More private farmers, mechanisation eyed for sugar turnaround

Jan 18, 2011 News

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… 2010 earnings plunge 13 per cent

Lower sugar exports coupled with an almost 10 per cent decline in export price saw Guyana’s cash receipt for this big earner sliding 13.2 per cent to US$104M last year.
According to Minister of Finance, Dr. Ashni Singh, during his budget presentation yesterday, the industry facing unprecedented problems with labour and cash, has several urgent priorities to turn its fortunes around.
These include cane availability, with expanded acreage under cultivation along with higher levels of participation by private cane farmers, and mechanisation with the acquisition of additional mechanised harvesters, cane loaders, tractors and haulage units.
Further, repairs will be completed to the No. 1 boiler at the new Skeldon factory which went down last year, and with other defects at the factory corrected, the expectation is that the factory will function at full capacity by the second crop.
“Other factories will be subject to heightened maintenance and key equipment replacement so as to increase efficiency of operations. In addition, the Enmore packaging plant will be completed and brought into operation increasing value added output.”
According to Dr. Singh, Guysuco is projected to incur this year, total capital expenditure of $4.3 billion on these and related projects.
“Taken together, these factors should enable the company to recover its production levels and restore its financial performance.”
The Minister, acknowledging that 2010 was a “disappointing” one for the sugar sector, admitted that this would be an understatement of considerable proportions.
“Several factors contributed to the industry’s weak performance. Irregular weather patterns contributed to loss of cane as a result of limited availability of water irrigation at times, hindered cane transport from field to factory, and resulted in loss of sugar content.
In addition, poor labour turnout was reflected in a 52 percent crop attendance by cane harvesters as compared to 62 per cent and 72 percent in 2009 and 2008 respectively.”
This, the Finance Minister said, is partly reflective of structural changes in the labour market induced by alternative employment opportunities being pursued by the existing workforce. “Further, the new Skeldon factory continued to be beset with challenges constraining its operation.”
According to the Minister, the difficulties confronting the sugar industry are well known and have been ventilated.

Expectations
“Government has made clear to the industry our expectations with respect to implementation of the plans and achievement of the goals set out in the turnaround pan, including as they relate to increasing the acreage under cultivation, raising the conversion rate of cane to sugar, generating efficiency gains from increased mechanisation, and improving industrial relations between the sugar company and its workers.”
Already, Dr Singh said in his budget speech, the industry has given “certain assurances” that provide some room for confidence that the turnaround will be accomplished.
“As has previously been stated, the industry has no option but to ensure that the investments already made yield the returns expected of them. In 2011, reflecting the industry’s expectation of a recovery to production levels previously achieved, sugar production is targeted at 298,879 tonnes, 35.3 percent above 2010 level of production.”

Rice growth
Meanwhile, regarding the rice industry, the Minister was upbeat about the industry which, despite fluctuations in weather conditions, recorded “yet another exceptional year on both the production and export fronts. Two seed dryers were acquired and their installation would be completed in January 2011 at the research station at Burma…”
A new seed facility at No. 56 Village is also planned for completion during the first quarter of this year.
“Thirteen drying facilities were constructed in Regions Two, Three, Four, Five and Six in order to reduce the spoilage of paddy.
Meanwhile, on the rice development front, two new varieties were released in 2010 and two candidate varieties, currently under the final stages of testing, will be released in 2011.”
According to Dr Singh, so as to ensure sustained performance by the sector going forward, “government continues to provide substantial support in the areas of improved drainage and irrigation facilities, new and improved farming practices including weed and water management, plant nutrition and other agronomic practices, the evaluation of pesticides for weed, pest and disease control and the sourcing and testing of over 300 additional rice germplasm lines for possible release as varieties in the sector.”
This year, the rice industry is projected to increase its production even further- to 379,628 tonnes which would be the highest ever level of production- and which could generate a 4.9 per cent increase in value added.
“This reflects increased yields from the fields as farmers benefit from improved varieties of rice and also the expectation of favourable weather conditions. In addition, the securing of better export markets has also been a benefit to the industry.”
Last year, the industry recorded its highest rice output of over 360,000 tonnes.
In the area of livestock, the industry is conservatively expected to maintain its level of output in 2011, while the other agriculture sector is projected to grow by two percent, “reflecting the returns on the agricultural diversification programme and the Grow More Campaign,” Dr Singh assured.
“Output in the forestry sector is targeted to decline by 1.4 percent, especially given the halt in plywood manufacturing capabilities for at least the first part of this year. Although the fishing sector performed well in 2010, it is only projected to grow by 0.4 percent in 2011, as systems are being put in place to ensure the sustainability of the industry and maintenance of fish stocks.”

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