BY ERWIN ‘AMBO’ DELILAN
THE LUCIO TAN-led Victorias Milling Company (VMC) is currently “at war” with over a thousand sugar planters in Negros. What an uncanny story that made “storm” in most coffee shops in Bacolod, Silay and Victorias. It even subjugated local anti-COVID-19 vaccination stories and juicy political updates.
But in case this current conflict can’t be cured sooner, no doubt it’ll result to an abysmal crisis, putting anew the sugar industry in a “bad light”.
The melee is between the VMC management and Victorias Milling Company (VICMICO) Planters’ Association.
VICMICO, per record, has around 1,500 planter-members and the biggest planters’ association in northern Negros so far.
VMC, on April 26, 2021, through an official letter, informed VICMICO of its decision to cut their business ties with the association.
Such can be called a tragicomic decision. Because it could either cause tragedy on the sugar industry or comical effects to the mill management, considering that sugarcane is the firm’s “lifeblood” still.
Thus, cutting ties with VICMICO, by all means, will cause a super reduction in the volume of millable canes (in hundreds of thousands of tons) to be hauled to VMC.
So as expected, VICMICO through media, immediate threw repugnant accusation(s) against sia’s sugar-producing giant.
Then it made a “tell-tale” episode, employing explosive terminologies that shocked the public.
Through an open-letter entitled: “What Really Died?”, VICMICO enumerated many of its grievances toward the VMC management. And one of the “heaviest jabs” it released against VMC was likening the latter to a dictator.
In an interview, VICMICO president Aurelio “Budi” Valderrama expressed dismay over the recent decision of VMC against their association. He said they simply raised concern over confusion on the purity of the cane (purisa) and bagasse (bagaso) issues.
“Tam-is ang amon tubo mag-sulod sa central, pero nubo ang purisa maguwa. Bagaso namon P10 lang ang bili kada tonelada,” his direct quote in Hiligaynon.
Confided Valderrama, their planter-members were tempted to mill their canes with other sugar centrals due to attractive purisa rate.
VMC’s bagaso price at only P10 per ton is also way below the P2,400/ton in other sugar centrals.
Bagaso is one important thing for VMC. They used it to fuel their 40-megawatt (MW) biomass power plant located within its mill site in Victorias City.
Valderrama stressed they just want integrity and transparency from VMC. But they gave us a letter suspending our business ties instead, he said.
VMC, the report said, got irked not just with VICMICO but with Valderrama, too. Much more when it knew that VICMICO had put up a loading station in Hacienda Rosalia in Manapla town for their sugarcanes to be hauled and milled at the Hawaiian Central Philippines in Silay City.
It accused VICMICO, especially Valderrama, of campaigning among their members not to mill with VMC anymore, added the report.
Valderrama vehemently denied such claim.
To make the long story short, animosity enveloped both camps.
Alarmed by the current hullabaloo, the Confederation of Sugarcane Planters’ Association (CONFED) immediately stepped in to the mess.
CONFED is one of the powerful and influential blocs of sugarcane producers in the country. And VICMICMO is one of its members.
So through a public statement, it also appealed to VMC to reconsider its decision, and treat VICMICO not as an enemy. Rather, it wished for an immediate solution to the problem.
This, as CONFED president Raymond Montinola stressed that ever since VICMICO is of good standing at CONFED. And if their melee will escalate sooner, Montinola is worried that it will affect the nearly 1,500 planter-members of VICMICO. It will also result to reduction of cane volumes to be milled with VMC.
This, as Valderrama already warned that from the usual 450,000 tons per year, VICMICO may only have 50,000 tons of canes to be delivered to VMC starting next year.
CONFED newly-hired adviser Lito Coscolluela, on the other hand, believes there’s still hope to resolve the matter. Dialogue is the key, he said.
He theorized that, probably, the mess was simply caused by the tone of voice and certain demeanors that led to nastiness.
But if worse comes to worst, Lito said, it’s potentially logical to look for a third party to mediate on the issue.
CONFED could also be the “best” mediator, he said. “I hope they’ll just open their doors for dialogue.”
Both, said Lito, need to lay down all the concerns, evaluate and address them one-by-one.
Aside from purisa and bagaso, Lito said, other issues need to be tackled and addressed including the payment of social amelioration, quedan, storage fees, among other onerous penalties reportedly imposed by VMC to VICMICO planter-members.
And if all this remains unsettled, such will surely bring the energy of people from both parties to inconvenient situations. And Lito, the “best catch” for CONFED, termed it as disruptive.
But VMC’s Investors Relationship Manager Anne Tiongco said, “VMC is open to any
VICMICO member who may wish to affiliate with other planters’ associations and continue to mill with VMC. ”
The gist of Tiongco’s statement seems to be conclusive that VMC is totally closing its door for VICMICO planters. She’s simply relaying the company’s message of invitation to VICMICO planter-members to “jump ship” now to other planters’ associations in the province for them to be catered by VMC.
This is alarming and, perhaps, a provocative statement coming from VMC, known for high quality and excellence before.
After dissecting and deciphering the issue, correct me if I am wrong, I can say it’s not complicated anyways. VICMICO is simply demanding two things from VMC – integrity and transparency in their decade-old dealings. Openness from both sides is the key.
For VMC to act like a “brat” as what VICMICO perceived is leading to disaster. VMC people should take note that Negros planters will always back their fellows.
And, except for the Agrarian Reform Beneficiaries (ARBs), they’re also capable of being “bratty”, too.
So if it’s “brats versus brats”, consequences happen sooner, and Negros can expect a “high-end war”. And it’s bad for sugar industry and Negros economy as well.
Like Lito, I also hope and pray that the current mess will not reach the level of “touch me, and you’ll burn” status. VMC must be cautious enough, and refrain from provoking Negros planters.
For proper guidance, VMC, too, must study the history of the sugar barons in Negros and their respective descendants. But better for them to ponder upon the notable philosophy of universal banker Manuel Joojo Hanson: “Businesses thrive on honesty, integrity and transparency.”
With that, it’ll never go wrong./PN
