There is a change in the sugar industry

Jan 16, 2009 Features / Columnists

The government has undertaken the management shake-up within the Guyana Sugar Corporation that was announced towards the end of last year and which had been on the cards for a long time. It became necessary as the sugar floundered, reaching production lows that could not be sustained or tolerated.
The management teams complained about poor worker performances, about strikes and about demands on a financial system that was becoming weaker with each passing year.
The government recognized that indeed the income for the sugar industry was weakened by the price cuts implemented by the European Union but the industry was aware that the cuts would come and that the only way to compensate for whatever revenue was lost would be to increase production and productivity.
Neither production nor productivity was happening. Instead, the management team planned targets which had to be adjusted downward. Last year alone, the target was adjusted downward by as much as close to 100, 000 tonnes, and at a time when the European Union price cuts were being felt, that could not be tolerated.
So there is a management shake-up and people who are capable of really managing the industry have been put in place. The new Chief Executive Officer has been with the industry for years and he has been known to successfully manage the finances of the industry.
The other members of the board are for the most part no strangers to the sugar workers and would therefore make an impact on the turn around of the industry.
It goes without saying that some of those replaced would not take kindly to their being replaced although they had been underperforming. They are going to seek out the critics and the government expects that many comments, some far from the truth, would be peddled in the not too distant future.
There are going to be new calls for a closure of the sugar industry because that was one of the calls by the critics who were quick to point out that some countries had abandoned sugar. What they would not say is that many of those countries did not depend on sugar for a significant portion of their Gross Domestic Product.
These countries were also dependent on Guyanese labour which, over time, was becoming scarcer and scarcer. In fact, it was Guyanese labour that boosted those industries. Guyanese pan boilers were crucial to the sugar industry in Barbados and when these skills disappeared, Barbados had no option but to close the industry.
In St Kitts, Guyanese provided the labour and when these workers decided that they had had enough and quit, St Kitts also had no option but to close the industry. In any case, the production was minuscule compared to Guyana’s.
The critics here must also realize that the sugar industry is undoubtedly the largest employer, accounting for some 9,000 workers. To close the industry would see a further 9,000 people out of jobs. The impact would be spread even further because each of those 9,000 workers has families who depend on them.
Businesses and residences that have sprung up around the sugar industry would collapse. One cannot imagine the impact of any closure. It is for this and other reasons that the government expected that the management would have been more aggressive.
Given the new changes, the turn around would not be immediate but there would be a turn around without which, the country would be in dire straits.
To help with increased production and productivity, the government invested heavily in a new and modern factory at Skeldon. It is true that there are delays in the construction of this factory to the point where the government has had to implement sanctions against the contractors.
However, the factory should be ready within weeks. The new management is expected to meet with private cane farmers with a view to getting them to cultivate added acreages. Where necessary, the government is going to help but it is the management that will have to ensure the expanded cultivation and the increased yields.
Right now the weather is not cooperating with these plans but an efficient management team has the capability to make meaningful adjustments.
The government has made its decision and while the critics who made theirs a long time ago will now seize on other areas within the industry, the nation will not blame the government because it knows the impact of a fall out from a failed industry.

Latest News

There is a change in the sugar industry

Related

Similar Articles

The Glenn Lall Show | November, 20th, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Rutherford gets big payday from Gujarat Titans at IPL 2025 Mega...

Roach and Seales star as West Indies close in on...

Delroy Tyrrell continues to excel at Oneonta...

Ramdass Royals Crowned Champions of the Inaugural...

KFC Guyana distance self from delayed payment of...

Ravens and Royals ready for epic Elite 16 final...

Features/Columnists

A call for more cultural centres

Rising Gun Crimes in the Caribbean: Urgent Action required by all

Political constants: opportunism, ambition or betrayal

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

There is a change in the sugar industry

Share this:

Related

Similar Articles

The Glenn Lall Show | November, 20th, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Features/Columnists

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]