Latest update November 23rd, 2024 1:00 AM
Sugar factories need US$95M repairs
Guyana Sugar Corporation (GuySuCo) has completed its latest strategic turnaround plan which focuses mainly on mechanisms to increase production. However, this plan reflects a need for $19B (US$95M) to Capital Expenditure Plan for the improvement of Agriculture operations and rehabilitation of Factories over the next five years.
Minister of Agriculture, Dr. Leslie Ramsammy
When the Opposition, in the Committee of Supply, approved the $6B budgetary allocation set aside for GuySuCo, it did so on the grounds that it will be provided with a credible programme to resuscitate the industry.
Minister of Agriculture, Dr. Leslie Ramsammy, had promised that he would take before the House a strategic turnaround plan that would serve as a “credible programme to resuscitate.”
A Partnership for National Unity (APNU)’s shadow Minister of Agriculture, Dr. Rupert Roopnaraine, told Kaieteur News a few weeks ago that he would be holding Dr. Ramsammy to his promise to take a rescue plan for GuySuCo to the National Assembly by June.
Dr. Roopnaraine said that he and his team are not looking for the regular run of the mill report and suggestions, “…We need this plan to be as realistic as possible giving its critical nature.”
GuySuCo had at least two other turn around plans before. Dr. Roopnaraine told Kaieteur News that the last turnaround plan has been over taken by reality as projections for 2013 failed.
The new “strategic” plan is said to be based on the initiatives put forth in the original Strategic Blueprint and new initiatives put forward by Estates and other “key management personnel.”
Kaieteur News saw the report which it understands has already been handed over to Parliament office.
GuySuCo stated in the report that with the declining yields, sugar recoveries and production levels experienced over the last few years has resulted in declining profitability and liquidity.
The decline in world market price of sugar and the expiry of the European Union Sugar Quotas in 2017 has caused “the Corporation to present this Strategic Plan 2013-2017, in order to revive the industry, improve production levels and return the Corporation to a state of profitability and a cash positive balance.”
GuySuCo, as reflected in the report, intends to convert mechanically friendly layouts to full mechanization. Kaieteur News understands that a total of 22,724 hectares will be converted by 2017. This would not only help to increase production but would be a desired alternative as labour supply continues to dwindle.
Also, moves will be made to increase partnership with private cane farmers’ especially at Uitvlugt Estate where this partnership commenced in 2013. This, GuySuCo said, would increase the amount of cane available to be processed.
The entity also plans to return to best practices “e.g. elimination of the fifth plus ratoons and increased flood/legume fallowing. With the reduction of ratoons, cane yields will improve significantly.”
The plan states that there will be improved accessibility in the cultivations and that GuySuCo will continue to produce and market value added sugar particularly bearing in mind the 2017 EU reforms.
Notably, there will be a review of GuySuCo’s Procurement Policies.
The report states that drainage and irrigation will also be addressed and already established programmes to address such will be continued.
GuySuCo, in its report, said that these initiatives are expected to lead the Corporation to produce almost 350,000 tonnes of sugar by 2017. These initiatives are expected to lead the Corporation to produce almost 350,000 tonnes of sugar by 2017, reduce the overall cost of production by 23 per cent and return the Corporation to profitability in 2015.
“This plan assumes all eight estates and seven factories to be fully operational for the duration of the plan, all working together toward achieve the Industry’s goals and objectives. Each estate management put forward their strategies for the improvement of their cultivation and factory. This is consolidated within this plan, the report stated.
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