Protecting Local Manufacturing in the height of a pandemic – Part 1

Jul 20, 2020 News

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– Morning Glory Inc. takes bold steps to remain viable

Among the many interconnected impacts of the global Coronavirus 2019 (COVID-19) Pandemic is the very real threat of food security. The United Nations World Food Programme has warned that due to the impacts on disruptions in domestic food supply chains, loss of income and slow down in remittances, the number of persons in the world facing acute food insecurity by the end of 2020 could nearly double, from 135 million now to 256 million by the end of 2020.

Many countries working with organizations such as the World Bank, are rapidly implementing appropriate food policy responses such as: treating agriculture and food production as an essential service, ensuring that specific standard operating procedures and guidelines are developed for workers along the food supply chain, ensuring that domestic food supply chains are supported in safety net programmes to ensure food gets to the most vulnerable in the society, and taking measures to protect domestic agriculture and food production.
In the Caribbean Region, according to an article in Forbes Magazine (Daphne Ewing-Chow,”Five Overlooked Facts About Caribbean Food Security”, 20 February, 2019, Forbes Magazine), the food import bill could reach US$8-10 Billion by the end of 2020. Food Security has long been one of the more acute challenges faced by the region, with only Haiti, Belize and Guyana producing above 50% of the food these countries consume. With tourism drying up due to COVID-19 and several of the Caribbean countries depending on tourism for as much as 50% of their GDP, the region it is believed, should be very focused at this time on how to harness the food production potential of Guyana, Suriname and Belize to prepare for a growing inability to afford its food import bill.
In fact,Guyana’s own Professor Suresh Narine, the Director of the Institute of Applied Science and Technology (IAST), who holds a Ph.D. in Food Science from the University of Guelph in Ontario, Canada and has been a Professor of Food Science, Chemistry and Physics and Astronomy in Canada for some 20 years, gave a lecture at the University of the West Indies in Barbados in November of 2018 which dealt with five major factors hindering Caribbean Development (See link for full video: https://www.youtube.com/watch?v=4HhKgjvTi4c). With the advent of COVID-19, the factors discussed in this lecture have become even more acute.
In Guyana, over the past five months, consumer sales for food products have fallen drastically as consumers focus only on the bare necessities and as at-risk income brackets being to rely heavily on Government and other forms of assistance. This has had a large impact on the viability of the food manufacturing sector in particular. Kaieteur News was pleased to discuss with Professor Narine some of the ways in which Morning Glory Inc., the producer of rice-based local Morning Glory Breakfast Cereal, is impacted and how the company is positioning itself for growth in a time when many others are potentially going out of business.

IMPACT ON SALES
Like most packaged valued added products, Morning Glory’s sales have recorded a significant decline during the COVID-19 months from February to June, 2020. Compared to the sales figures as of June last year, the product recorded a 40% decline in sales. Professor Narine explained that this is due in large part to the loss in sales to the National School Feeding Programme, which was suspended due to the nation’s schools being closed. Narine is hopeful that the relevant authorities will begin to realize that despite being at home, the nation’s school children are still in need of the nutrition supplement provided for them when at school and that measures will be put in place to reinstate the programme, to ensure the nutritional supplements can reach the children in their communities. Narine was quick to point out that this would also be in keeping with the kinds of policies that are being instituted by many other countries, working in collaboration with agencies like the World Bank and the United Nations World Food Programme.
Despite the decline in sales, Narine said that that the Morning Glory Board together with the various Heads of Departments at the Institute of Applied Science and Technology, which owns and operates the Morning Glory Facility, convened a special task force to examine how the public company can try to alleviate the extreme nutrition impact of the financial hardships introduced by COVID-19. The task force came up with several recommendations, some of which state that local public companies have a responsibility to the public and should be driven to sustainably alleviate the impact on the citizenry without endangering financial viability. The task force in its recommendations was keen to note that the COVID-19 constraints provide an imperative to seek technological solutions to drive efficiencies and reduce costs while adding that it also opportunities to partner with non-traditional partners to seek solutions that are both business oriented and socially conscious.
Narine pointed out that none of the recommendations are limited to only Morning Glory Inc., but can be employed by all Guyanese companies at this time.
REDUCING PRICES
In keeping with the first recommendation of the task force, Prof. Narine said that earlier in June 2020, Morning Glory decided to steeply reduce its pries so that more Guyanese could afford the very nutritious cereal, which is a complete meal replacement, even if it is consumed without milk. Indeed, the Company worked with its retailers and distributor ANSA McAL Trading Ltd. to reduce the price of the product on retail shelves from an average of $600 – $650 per 225g box to approximately $350 per 225g box. This represents a 46% decrease in retail prices. The IAST/Morning Glory task force recommended this change based on its direct observation of at-need and at-risk communities, encountered during the team’s involvement in Corporate Social Responsibility outreach into such communities. According to Narine, Morning Glory has already begun to see the impacts of this socially conscious decision. Due to the price reduction, Kaieteur News understands that the cereal is reaching more income brackets and there has been a 29% increase in retail sales, which although it cannot make up for the loss in income due to sales to the National School Feeding Programme, is evidence that the primary goal of the strategy; to have a finite social impact on the nutrition of Guyanese, is being successful.
PARTNERING WITH CGX & FRONTERA ENERGY

The IAST/Morning Glory task force observed first hand, the growing level of need in lower income communities in Guyana in relation to accessing good nutrition. As a result, the task force reached out to CGX Energy Inc. to seek ways in which the Oil and Gas Explorer could work with Morning Glory Inc. to enable households in at-risk communities as well as regional health centres, orphanages, shelters and retirement homes access to the full meal replacement nutrition that Morning Glory provides. This news agency understands that CGX Energy Inc. partnered with its Joint Venture Partner, Frontera Energy Corporation and Morning Glory Inc. to enable the donation of 30, 000
225g boxes of Morning Glory Cereal to families and institutions, at a cereal cost of $10, 538, 500. Indeed, these companies were able to partner with several local organizations and individuals to ensure that the donated cereal reached directly to at-risk organizations and individuals without any additional cost. Among others, staff of the Morning Glory Inc. and IAST were able to collaborate with Air Services Limited, religious organizations in Herstelling, the Agricola Development Association, the Hindus for Selfless Service, the Berbice Chamber of Commerce and Development Association, the Essequibo Chamber of Commerce and the Region Five Chamber of Industry and Commerce. Cereals were also donated to at-risk communities and organizations in Regions Two, Three, Four, Five, Six, and Eight. Narine said that Morning Glory will continue to seek additional partners to reach Guyanese in need at this difficult time.
TAKING CARE OF EMPLOYEES
COVID-19 travel and shipping impacts have also caused the Morning Glory Plant to halt production during the months of June and July, as such; essential packaging materials were not delivered in time due to these delays. This resulted in members of the production staff were laid off and some of this time was used for retooling and maintenance. This has had an impact on both the financial health and the emotional health of the company’s employees. One of the most important strategies of coping with COVID-19 stresses communities around the world are finding, is to engage with each other in conversations so that stresses and solutions can be discussed. On this note, the company has ensured that it is using social media to allow all employees and management to interact multiple times a week and is already beginning to appreciate the role camaraderie plays in alleviating stress. In addition, Morning Glory has ensured that it provided food hampers to all of its affected employees during this period. The company expects to resume production in August when the packaging materials have arrived. These are expected in late July, 2020.
In the meantime, here is what two staff members had to say about dealing with COVID-19 pandemic.

Tamika Richardson, Food Processing Technician, Queenstown, 20 years old: “Working during the period of COVID in the manufacturing sector has exposed me to a great experience most of which we were already practicing at Morning Glory Inc especially good hygiene and safety attire. I started working with the company in September 2019 and since then, I have been busy helping in the production of cereals. The job has been my first one so I tried my best to ensure that I adhere to all safety measures. I was very fortunate to be in the team to manufacture a large number of cereals mainly for donations- this made me feel good. However, in June, when our Director announced during a meeting that we will be closed for maintenance, it was heartbreaking. I was accustomed to waking up and go to work and helping to feed the nation. I accepted the decision but being home is very hard, the feelings of being laid off are the worst. I am however thankful that the company has provided food vouchers for staff to assist us and our families. I must end by saying this is the worst period I have experienced in my career life and the effects of COVID are saddening.”
Trevon Richard Balgobin, Food Processing Technician, Henrietta Village, 20 years old: My experience during this entire COVID period has taught me to never take things for granted. I have started to work with Morning Glory Inc in 2019 and I was exposed to the most amazing experiences that have groomed me into a better individual. Having completed my studies at the Guyana School of Agriculture, I was happy to attain a job that deals with food science… Being laid off for approximately two months, it’s been a challenging period for me and my family. I am however thankful that the Management at Morning Glory has assisted in helping us with food vouchers. As an employee, I understand that management had done all it can to keep the staff such as reducing the price for a box as well as other measures. However, the effects have still gotten to us and we are facing the harsh realities- I just want this to be over.”
To be continued…

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