New Buyer for BSI makes Proposal - $10.8 M Dollars more in Sugar Payments for Farmers Print E-mail
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Thursday, 17 May 2012 00:00

Sugar cane being loadedThe Belize Sugar Industries Limited is in the process of hearing a proposal by a company interested in purchasing the majority interest in BSI through the purchase of equity in the company.

American Sugar Refining (ASR), the parent company of Tate and Lyle, presented to BSI a proposal in which it intends to spend 40 million Belize dollars in capital expenditure over the next 3 years. The infusion of capital will see the improvement and expansion of the Tower Hill Mill. Being that Tate & Lyle is a subsidiary to American Sugar Refining, the proposal includes the increase in price for the purchase of raw sugar by Tate and Lyle from BSI from 335 Euros to 425 Euros per tonne of sugar cane. This will be based on the yearly purchase of 70,000 of sugar. According to the proposal, this will yield BZ. $16.6 million dollars, which will see the cane farmers receiving 10.8 million dollars more and the factory receiving 5.8 million dollars more.

ASR also proposes to increase the supply agreements with Tate and Lyle past 2015 for raw sugar, and premium special grade sugars. Also included in the proposal is the offering of technical services between BSI and ASR as well as the financing of extension services to cane farmers. There are also components for the funding of the planting and cultivation of sugarcane by cane farmers. An agronomist assisted by 4 staff members are also expected to be added to improve production of sugarcane as well as harvesting practices.         

Based on information to The Guardian, the proposal is being looked at favorably and the senior management of BSI is holding consultations with the staff at the company. Meetings have taken place with government as well as cane farmers and the reception on the proposal has been good. There is closing date of June 30th, 2012 for the deal to be finalized.

Last Updated on Thursday, 17 May 2012 06:01