend. Without dividends we cannot service our debt with AIB and Social Security for the acquisition of those first ten percent shares. If that happens, CPBL, the growers will lose their 51% majority shareholding in CPBL. We have no other reason but to believe that that is a designed deliberate strategy.” – Denzil Jenkins, Citrus Grower”

Belize City, Thursday, January 14, 2010
Citrus Products of Belize Limited General Manager Henry Canton is coming under increasing fire these days as a growing war of words between the Citrus Growers Association and a small group of growers ostensibly led by Canton, threaten to soon interrupt the 2009-2010 crop.
At the root of the problem is the desire and decision by seven growers to quit the CGA and form their own breakaway organization Belize Citrus Mutual Limited that Ernest Raymond is touting as some type of non-profit company.
The papers have already been filed with the Belize Companies Registry and it lists Raymond’s Belmopan home address as the company address. The group, which is comprised of Raymond and Canton, along with William Bowman, Mike Duncker, Sue Hafford, Jorge Rosado and Roe’s San Miguel Farms Limited, and who represent 16% of the crop, disagree with the rest of the industry on the management and direction of the processing company Citrus Products of Belize Limited, which is the majority shareholder.
CGA and Banks Holding, a strategic Barbadian investor that bought 47% of CPBL two years ago, are having serious differences that essentially David Jenkins outlined in the quote that opens this article.
The CGA wishes to replace its directors on the board of CPBL and Banks and their Belizean allies led by Canton are preventing this.
The CGA wants Banks to declare dividends and Banks and their Belizean allies led by Canton are preventing this.
The majority of the CGA membership is unhappy with Henry Canton’s tenure as the General Manager of CPBL and want him removed and Banks and their Belizean allies led by Canton are preventing this.
These issues and a few others are already before the Supreme Court of Belize are the parties seek legal clarification but what cannot be doubted is that the majority of Belize’s citrus growers feel their industry is being threatened by Banks and Canton et al actions, and are growing increasingly frustrated that their voices are not being heard.
For its part the UDP Government tasked financial advisor Alan Slusher to review the matter and try to resolve the problems. Though no one will say so out loud, many of the growers seem to think that Slusher has already sided with the large grower group and has reported back to Cabinet that “personality differences” were at the root of the problems.
Slusher’s mischaracterization may have been all the excuse the UDP GOB need to continue dragging its feet but as the CGA’s Henry Anderson noted during their turn before the cameras: “As I’ve said before, growers’ emotions are going high and they may take other measures to basically make their points known.”
The grapefruit first crop has been almost completed, and the orange harvest is only a week old. Last year’s harvest was approximately 5.5 million boxes and the industry averages approximately $100 million in export earnings for Belizeans.
Henry Canton may be a former PUP Cabinet minister but as has been published in this newspaper before, when it comes down to a choice between the many small growers and the few large growers it is not a matter for debate – the PUP champions the cause of all Belizeans but will always stand in solidarity with the Belizean working man and woman.

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