Last night both BSI and the BSCFA confirmed to CTV3 News that there will be a shortfall in cane delivery and sugar production for this year’s crop season. A number of reasons were given for the shortfall including last year’s extended crop which ran well into the rainy season and the damaging of cane by rats and frog hoppers. But despite the shortfall and the fact that since the inception of the rainy season more tons of cane are needed in order to produce one ton of sugar with TCTS increasing to 10.57%, both the miller and the producer agree that the 2010/2011 crop season will still be a successful one.
But what about the economical side of the situation? Will the shortfall and the increase in TCTS impact the second and third bonus payment paid out to cane farmers? According to BSI’s Marketing Director Damian Gough and Chairman of the BSCFA Committee of Management Alfredo Ortega the second bonus payment estimate of $51.27 and the third payment of $57.14 based on a TCTS of 9.5% should be impacted very little, if at all.
Damian Goff- Marketing Director BSI
“If we don’t produce the amount of sugar that we hope to produce then subsequently the projected price to the farmers will be reduced a bit. It is hard to say right now what that would translate into dollars and cents for the farmers because we still have sugar to sell, we still have at least one substantial bulk shipment to make and possibly a small one depending on how much sugar we end up selling and we still have molasses that we have to export as yet.”
Alfredo Ortega- Chairman BSCFA, COM
“No debería de afectar porque aun con la reducción en producción en cana estamos viendo un aumento en cantidad de azúcar. La cantidad de cana no va a legar y la cantidad de azúcar tampoco sin embargo vamos a andar cerca de ello. El efecto no debe de ser muy grande en relación a el segundo y el tercer pago. Yo creo que BSI ya tuvo una experiencia con lo qué vivo el año pasado de que el dinero es del cañero y lo debe tener listo para cuando el cañero lo debe de recibir.”
The second payment is due 5 weeks after crop while the third payment is made on the second Monday in the month of November.