On Sunday 5th 2009, at Escuela Secundaria Tecnica Mexico’s auditorium, an urgent Special Assembly of the Belize Sugar Cane Farmers Association was held. The purpose of the special assembly was to present farmers with a proposal, “Quality Improvement Program (QIP) in Belize Sugar Industry.”

Drafted by Fairtrade’s Central America’s Regional Representative Kieran Duriem and strongly supported and defended by Tate and Lyle’s Marketing Director Stephen Hemingston, the intent was to obtain written acceptance for the proposal from the Cane Farmers at the Special Assembly.

The document which lacked key components of a properly written technical proposal seemed more like a concept but was very clear in its demands, “Whilst the QIP is in place T&L will commit to purchase a minimum of 50,000t of Fairtrade sugar on an annual basis. If the QIP is rejected at any point T & L will withdraw from the 50,000t.” The document presented essentially proposed the formation of a Directive Group consisting of six members; one member of Tate and Lyle, BSI, BSCFA, SICB, Fairtrade and one independent member without voting rights.

scan document

The protagonist proposed that 65% of the Fairtrade funds will be transferred to a QIP bank account for production projects and that all QIP decisions will be final and not subject to veto. Strangely enough, the document makes mention that Fairtrade funds will be used for both field and factory in Belize.  It is our understanding that Fairtrade Funds are geared for producers and artisanal manufacturers, not for large manufacturers such as BSI.

Cane farmers at the meeting listened keenly as the proposal was explained in Spanish. Immediately after it was presented farmers questioned the intended modus operandi of QIP and out-rightly rejected the proposal. Other farmers asked for more time to discuss the proposal and for consultations to be held with cane farmers in the Orange Walk district. Fortunately, attendance at the meeting was low and a quorum was not formed for voting to take place, hence the document was only discussed.

Cane farmers in both Orange Walk and Corozal are increasingly suspicious of Tate and Lyle and BSI’s involvement in the process. The lack of confidence and mistrust between cane farmers and BSI reached an all time high prior to and after the strike earlier this year. Now it seems that a European strategy is being masterminded to provide BSI with cheap money at the expense of the cane farmers.  The irony is that BSI is not a member of Fairtrade as is the Belize Sugar Cane Farmers Association, however according to the QIP proposal; the factory can obtain Fairtrade funding. Important to note that this is BSI’s third attempt to procure European funding targeted for Cane farmers. 

The first attempt was during the time when the Sugar Adaptation Strategy was being launched and thereafter the Accompanying Measures to Sugar in Belize. BSI led a top delegation to Europe to negotiate for a portion of the 30 Million Euro (approximately 100 million BZ dollars) allocated for the Sugar Industry. BSI’s   request was turned down in Europe and they returned to Belize with empty pockets. The second attempt was in late 2008 when Joey Montalvo, CEO of BSI, wrote a letter to Carlos Magana, CEO of BSCFA requesting 20 Million dollars over a five year period from Fairtrade funds.  The request was again turned down by the BSCFA.  Reports indicate that Montalvo reacted by asking BSI workers to support a motion presented by his secretary proposing to de-certify the cane farmers from Fairtrade funds.  BSI workers, dissatisfied with the way in which Montalvo had administered their dividends were unsupportive and the motion was not passed.  Shortly after, the BSCFA was advised that Tate and Lyle would send a representative to attend the BSCFA Annual General Meeting and to put forward the request. Tate and Lyle backed down a few days after. 

This third approach has been carefully planned, especially after the cane farmers’ strike and the death of a cane farmer and the hundreds of thousands of dollars of losses suffered during the period.  This time the strategy used to obtain financing for BSI is being planned in Europe.

Let’s wait and see what will happen. Will hard working farmers give in to Tate and Lyle’s demands?