There is serious consideration being given to increasing the price of sugar. This comes as the country’s northern cane fields face a full-blown agricultural crisis. Climate change, compounded by a fast-spreading fungus called fusarium infesting sugarcane fields and other biological threats, has triggered more than $50 million in losses and decimated this year’s crop.
The reality is that sugarcane farmers are feeling the pinch and say they are now struggling to survive. Many rely on loans to maintain their fields, but banks are pulling back due to declining yields.
“When the mill announces the second payment, farmers go to the banks,” said Agriculture Minister Jose Mai. “The banks would say, ‘Well, your production dropped, and your fields are diseased. How would you like me to lend you money?’
Mai explained that sugarcane farmers face some of the toughest financing conditions in agriculture. “Unfortunately, at this time, sugarcane is the only crop that farmers go every year to the banks for the same exact surface area of production; it’s sad. At 14%, it’s difficult to survive.”
He added, “Having lower production, a lower price, and having a yield that you’re uncertain of, all this puts pressure on the farmer and pressure on the financing sector.”
Mai confirmed that Belize’s sugar output dropped by 25,000 tonnes this year. While the country’s local consumption is about 12,000 tonnes, he raised concerns about contraband from Mexico, where sugar sells for three times more than in Belize.
“Clearly, if the price of sugar is three times more expensive there, and ours is 75 cents here, the contraband becomes rampant; it becomes uncontrollable,” Mai said. “That’s why we are saying that we need to increase our price to maintain our sugar here, and we will not import from the US this year.”
Though the increase of the sugar price is not a new idea, with it already being presented to Cabinet but not approved, Mai said the matter is back under review. “We are getting some pushback, but I think it is just fair that farmers get a fair price for their sugar.”
Farmers argue that the current pricing model no longer covers production costs. All four sugarcane associations are now pushing for a price hike on sugar, molasses, and energy production linked to bagasse.
“If we don’t get the assistance needed, we will end up with a sugar industry where we don’t have any production,” Alfredo Ortega told News 5, Chair of the Belize Sugar Cane Farmers Association (BSCFA).
Meanwhile, a biological treatment using Trichoderma fungus offers hope when it comes to addressing the fungus issue. The government has committed $500,000 to a pilot project with the goal of controlling the outbreak ahead of next year’s crop.
