Five facts about GuySuco people need to know

Jul 13, 2017 Letters

Dear Editor,
I refer to the news item in your edition of June 29th, 2017- “GuySuCo now produces sugar three times world market price”. In juxtaposing the realities of world sugar trading and market dynamics with Guyana’s vision/strategy for the industry as described in the State Paper, one can only conclude that decision making on the sugar industry is intellectually sterile, a signature mark of its Chief Executive Officer. I wish to support my conclusion by presenting some facts and allow readers to make their own assessment:
(1) GuySuCo is recording cane yields at about 52 tonnes cane per hectare (TcH) when it should be over 70 TcH. The low productivity is attributed to poor agronomic management and thus the high production cost.
(2) Raw Bulk Sugar for refining has historically been trending as the lowest priced product. With changes in sugar protocols and World Market trade, it is no surprise that the Raw Bulk Sugar price is hovering at US$275/t though GuySuCo hid from the public that its sugar sales is conducted in markets fetching at the lowest US$475 per tonne.
(3) Direct Consumption Sugar is a higher priced product selling at US$550-1,000/t.
(4) GuySuCo presently has two (2) factories namely, Blairmont and Enmore capable of producing Direct Consumption Sugars. Of these two (2) factories, Enmore Factory has superior capabilities.
(5) GuySuCo will close the Enmore Factory by end of 2017, a more superior factory that can produce a product which sells at US$550-1000/t.
Editor, GuySuCo is now bellyaching to this nation about cash-flow on one hand, because it will earn US$275 per tonne of sugar – an untruth – while, on the other hand, it is closing a factory that can earn US$550-1,000 per tonne of sugar. In effect, the Corporation is reducing its own capacity to earn less. Isn’t this clumsy from a business perspective? The Ex-Member of GuySuCo’s Board and Ex-Diversification Coordinator, Mr. Anthony Vieira, must to be correct in his recent pronouncements about the Corporation on the television progarmme, Plain Talk (June 7th, 2017) that “in GuySuCo’s case, ignorance and stupidity and incompetence can’t cast out ignorance and stupidity and incompetence”.
Sookram Persaud

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