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Sugar concerns in GuySuCo
Jun 18, 2011 Letters
Dear Editor,
Recently, it was claimed that the current sugar crop produced by GuySuCo was the largest in recent years. In a previous article, it was reported that the European Union (EU) Representative in Guyana noted that this year’s projected sugar production was overly optimistic and unattainable. His comments drew the ire of the Minster of Agriculture who rebutted with Guyanese opprobrium, instead of tactful professionalism. The EU, after all, is the single largest buyer of Guyanese sugar and perhaps the only source of a foreign currency welfare transfer to GuySuCo.
It might be of interest to find out whether the European Union Representative was right about this year’s production, given the new information that is available. Maybe the CEO of GuySuCo can address this issue and provide information on the cost of production and the selling price for a pound of sugar.
This information is important because financial viability questions must be addressed by GuySuCo, for quantitative production targets without corresponding financial and economic indicators are meaningless, especially in an industry that is short of capital and has labour, technology, water, management, marketing and pricing problems. Moreover, raising capital in private markets to fix the problems in GuySuCo is not likely, as it is not a financially viable entity. The Guyana Treasury will again rescue GuySuCo; the sale of GuySuCo land for housing is one example of such a transfer; and obviously, a new welfare transfer from the Treasury is in the making. The timing, however, of such a transfer is uncertain, but it will be before year-end.
A second reason for making public the financial information is related to the fact that it is likely that Guyana can buy sugar cheaper at world market prices, as was the case recently when sugar was imported not so long ago. The local press should follow this up.
A visit to the GuySuCo website (http://www.guysuco.com/about_gsc/gsctoday/ssmp/default.asp) has the following information. The Skeldon Project will be a major contributor to reducing the cost of production; improving sugar quality; increasing production (in excess of 450 000 tonnes); enhancing sucrose recovery; reducing operational costs; improving operational efficiencies; attracting carbon credits.
Given the fact that the Skeldon project has been in the making from at least 2006, some five years ago, the CEO should report which of the above objectives have been achieved on this costly US$200 million ‘white elephant’.
C. Kenrick Hunte
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