PRESS RELEASE
23 December 2023
BAMC OPERATIONS DIVESTED
In August 2023, we informed our members, and the Co-operative Movement in general, that the Barbados Sustainable Energy Cooperative Society Ltd (CoopEnergy Barbados) had entered into discussions with officials of BAMC to take control of that operation in government’s scheduled divestment of such assets.
We are pleased to advise that this sensitive and complex transfer of ownership process is now completed, and that, effective 19 December 2023, the former BAMC has now been divided into two distinct companies – The Agricultural Business Company Ltd (ABC Ltd), and the Barbados Energy and Sugar Company Ltd (BESCO Ltd), both of which have been established with 55% equity allocated to CoopEnergy Barbados. The remaining equity will be held by workers (20%), and government.
ABC Ltd will manage the over 4500 acres of farmlands held through a number of plantations, and BESCO takes control of the island’s only sugar factory at Portvale.
The local sugar industry has undergone a very dismal performance in recent decades. There have been various reasons for this poor performance, and it has been clear for a long time now, that the operation as structured, was not sustainable in the long term. It became even more critical with the current fiscal challenges faced by the country, that major change was needed.
When government took the decision to divest itself of the operations of the BAMC, CoopEnergy undertook the challenge of leading the needed reform of this iconic industry for a number of reasons;
• The sugar industry has become a vital aspect of what defines Barbados. It’s topography, culture,environment even our non-sugar agriculture revolves around sugar.
• To safeguard the interests of the thousands of hardworking employees who have contributed tothe massive value that the sugar industry has brought to this country over the centuries.
• To introduce on a national scale, the concept of Cooperative Ownership, inverting the traditional top-down ownership model that has dominated the industry
Working with the various stakeholders, we have already identified exciting potential for that industry’s assets to perform outstandingly well, even in the traditional production areas, and then especially so in the emerging sustainable energy arena.
We are fully aware that major changes will be unavoidable – if the Sugar industry is to see a turn-around in profitability. Exactly such changes will be coming to the existing sugar operations under CoopEnergy management. It therefore cannot, and will not be business as usual.
Major change has already begun at the National Policy Level where Government has taken the revolutionary decision to transform all former workers in the operation into significant shareholders. At the same time, CoopEnergy will be introducing the Cooperative Ownership approach and I am happy to say that so far, all parties have been excited about the new approaches being taken.
With thousands of sugar industry workers, retirees, and Co-op members now owning the equity in these businesses, we all will be highly focused on growing these member investments, and doing so through the profitable operation of the two new companies.
As has been the tradition, the operations will be closed for the Christmas period and will reopen in January under completely new arrangements. There will then be a 5-month transition period, ending May 31, during which management and Staff (at all levels) will collectively develop the permanent new operational model for the two companies.
By week 1 in January, all employees being hired will be notified, however we will be interacting with all former workers of BAMC (who are now shareholders of the businesses) on an ongoing basis as we go forward with the transition.
It has been a long and complex process to successfully complete this transfer of ownership to CoopEnergy. We recognize and appreciate the support, encouragement, vision and cooperation of the Minister of Agriculture, Hon Indar Weir MP, BAMC Chairman Dr Clyde Mascoll, the Board and staff of BAMC, and of course the various teams representing CoopEnergy. By no means least, we acknowledge the role of the initial process facilitator – Mr David Straughn.
CoopEnergy Barbados is very excited to be a part of this historic transformation of the centuries old Barbados Sugar industry into a cooperative – business entity. This has now transitioned ordinary workers and ordinary citizens into substantial shareholders. It represents a major reversal of the ownership structure of a key sector of the Barbados economy by way of Co-operative Ownership.
Trevor Browne Lt Col (ret’d), SCM, CCM, FBAPE, President, CoopEnergy Barbados
23 Dec 2023
The blogmaster invites you to join the discussion.