SUGAR NOT AS SWEET AS IT USE TO BE

The sugar industry in Belize is one of the oldest industries that make a significant contribution to the economy, as one of the major export commodities.  This industry has been the major pillar of economic activity in the northern districts of Corozal and Orange Walk that engages over 5,000 farmers cultivating some estimated 60,000 acres of land in sugarcane.  The level of dependence on the industry over the past decade has seen some decline, as a result of some farmers exiting and others engaging in other economic activity to supplement their incomes.  As one of the major commodity sectors in Belize, the sugar industry consists of a large farmer base that has been managed through the establishment of the Belize Sugar Cane Farmers Association (BSCFA).  Most recently, with the various challenges of globalization and a changing trading landscape, the need to realize greater levels of efficiency at both the farmer level and by the processors has been a constant challenge.  Nonetheless, the future of this industry currently hangs in the balance, as there are several critical areas that required urgent intervention to assure the long term viability and sustainability of this industry.  Most importantly is how does the institutionally framework within this industry allows for the enhancement of peoples livelihood.  This columnist will highlight a few of these key issues.

Firstly, the structure and processes that prevails within the sugar industry are embodied within the BSCFA, the regulatory body the Sugar Industry Control Board, the processors the Belize Sugar Industries Ltd (BSI) all of which are superimposed within a political system.  A review of the value chain in the industry clearly identifies the weaknesses at all levels of the industry from farm to factory.  The current organization of cane farmers leaves much to be desired.  Historically the BSCFA has been the only cane farmer association that membership has been mandatory.  Its organizational structure has had the legislative coverage under the Sugar Cane Industry (Control) Act previously and currently under the Sugar Industry Act of 2001.  The law sets out clearly the organizational structure of this association and how it ought to execute its functions to the benefit of its membership.   The benefits that have accrued to members over the years have been limited to the provision of chemical inputs such as fertilizers and herbicides, but far more important has been their political lobbying mechanism.  It is that mechanism and the level of membership that has allowed the BSCFA to access significant lines of credit over the years from Government and its related entities.   The management structure of the BSCFA has remained unchanged and the many challenges it is currently facing is a direct reflection of the lacuna in proper management.   Most recently with the judicial challenge and the court’s ruling that now allows for the freedom of association, it has paved the way for other associations; namely the United Cane Farmers Association and the Corozal Sugar Cane Producers Association.   Cane farmers livelihoods strongly depend on the efficient functioning of their representative organization and when this is not realized fragmentation and free-riding becomes prevalent.  Legislative amendment by way of a revised Sugar Industry Act will not be the panacea to the current management difficulties being experienced by the BSCFA.   Any review of the current Act should clearly not include the organizational structure and function of the BSCFA or any of the other named associations.  It is an imperative that farmers recognize the need to have their associations and their individual operations function as efficient economic enterprises that will enhance their livelihood and quality of life.

A second critical issue that has plagued this industry is the level of political intervention in the livelihood structure and vulnerability context of Belizeans engaged in the sugar industry.   The electoral base within the two northern districts makes the political capital of cane farmers far more valuable than any other asset that they have.  The challenge however is that this political capital does not work for the majority of famers; instead the BSCFA and its membership has been a spring-board for aspiring politicians.   The mismanagement in the high debt burden that the BSCFA is currently faced with is a result of increased usage of this political capital coupled with poor financial management and accountability.  Therefore the current task and dilemma of cane farmers is how to relinquish the high levels of dependency on government’s intervention to pave the way forward in an industry that is completely privately owned.

Consequently, the challenge the industry is currently facing is a structural deficiency that must be addressed by those who have the economic investment in the industry.  The antagonistic relationship between farmers and BSI needs to be bridged to the benefit of all parties.   The requirement to become a cost competitive sugar industry is an imperative for its long term sustainability and by extension the improvement in the quality of life of Belizeans engaged in this industry.   All indicated to date, is that the levels of unemployment has increased over the past decade as a result of the inefficiency functioning of this industry.  People can no longer depend solely on sugar cane production.  However, if the industry stakeholders and government were to make the required meaningful interventions the economic prospects of Belizeans livelihood would be greatly enhanced.  So the call is made on all parties, cane farmers to get organized and find a way forward that will benefit the majority; and BSI to address greater levels of transparency and accountability with respect to the areas of marketing, shipping and handling of sugar; and government to guide the reform process required, by way of legislative amendments that will allow for the efficient functioning of a sugar industry that continues to make a meaningful contribution to the Belizean economy.  Belizeans deserve a better way of life and the cañeros should continue to demand the levels of respect from the political directorate.  With a national party convention in their back yard it was rather amazing that no policy statement was made to address this very key industry.  This obviously reflects the level of importance to the current government; one must pray that in their remaining term the industry does not continue to languish.  Where there is no direction the people shall perish.

Gwyneth Sydney Nah

Comments to GwynethNah@gmail.com

| | | | | |