Belize's Agricultural Giant: Uncovering The Country's Top Export Crop

Belize's economy is largely based on agriculture, tourism, and services. In 2018, the country's main exports were sugar and molasses (30%), bananas (18.5%), citrus fruits (15.7%), marine products (10.7%), and crude petroleum (6.3%). In 2021, the country's top five exports were raw cane sugar, bananas, beer, frozen rock lobster and other sea crawfish, and frozen orange juice. While the exact figures for the largest agricultural export from Belize are unclear, it is likely that sugar, bananas, or citrus fruits are the largest agricultural exports from Belize.

Sugar exports to the US and EU

Sugar is one of Belize's primary exports, alongside citrus fruits and bananas. In 2018, sugar and molasses made up 30% of Belize's exports, and sugar accounted for two-thirds of total exports. Sugar is exported to the United States and the European Union (EU), and some sugar is converted into molasses for rum distillation.

Belize's sugar industry is critical to the country's macroeconomic and social stability, particularly in Northern Belize, where most sugarcane is grown, and about 85% of the population depends on the sugar sector. The industry accounts for about 4-5% of GDP, 9-10% of total exports, 8% of employment, and 5-6% of foreign exchange earnings. Sugarcane is also used to generate electricity, supplying about 15% of the country's electricity needs.

However, the sugar industry in Belize faces several challenges. Firstly, the reform of the EU sugar regime, which removed quotas for domestic sugar beet production, has resulted in a significant drop in EU sugar prices. This has negatively impacted Belize's sugar exports to the EU, which is its main market. Secondly, production costs in Belize are relatively high due to low cane field productivity, low cane quality, inefficiencies in harvesting and delivery, and high transportation costs. To remain competitive in the global market, Belize needs to reduce its production costs by at least 30%.

To address these challenges, Belize has implemented several strategies. The government amended the Sugar Act in 2015 to allow the formation of new farmers' associations, which helped resolve disagreements between sugar manufacturers and farmers. Additionally, the government is working on a Strategic Development Plan (SDP) that aims to create a more favourable business environment and make the industry more sustainable. The plan includes improving cane productivity and quality, reducing inefficiencies in harvesting and delivery, providing technical support and affordable credit to farmers, and ensuring infrastructure support for the industry.

Belize has also attracted foreign direct investment in the sugar industry, with American Sugar Refining Inc. (ASR Group) acquiring a majority stake in the domestic sugar manufacturer Belize Sugar Industries Limited (BSI) in 2012. ASR has invested in improving mill efficiency and expanding production capacity.

Belize's sugar sector is expected to continue playing a significant role in the country's economy, but it will need to adapt to the changing global market and address the challenges of remaining competitive, especially in light of the EU's sugar regime reform.

Citrus fruits and bananas

Despite these challenges, Belize continues to be a significant exporter of citrus fruits and bananas. In 2010, Belize exported around 90 tons of bananas, primarily to the European Union. Citrus fruits and bananas benefit from preferential trade agreements, such as the Caribbean Basin Initiative, which allows them to enter the United States duty-free. These trade agreements have helped maintain the competitiveness of these industries in the global market.

The success of citrus fruits and bananas as export crops has also led to the development of related industries in Belize. Citrus Products of Belize Ltd., for instance, is the main processor of citrus fruits, working closely with the Belize Citrus Growers Association. Similarly, the Banana Growers Association plays a crucial role in managing banana production and exports.

In conclusion, citrus fruits and bananas are a vital part of Belize's agricultural sector and contribute significantly to the country's economy. With their high export earnings and global demand, these fruits are likely to remain important for Belize in the years to come.

Marine products

Belize's fisheries sector directly supports over 2,500 fishers and indirectly benefits over 15,000 Belizeans. The industry is crucial to the country's economy, and the government has implemented initiatives to promote sustainable trade and economic growth in this sector.

The country's marine exports have been steadily increasing, with a focus on spiny lobster and queen conch, which are now considered mature fisheries. Deep-sea fishing has been identified as a potential area for commercial expansion. The government and various stakeholders are working together to maximise the benefits of Belize's ocean resources while maintaining ecosystem health.

The seafood processing sector is also significant, supplying the tourism industry and exporting products globally. This sector includes the processing of spiny lobster, queen conch, and finfish. The government is committed to increasing trade and economic growth in this sector while also prioritising sustainability.

Belize's marine exports are an essential part of the country's economy, providing income and employment for thousands of Belizeans. The government's initiatives to promote sustainable trade and economic growth in this sector are expected to have a positive impact on the industry and the country's overall economic development.

Crude petroleum

Belize's economy is primarily based on tourism, agriculture, and services. While tourism is the country's largest foreign exchange earner, the agriculture and agro-productive sectors are the second most important in terms of economic performance. In 2018, Belize's gross exports amounted to $200 million, with the main exports being sugar and molasses (30%), bananas (18.5%), citrus fruits (15.7%), marine products (10.7%), and crude petroleum (6.3%).

The history of oil exploration in Belize dates back to the 1930s, when oil exploration licenses were granted to major companies such as Shell, Esso, Texaco, Gulf Oil, and Chevron, as well as smaller companies and independent oil companies. Many seismic surveys were conducted, and the first exploration well, the Yalbac #1 well, was drilled by Gulf Oil in 1956. However, no commercial discoveries were made during this early exploration period.

The first commercial discovery of petroleum in Belize was made in July 2005 by Belize Natural Energy Ltd. (BNE) in Spanish Lookout. This discovery led to the development of the Spanish Lookout Oilfield, which currently produces an average of 900 barrels of oil per day. BNE made another commercial discovery in October 2008 in the Never Delay area, which led to the development of the Never Delay Oilfield, producing an average of 25 barrels of oil per day. BNE is the only producer of crude oil in Belize and exports its crude oil to Shell Trading.

Beer

In La Paz, Bolivia, locals have been creating coca-infused alcohol with the support of the Bolivian government. Coca leaves are steeped in water, similar to the process in clandestine cocaine labs, but instead of being used for narcotics, the liquid is infused with beer. The result is a beer with a sweeter taste that is more palatable to consumers.

The production of coca beer in Belize reflects a shift towards exploring alternative uses for the coca plant. With the crackdown on cocaine production, coca growers are seeking legitimate avenues to utilise their crops. This has led to the development of coca-based products such as beer, vodka, and rum.

In conclusion, while beer is produced and consumed in Belize, it is uncertain whether it qualifies as the largest agricultural export. The country's economy relies on a variety of industries, including agriculture, manufacturing, and tourism. Beer production, particularly the novel coca beer, is an interesting aspect of Belize's economic endeavours.

Frequently asked questions