Exactly eleven months ago the loss of molasses at the Belize Sugar Industries factory due to an uncommon chemical incident known as Maillard Reaction, threatened to shift the cane farmers’ membership further into disagreement with the mill owners.
Initially cane farmers were suspect and opposed to BSI’s proposal that the farmers bear about 65% of the total losses, which was nearly $300,000. The farmers, through the Belize Sugar Cane Farmers Association, launched a legal challenge before the court which has led to an out of court settlement.
Via press release from the BSCFA Committee of Management, a joint announcement was made today that an amicable agreement has been reached by both parties.
In that agreement, BSI has agreed to pay $101,820 plus 6% interest to BSCFA members to cover their losses, upon the signing of the agreement.
Both parties have also agreed that neither one has liability for the other for the loss of molasses and have committed to improving their records-keeping and delivery systems to prevent the re-occurrence of Maillard Reaction.
BSI and BSCFA also declared that the settlement is an opportunity to strengthen their relationship as business partners in the industry.