Uitvlugt Estate to resume operations next week

Jul 07, 2022 News

---

– availability of workers could prove difficult

 

Kaieteur News – After being out of operations for over three months due to mechanical issues to one of its critical parts, the Uitvlugt Sugar Factory is expected to be back in full operation in another week’s time. However, industry insiders said that the estate could struggle to find fields and factory workers.

While the factory was down, a number of the workers were urged to seek alternative jobs. Some were also offered part-time jobs outside of the industry. “It might be difficult to get some of those folks to come back to the industry,” a source close to GuySuCo told this newspaper. Asked about this Minister of Agriculture Zulfikar Mustapha said quote the opposite, assuring: “there is enough workforce to get the operation going again. There are indeed enough workers who will resume work when the facility is opened.” He added that with the factory in the process of opening, it would certainly boost sugar production in the country. When this factory was closed only two estates, Blairmont and Albion were in operation. Not answering directly how much the absence of the Uitvlugt factory not being in operation would have contributed to the shortfall of sugar production in the country, the minister related that now with it slated to be opened, “we will have more production and sugar be produced.”

Meanwhile, Mustapha also informed this publication yesterday that the mechanical problem at the factory has now been fixed. The Uitvlugt Sugar Estate has been closed since March this year due to mechanical issues of its #1Mill turbine gearbox. The gearbox which had to be replaced with a new one was being sourced from Texas.

The new part which arrived this week is now being installed. “They (GUYSUCO) did some trials on it and they say it’s running good. Now they are looking to see whether, they will start the crop shortly. This morning I spoke to the acting CEO and he told me that they will be meeting with the workers shortly and they are looking at the weather to start to burn cane so that the crop can start there at Uitvlugt.”

The Guyana Sugar Corporation (GUYSUCO) in a Facebook post on Monday had stated that the factory’s team successfully completed machinery and steam trials with the installation of the new gearbox, which is a critical part of the factory’s operation. “Management will consult with workers in preparation for burning the fields this week, after which grinding is expected to begin if favourable weather permits,” the post stated.

Meanwhile CEO of GUYSUCO, Sasenarine Singh when contacted for an input with regard to the specifics, declined to comment saying he was unwell at the time and was in fact on sick leave. GUYSUCO has in recent years been plagued with declining production while cost remains high leading to bailouts from the government.

The Corporation last year produced 30,865MT less of sugar when compared with 2020. Based on a report, GuySuCo’s pre-audited production stood at 58,025MT of sugar in 2021 compared to 88,890MT in 2020. Despite the significant shortfall, the Corporation had said it met all the needs of the local market for 2021. It was explained that the shortfall was a result of the loss of some 35 percent of the standing cane during the 2nd Crop of 2021 due to the flood. “At Albion, where 50 percent of the production was programmed to be made, the mortality rate for the standing canes planned to be harvested for the 1st Crop of 2022 is estimated at 80 percent due to the floods. On the Berbice Estates where more than 77 percent of the production is made, the rainfalls in 2021 were 72 percent more than the previous year,” GuySuCo detailed, while noting that it drained some 4.5 million tonnes of water off the land daily during the 65-day flood.

The ailing sugar corporation has, over the years seen a continuous decline in performance in terms of production but has seen billions of dollars from the nation’s coffers being plugged annually into the industry.  In its Mid-Year report last year, the Government had acknowledged that the sugar industry continues to decline. In the financial report, the Ministry of Finance said that at the end of the first half of 2021, GuySuCo produced 29,650 tonnes of sugar. “This performance reflects the record high levels of rainfall, which resulted in waterlogged soils, particularly at the Albion Estate, and strike action that resulted in over 5,600 man-days being lost,” the Mid-Year Report indicated. As such, it was emphasised that the sugar industry declined by 22.4 percent when compared to the same period in 2020.

Some of the reasons indicated were a 30 percent mortality of mature cane at Albion estate, 10 percent at Uitvlugt and five percent at Blairmont due to the floods. Another 15,000 tonnes of sugar in the second crop were also expected to be lost, based on the Report. It should be noted that for last year alone, GuySuCo received over $6 billion from the national treasury for its operations and this year it received a further $6B in the budget.

 

---

---