Thursday, November 18, 2010


Not exactly! Though I´m sure something along that line would be helpful. I´m no expert, but fundamental to the problem is the dropping production of sugar cane in quantity and the quality has been atrocious for years.
From my outside point of view, the cane farmers have been causing the largest part of the problem, because they have not increased quality of cane. We know now from Agriculture Department research, that cane farmers could increase quantity by black plastic irrigation hose DRIP FEEDING of water and that production it is said from elsewhere in the world where that it is practiced, the steady supply of water would increase quantity of cane by 12 times. They have an acquifier below the surface of the ground in the North where cane farming is carried out. The BSI factory and the Europeans who buy the sugar, say the quality has to be made better. I´m not sure of how one goes about that, though I´m sure the cane farmers are aware.
When you have dropping sugar prices and farmers are reluctant to do the right things, due to the expense and trouble in a time of declining revenues, then it has a spiraling effect and eventually the sugar industry is doomed to extinction as a commercial export enterprise.
The commercial symbiosis of the BSI sugar factory and the cane farmers is not clearly understood by me. The same situation exists in the citrus industry at present. Between the small citrus growers and the Citrus factory new investment that is under used. In practice the growers of both commodities of sugar and citrus have run their factories into debt and the bankruptcy that threatens them as a result.
If you have a child that refuses to take cough medicine, when he or she has a cold what can you do? It is a bit like a child being told to eat vegetables. Very hard to do. Politically, the problem is theirs, the growers and factory combined. Politically it would be hazardous to the votes to the PARTY controlling the government to do anything at all. The members must do their own medicine taking, or suffer the consequences.

--- On Thu, 11/18/10, Edith M wrote:

From: Edith M
Subject: RE:
To: "Ray"
Date: Thursday, November 18, 2010, 12:39 PM

Is it possible that the reason for falling production is the unavailability of working capital?
With ever increasing world sugar prices the industry should be doing well.

Seems to me the BSI needs total restructuring - new management, new venture capital which to pay off the loans with and to generate working capital and last, but not least an audit to find out where the money goes.
Am I on the right train of thought with this?


Date: Thu, 18 Nov 2010 09:08:33 -0800
Subject: Re:

BSI the factory continuously runs on loans. So they use up the payment monies. Social Security is going to lend them$10 million to pay off the farmers. Production has been falling for some years. So prices are going down by contract agreements. This makes it worse. Unless the production goes up, the business is doomed.

--- On Thu, 11/18/10, Edith M wrote:

From: Edith M
Date: Thursday, November 18, 2010, 10:31 AM

Thoughts from Canada.....

Did you read this article?

What a mess, how can they hold up payment to thousands of farmers?
Does this have to do with the corruption going on in Belize?

How can the banks opt out in the middle of a deal? And why is a waiver being held up,
the banks should be happy to keep the production alive if they really want to opt out.
Even though assets might get diluted by additional borrowing, it is better than killing
a whole industry and having to write off the debt.
BSI is a typical case of a company which needs to float more shares.
From the point of their present shareholders - dilution is better than eventual bankruptcy.

I am just glad your government has such a positive attitude towards helping out it's industries in times of crisis.

just my 2 cents worth

No comments: