GuySuCo projects 114,000 tonnes; union says improbable

Feb 19, 2020 News

…little preparation made to capitalize on growing world demand

The Guyana Sugar Corporation (GuySuCo) has projected a 114,000-tonnes target this year for sugar but the workers’ union has said that the target is improbable.
That production would represent an ambitious 26.5 percent increase for the corporation which has been struggling and fell to its lowest total in decades in 2019.
“In effect, the Corporation by its estimates is telling the nation that sugar production in 2020 would rise by 26.5 per cent when compared with last year’s production. This, whatever yardstick is utilized, is a significant increase and a feat that has not been strange to the industry in recent times.”
According to the Guyana Agricultural and General Workers Union (GAWU), it should be recalled that sugar production fell in 2016 by 26 per cent when compared to the 2015. In 2017 it fell by 33.5 per cent when compared to 2016.
In 2018, it went down by 31.2 per cent when compared to 2017, and in 2019 it dropped by 16 per cent when compared to 2018.
“All in all, the likelihood of the large increase forecast seems a steep hill to climb. GuySuCo had informed previously that it ended 2019 with some 151,000 tonnes of harvestable canes which it said could not have been milled for different reasons.”
Those canes, the union said, were capable of producing 17,000 tonnes sugar.
“To realise what the corporation said was possible, it would mean that approximately nine tonnes of canes would be required to produce a tonne of sugar. This, from our own knowledge, is simply not realistic. During the 2019 second crop, on average it required 11.81 tonnes of cane to produce a tonne of sugar at Albion, 12.95 at Blairmont, and 13.58 at Uitvlugt.”
GuySuCo has since 2015 faced the closure of four of what the Coalition Government said were the least functioning of its estates.
The three remaining estates- Albion and Blairmont in Berbice, and Uitvlugt on the West Demerara, have barely been scraping 100,000 tonnes.
Government has said that loss-making GuySuCo has been dragging the economy down with billions of dollars poured to keep it alive annually.
The closures of the estates- Skeldon, Rose Hall, Enmore and Wales- has evolved into a political battle.
According to GAWU, yesterday, its remains apprehensive about the functioning of the three factories.
“The Corporation did acknowledge that its factories suffered major mechanical failures during the 2019 second crop. From information we received, it is understood that not much was done during the out-of-crop period to meaningfully address these shortcomings.
“Workers have shared with us that defective components, in need of replacement, were simply removed, serviced, where possible, and re-installed. It gives us little hope that there will be much improvement and that the situation will be vastly different from what prevailed during the last crop.”
It was pointed out that another important element in improving production concerns the ability of the industry to till and plant fields.
“From those who may be unaware, cane fields are re-tilled and re-planted every five years. Thus, annually at least 20 per cent of an estate’s cultivation ought to be tilled and new canes planted in order to maintain acceptable levels of productivity.
For 2019, Albion tilled and re-planted 15.28 per cent of its cultivation, at Blairmont it was 14.35 per cent, and at Uitvlugt it was 15 per cent.”
Taking into account those facts, GAWU stressed that it brings into question whether the anticipated production growth is realizable or even feasible to begin with.
“Though the anticipated production is below the potential of the operable estates we still harbour doubt about whether it can be met bearing in mind the currently prevailing situation. Of course, GuySuCo’s production difficulties come when there is a worldwide shortage of sugar which will continue into next year.”
GAWU said that several credible sources have pointed out that global consumption will outstrip production by some 7.7 million tonnes this year.
“The shortage has served to push prices 12 per cent higher for the year so far. It is apparent, that though having the potential, the GuySuCo, from all appearances would, unfortunately, not be able to benefit, in a big way, from the price surge.”
The projected production for the three estates:

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News