Latest update March 24th, 2025 7:05 AM
First crop grinding cancelled at US$200M Skeldon Estate
-after co-generation plant deemed unsafe
-production target uncertain as heavy rains affect production
In a major blow, there will be no first crop for the Skeldon estate after officials warned that the co-generation plant that powers the facility is unsafe.
There will be no first crop at the US$200M Skeldon factory, Corentyne, because of an unsafe power plant.
This latest development will negatively affect the target of 74,172 tonnes of sugar that the industry has set for the first crop by more than 8,800 tonnes.
It will also lead to a further blow the Guyana Sugar Corporation (GuySuCo) which badly wants the factory, commissioned in 2009 to finally perform.
The co-generation plant, like the rest of the factory, has been blamed for helping to drag the sugar industry down with billions of dollars being expended by consecutive governments to fix the technical issues that have arisen.
The co-generation plant was a major part of the factory that was supposed to use a variety of fuel sources to provide power to not only the factory in Berbice but also and eventually the Demerara grid.
It was commissioned by former President Bharrat Jagdeo as the answer to the sugar woes.
A critical inquiry report has found worrying signs of disrepair and negligence.
However, poor maintenance due to cash contracts and bad managements have created headaches for GuySuCo.
A deal was struck a few years ago with the co-generation facility sold to Government in return for cash from the Guyana Power and Light Inc. for the cash-strapped GuySuCo.
GuySuCo also announced yesterday this year’s first crop is also taking a beating from its old enemy- the weather.
GuySuCo explained yesterday that the first crop for this year commenced during the week ending February 18, at Uitvlugt and Blairmont Estates.
“These estates are currently in their second week of the crop. There has been a total of 74mm and 78.8 mm of rainfall to date respectively. The Albion Estate, on the other hand, which is currently in its first week of the crop, is facing a similar challenge. This estate has been subjected to 55.8mm of rainfall up to yesterday.
Further, with 42.6 mm of rainfall recorded at Rose Hall Estate, the field and factory operations have since been delayed.
The estate was scheduled to commence cane harvesting on Wednesday February 22, 2017 and factory operation today.”
GuySuCo noted that it has two crop seasons–the first is usually from mid-February to May while the second is from August to mid-December.
However, over the past decade, the pattern of rainfall has been erratic and has disrupted production at critical periods – at the beginning and various other points during both crop periods.
Last year, after reaching its 2015 target for the first time in a decade, GuySuCo’s production of sugar fell from over 220,000 tonnes to just over 188,000 tonnes.
In addition to low prices, sugar is being produced more than two times the price it is being sold for. Consecutive governments have been doling out billions of dollars annually to keep the 17,000-worker strong industry alive.
The current administration has announced plans to cut costs and get rid of non-performing operations.
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