Belize City, April 28th 2008 - A deal won by UK buyers of Belize-produced sugar will provide the fragile sugar industry with much-needed financing to be invested in strengthening the capacity and improving the industry.

 View of BSI factory at Tower Hill

The agreement signed by the Tate & Lyle, the Cane Farmer’s Association and Fair Trade Labelling Organization will provide over US$3m for the capacity building and stability of the industry.

Carlos Magaña, Chief Executive Officer of the Cane Farmers Association, said a lot of effort had been placed at enhancing the industry to make it more viable. Modifications were made to improve the finances and accountability, the organizational structure and the introduction of practical by-laws. These were conducted and achieved with the support and assistance of the Belize Sugar Industries (BSI), BSI Control Board and the previous Government of Belize.

Fair Trade acknowledged the improvements and as a result will provide assistance in the form of U.S. $60 for every ton of sugar it buys from Belize for the EU market.

Magaña said that per year Belize can sell up 50,000 tons of sugar per year, reflecting a total financial assistance of US$3 for the 2007-2008 crop season.

But this money won’t be delivered to individual cane farmers. Magaña said they understand that to sustain the industry, they need to invest in the industry; therefore the money will go towards “industry enhancement” projects such as buying fertilizers or subsidizing costs incurred by farmers and rehabilitation of feeder roads.

To date Belize has shipped some 21,000 tons of sugar to the EU and the association has received its first premium of US$1.2m.

Magaña said they have identified four of eleven projects for 2008 which should benefit the over 6,000 farmers. The first project to be launched within the next few weeks will be the distribution of fertilizers to farmers.

The second project will be to ensure that farmers are using pesticide that follows the specifications of Fair Trade certification. Normally, farmers use Paraquat, but this chemical is not approved by Fair Trade.

The third project which will be to utilise $1m to upgrade sub-feeder roads used by cane farmers.

The fourth project is the initiation of a scholarship scheme for cane farmer’s school children. A total of $300,000 will be allocated and shared as grants.

Those projects are selected based on priority by a finance committee. The projects are the ideas of all members of the association, the very same cane farmers who will benefit from the enhancement of the industry.

According to Magaña, after the first year Fair Trade will conduct an evaluation of the initiatives undertaken by the association and Belize could win further assistance for the next three years.

The key to this sweet deal was Belize Sugar Industries’ longstanding trade relations with Tate & Lyle of the United Kingdom. Tate & Lyle lobbied for Belize’s certification under Fair Trade.

Magaña said the deal comes at an opportune time. The globalisation that has flourished in the world today has resulted in trying times for small economies of the world. Several nations in the Caribbean have had to eventually shut down their sugar industries because of the hardship. Although over the last ten years Government has done much to stabilise the industry and assist farmers through, the future looked difficult as a result of the impending EU sugar price cut and increasing cost of fuel. But to Magaña, the deal with Fair Trade gives them an opportunity to take the necessary steps to ensure that the industry in Belize keeps on getting sweeter.