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GuySuCo anxious as rains dampen production hopes
The country’s ailing sugar industry is getting ready to welcome a new chief executive in early October, but his work will be more than cut out for him.
Not only are the rains badly affecting production, threatening a repeat of last year’s dismal performance, but with only four months remaining in the year, workers would be more than worried about the traditional production incentives.
The performance of the Guyana Sugar Corporation (GuySuCo) in recent years has been a major cause for concern and a source of embarrassment for the administration.
GAWU’s President, Komal Chand
Despite prices offered by Europe – Guyana’s biggest customer – being almost double on the world market, poor production has continued to threaten the viability of the industry. Workers have also been leaving in droves for the construction industry and the gold bush.
While two trial starts have been made on the Skeldon factory, production for the second crop there is still to start, says Komal Chand, President of the Guyana Agricultural and General Workers’ Union (GAWU).
Fields remain wet, with use of the mechanical harvesters ruled out because of the existing conditions.
At Skeldon, several defects identified as hampering full production, have been fixed during the period between the first and second crop by South Africa’s Bosch Engineering, an independent company tasked with fixing a number of issues facing the factory.
One of the major problems with the cane dumper, a piece of equipment which takes the cane from the punts to the factory, will remain unresolved this year, the newspaper was told.
According to Chand, the union and GuySuCo’s biggest fears now remain with the weather.
The longer the canes remain in the fields and the longer it rains, the less sugar will be produced as the sucrose content lessens over time.
During the first crop this year, production plunged to 48,000 tonnes, or about 23,000 tonnes below the target. For this crop, GuySuCo has set an industry target of 155,000 tonnes.
“The mechanical harvesters have not been able to operate as we are facing an unusually bad weather pattern.”
The industry barely managed half of its projected target of the 38,000 tonnes planned for the week ending August 9.
Also badly affected by the rains and not operating as yet is the Uitvlugt Estate, West Coast Demerara.
Regarding concerns over the capacity of Skeldon to handle the hefty demand that will be needed in coming weeks, Chand stressed that it was too early to say whether the repairs to a number of identified defects will be making a positive impact.
“Let’s us just wait and see. I think it is too early, but we are hopeful and positive that this crop will make the target.”
Government has been facing significant flak over the Skeldon project which has failed to live up to expectations.
Meanwhile, the union is also hopeful that the Enmore Sugar Packaging Plant will be bagging a significant amount in the coming weeks. With GuySuCo racing to make the 190,000 tonnes quota as demanded by its European customer, there is little sugar left for the packaging plant.
Demerara Gold has been gaining traction in the regional market with Trinidad and Tobago, and even St. Maarten, snapping up the sweetener like hot cakes.
Bad weather has left these cane harvesters parked.
The industry has been battling poor yields, strikes and the weather in recent years.
Workers, over 16,000 of them according to GuySuCo’s estimates, also would be paying attention to the crop, as its final outcome would dictate whether the Corporation would be able to pay bonuses.
Kaieteur News also understands that unconfirmed reports that GuySuCo’s current Chairman, Dr. Raj Singh, is more than likely to take up the position as Chief Executive Officer from October, is more than rumour.
The current Chief Executive Officer, Paul Bhim, will reportedly be Singh’s deputy, one senior GuySuCo official said Friday.
Government had signaled a management and board shake-up after a “turnaround” plan failed to change GuySuCo’s fortunes for the better.
Last year, Government plugged $5B in the form of a cash boost to the state entity.
The total industry production for the year 2012 was 218,069 tonnes, the lowest in over two decades.
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