The 2026 sugarcane crop is expected to begin later this month following the signing of an addendum to the commercial agreement between the Belize Sugar Cane Farmers Association (BSCFA) and Belize Sugar Industries Limited (BSI). The agreement was signed on January 7th and extends the existing commercial arrangement for another year.
Unlike previous years, the parties finalized the agreement without prolonged disputes ahead of the crop’s start. The commencement of the new crop season is also expected to prevent any interruption in the national sugar supply, benefiting key sectors such as tourism, including destinations like San Pedro on Ambergris Caye.
Following the signing, BSI stated in a press release that the agreement extension will facilitate a smooth start to the 2026 crop season. The company noted that the agreement was finalized amid an existential crisis facing the northern sugar industry. According to BSI, this crisis is being driven in part by climate-related challenges, including the spread of the Fusarium fungus, which has severely affected cane supply.
Both BSCFA and BSI have agreed to work collaboratively to support the successful execution of the 2026 crop. They also indicated that potential amendments to the Commercial Agreement may be considered based on recommendations from the Commission of Inquiry, which examined long-standing disputes and structural challenges within the sugar industry. Key recommendations issued for the 2024–2025 period include granting the Sugar Industry Authority increased authority and resources to guide the sector toward long-term sustainability.
The Commission of Inquiry also proposed fairer revenue-sharing mechanisms to level the playing field between cane farmers and factory owners and ensure equitable earnings. Long-term viability of the industry was a central theme, with stakeholders, including BSI, committing to using the inquiry’s findings to inform future amendments to their commercial agreements.
The ongoing crisis within the agricultural sector has raised concerns about a potential increase in sugar prices in Belize. In July 2025, the government attributed these concerns to the rapid spread of the Fusarium fungus, which reportedly caused losses exceeding $50 million. Authorities also reported a decline of approximately 25,000 tonnes in sugar output last year.
The possibility of increased sugar prices has drawn attention from consumers and business operators in areas such as San Pedro. As the country’s leading tourism destination, businesses on the island closely monitor sugar prices, as increases could affect the cost of baked goods and pastries sold in bakeries and coffee shops. However, to date, only packaged sugar has seen price adjustments due to added packaging costs. Currently, local grocery stores in San Pedro sell two-pound packages of brown sugar for approximately $2, while white sugar retails for about $1.50 per pound.
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