By: Omar Silva I Editor/Publisher

National Perspective Belize I Digital 2025

www.nationalperspectivebz.com

Belize City: Wednesday 9th July 2025

Special Feature

In what many are calling a landmark decision for agricultural justice in Belize, the Supreme Court has ruled that it has jurisdiction to hear the Belize Sugar Cane Farmers Association’s (BSCFA) claim against UK-based Tate & Lyle Sugars and its local affiliate, ASR-BSI. The ruling allows the farmers’ allegations of conspiracy and breach of trust over millions in Fairtrade premiums to proceed to trial on home soil.

The Case in Brief

At the heart of the dispute are Fairtrade premiums from the 2021/2022 and 2022/2023 crop years—funds that, by international Fairtrade standards, should flow directly to cane farmers to support community development and farm sustainability. The BSCFA alleges that Tate & Lyle and ASR-BSI withheld these funds and instead distributed them to other associations, in what they characterize as a coordinated effort to pressure the BSCFA into accepting less favorable commercial terms.

The companies challenged the Belizean court’s jurisdiction, pointing to an expired commercial agreement requiring arbitration—presumably in the UK—as the proper venue. But the Supreme Court disagreed, siding with the farmers and clearing the way for the claims to be heard locally.

The Farmers’ Position

Speaking after the decision, BSCFA attorney Magali Marin Young called the ruling “a green light to proceed.” She emphasized that the claims go beyond simple contract disputes:

“When the agreement expired in 2021, BSCFA was actively agitating to renegotiate the terms of the commercial agreement. That is when Tate & Lyle started refusing to engage and began finding excuses to deny payment.”

According to the BSCFA, this pattern of conduct amounts to a breach of trust and a deliberate strategy to weaken the association’s bargaining power.

Why It Matters

This is more than a contractual skirmish—it is a critical moment for Belize’s cane farmers, who have long struggled to secure fair compensation for their product in a supply chain dominated by multinational corporations.

The court’s decision means:

• Belizean producers will not be forced to litigate abroad under prohibitively expensive arbitration regimes.
• The allegations will be aired in public view, rather than behind closed doors.
• The principle that Fairtrade premiums belong to farmers—not exporters—will be tested in court.

For many observers, the ruling symbolizes a shift toward greater accountability and respect for producer rights.

What Comes Next

The victory, while significant, is only the beginning of what promises to be a long process. The case now enters the case management phase, where the parties will exchange witness statements, disclose documents, and prepare for a full hearing. Tate & Lyle has indicated it may appeal the jurisdiction ruling, a move that could further delay resolution.

But for now, BSCFA leaders say they are ready for the road ahead. As Marin Young put it:

“We have prepared our clients for the long haul because we expect every single technical application to be filed against this claim to delay.”

A Precedent in the Making

The outcome of this litigation could set a precedent for how global supply chains treat small producers in Belize and across the region. If the farmers ultimately prevail, it will affirm the idea that Fairtrade is more than a label—it is a commitment to equitable treatment that can be enforced in court.

As Belize’s sugar industry continues to evolve, this case is likely to define the balance of power between growers and exporters for years to come.