Sugar continues to see miserable performance

Aug 05, 2017 News

As many predicted, the sugar sector has once again churned out another miserable performance for the first half of the year.
This was reflected in the Mid-Year report which was released by the Finance Ministry yesterday.
The document reveals that the production of sugar was recorded at 49,606 tonnes at the half year, compared to 56,645 tonnes during the first half of 2016. This represents a decline of 12.4 percent.
The Ministry of Finance said that this shortfall was mainly due to no production at the Skeldon estate, because the boilers were unsafe and required significant repairs. Further, it said that cane yields were 50.2 tonnes per acre in the first half of 2017, up from the 45.2 tonnes achieved in the first half of 2016, but below the targeted 54.3 tonnes for this year.
Among other factors that affected sugar production were the late supply of critical operating materials such as fertilizer; pest damage, particularly at the Blairmont and Uitvlugt estates; unfavourable weather; and strikes and absenteeism.
As a consequence, the Finance Ministry said that the industry was unable to reap its entire first crop, with approximately 150,000 tonnes of cane being carried over to the second crop of 2017.
The Ministry said that despite weak performance in the first half of the year, production in the second half is expected to be on target. It noted that the sugar industry continues to take measures to address its unsustainable cost structure including the rationalization of existing estates.
In this regard, the Ministry said that preparations will begin for the divestment of the Skeldon estate. It said, too, that Wales and Uitvlugt estates will be amalgamated and farmers reassigned to the Uitvlugt factory. Albion and Rose Hall estates will also be amalgamated.
During this process, the Finance Ministry said that the retention of workers will be paramount, with some lands being leased to workers in order to facilitate their engagement in other agricultural pursuits.

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