BMDC TO INTRODUCE NEW RICE GRADING SYSTEM

July 28, 2010

The Belize Marketing Development Corporation (BMDC) is currently finalizing details for a new rice grading system. Discussions were held last week with the Ministry of Agriculture and the Toledo Grain Growers Association. Managing Director of the Belize Marketing and Development Corporation Roque Mai says they are looking at implementing the new system in as early as the next crop. Consequently, he adds the BMDC is asking farmers to focus on this year’s first crop only.

Roque Mai

“This is to have the farmers get prepared. In other words some day or the other they will have to get prepared at the CARICOM level. What the ministry is saying is that we have to market quality rice. We are telling the farmers that it is time to get your act together, let’s focus on quality. That is the reason why this year we are telling the farmers that we just want them to plant the first crop, let’s not focus on the second crop.” 

Although farmers have expressed interest in increasing production, prices are falling. In Mexico the price has also fallen to just below a dollar per pound of premium land grain rice. This subsequently increases contraband which then affects sales in Belize. Therefore, Mai says, they are stressing the importance to improve on quality and establish export markets before mass producing. Mai further adds that BMDC will maintain the current rice price but will be implementing stricter penalties to obtain the quality the BMDC will be looking for.

Roque Mai

“BMDC has to look at the export market which is our neighbouring country Guatemala. That is why we are encouraging farmers at this time now we are implementing a grading system. We are not reducing the price; the price is going to be paid but more penalties will be implemented. We prepared the farmers to be more aware and to prepare their plantation for next year’s production. It is not because we are discouraging farmers or to have anyone telling us we don’t want to pay you all.” 

According to Mai, in the 2009/2010 crop, rice production went over five point three million pounds of paddy but BMDC had only allocated funds for four point two million. Therefore they are discouraging a second crop this year to avoid running into problems with payments. However, there is currently about five million pounds of rice to be consumed within the Country and farmers are still producing.

Roque Mai

“They have informed us that there is going to be a six to seven million pound paddy produced in April in Toledo. That is over two million dollars total. We have to prepare ourselves for the financial institutions to have this money reserved for you all. If we go into a second crop we will run into trouble.”

As a result, BMDC will be accepting paddy until the end of January 2011. This was agreed upon at a board meeting at the BMDC headquarters where Toledo Grain Growers Association Chairman, Cristobal Villafranco was present. Deliveries will not be accepted in February and March. In regards to payment for last year’s crop, Mai says that two payments have been made and all outstanding balances will be cleared by August. For this year’s crop, BMDC has informed the Ministry that payments will be done in three instalments. The first will be paid upon delivery, twenty-five percent in December and the last twenty-five percent in February. BMDC only caters for farmers in the Toledo District where there are over seven hundred milpa farmers and a little over forty farmers who used a mechanized farming system.

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