The recent unseasonal rainfall has delivered a blow to the local sugar industry by delaying the start of the sugar crop which should have begun about a week ago. If the current weather pattern holds then the industry could come under severe pressure to achieve its target which is crucial, bearing in mind that the first crop of 2009 fell short of its target.
Also, the industry is under financial stress with the loss of preferential markets and cuts in sugar prices by the European Union-its largest market. In addition, the current global financial crisis will also have adverse effects on an industry which is important to the national economy.
Referring to the effects of the global economic crisis, Agriculture Minister Robert Persaud noted that government has been able to resist and reduce the impact on citizens and the national economy through various factors.
“…but that the international environment is also complicated by changes that have taken place and they are also coming at a time when, the sugar industry has felt the full impact of some of those changes,” the minister correctly observed.
Reminding that the European Union (EU) sugar protocol comes to an end in September, he reiterated that, starting next year, the industry will be earning about $9 billion less.
“We have also seen that the way in which some of those entities have treated the sugar industry and Guyana, has not been fair and just,” Persaud said.
Emphasising that the international and external environment is not a favourable one, he said: “We need to recognise that today our sugar industry and country, are existing at a time when we can no longer depend on others or think that people will be grateful and generous to us, so that our country can gather resources or that the sector can be in a position to grow, advance and expand.
So, the picture is clear-the current road is a difficult one and therefore has to be traversed carefully and most importantly all stakeholders have to act responsibly and reasonably so that the gains in the industry could be consolidated and the difficulties addressed to ensure the industry remains viable and competitive with the other sugar producing countries of the world.
In this regard, utmost attention has to be paid to industrial relations which are pivotal to stability and consistency in production. In the past this has been a bugbear which severely hampered production. In this situation both management and the trade unions/workers have to exhibit a deep spirit of compromise and a great sense of responsibility. However, this should not be an excuse for workers rights and benefits to be trampled upon by unscrupulous and unreasonable managers because such an attitude would only ignite an unwanted explosive situation.
Nevertheless, the CEO of GUYSUCO, Mr. Errol Hanoman has sounded a note of optimism pointing that the machinery and equipment are in good order ready to overcome the bad weather.
This is good news because one of the problems in the past which plagued the industry has been increased down time at factories.
Mr. Hanoman, also made a very important disclosure in relation to reducing cultivation time by nearly half
“In addition, we are going to bring on board contractors who will come in with their operators to work with us, and our intention is to do in 50 to 60 days, what, prior to 2005, we used to do in 110 days, he indicated.