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Interamerican Institute for Cooperation on Agriculture - samedi 1er mai 2010

The Ministry of Agriculture of Belize initiated in July of 2005 conversations with the Representation of the International Institute for Cooperation on Agriculture (IICA) in this country for the execution of a study on the competitive situation of the sugar chain. The idea is related to the decision of the European Union to cut the prices for sugar paid to the ACP countries from year 2006 to 2010. Consequently the country needs to identify the probable economic and social impacts of these measures, so that a strategy can be elaborated to overcome or mitigate the potential negative effects.

1 ; As part of the recent WTO trade agreements, in November 2005 the Council of the European Union have decide to reform its Sugar Protocol Benefits. Main implication would be the reduction of 36% of the price for sugar for the ACP countries along the period 2006 – 2010. With this concern the Sugar Industry Control Board in cooperation with the Interamerican Institute for Cooperation in Agriculture (IICA) conduct the present Value Chain Analysis in order to determine inefficiencies along the chain and policy priorities to improve its competitiveness studying their agents, interactions, cost and productivity. The methodology is based in the “Chain and Dialog for Action” approach developed by the IICA which aims to strengthening local abilities in research for agricultural competitiveness and developing open dialog bridges between concerning actors.

 

2 ; Sugar cane is produced in two departments : Orange Walk and Corozal. A survey was done to sugar farmers of both divisions and most conclusions of the document come out of it. Depending on the applied technology package there were define three farmers technology levels : high, medium and low. High technology fulfil the full package, medium technology level do not fill the full fertilization activities and implement alternative manual operation for planting, and low technology level don’t fulfil particularly activities related to the land maintenance

 

3 ; There is just one factory to process the sugar cane ; however there is a restriction that does not allow it to pay any price for cane ; regulation by agreement between farmers and factory splits the net stripped sales value in 65% for farmers and 35% to the factory. The net stripped sales value is derived after excluding expenses for local handling, local sales and exports to the total sales value for sugar and molasses. 

 

4 ; There were analysed the technical and economical results along the chain for crop 2004/2005 and three set of scenarios were make : a) a change in the value of total sales after applying an estimated chart of reduced sale prices to EU ; b) the same as before but improving productivity in both links agriculture and processing and c) simulating an international price for all external sales of US$ 0.10 per pound and maintaining the improvement in productivity.

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