…says 300,000 tonnes to be achieved in 2011
MINISTER of Agriculture Robert Persaud has insisted that the sugar workers’ welfare is paramount to the Government and any idle speculation of the Government’s jeopardising the workers’ welfare is just that – idle speculation. The Minister made the statement during last Thursday’s session of Parliament.

Further, he said that never under the PPP Government will the Guyana Agricultural and General Workers’ Union (GAWU) or any union representing sugar workers will be de-recognised.

“Mr. Speaker, our country’s economic prosperity hinges not only on the success of the sugar industry [but of other industries.]

“We all recognise the special place of the sugar industry to our national development. And I want to encourage all stakeholders…if we are going to be able to come out of the EU price cuts and deal with the impact of climate change and the other challenges facing the industry, it will require all stakeholders [to be fully committed and resolved],” he said.

Minister Persaud said there is a firm and genuine commitment on the part of the Government of Guyana to ensure that investments are made to guarantee the eventual viability and sustainability of the sugar industry.

He recalled that, back in 2000, when the discussions started on the removal of the sugar protocol and in the preferential prices and markets that Guyana got, many countries within the Caribbean region and within the African Caribbean and Pacific states took the easy decision to get out of sugar.

“In Guyana’s situation, there was a firm commitment that Guyana will stay in sugar, (and) not just stay in sugar but will ensure that we construct a modern and competitive sugar industry as is demanded in the current global trade and economic environment,” he said.

He noted that having taken that bold and required step in the interest of national development and in the interest of the welfare of the people of Guyana, the Government proceeded to make substantial investments.

Among those investments, he said, was the close to US$156 million Skeldon Modernisation Project, both with the new factory, the cogeneration and the expansion of the agricultural area at Skeldon. “Further to that, a number of other investments were made throughout other estates and to ensure that both factory and field operations were brought to a level to guarantee that competitiveness and that viability which is required in today’s environment,” he said.

“As we speak Mr. Speaker, US$12 million in a new packaging and processing plant at Enmore is about to be completed and that will allow us to package more than 40,000 tonnes of sugar per annum and allowing us the opportunity of tapping into the better prices [for packaged sugar] on the international market,” Minister Persaud said.

He pointed out that since 2005, after the great floods, the ability of the Guyana Sugar Corporation (GuySuCo) to substantially increase production was hampered and since then, the Government took a number of bold steps aimed at addressing higher production.

“Some of those included the termination of the much controversial Booker Tate management contract. Also, there was the reorganisation of the management and further to that, there were efforts to have in place a viable and relevant plan to guarantee the viability of the sugar industry,” he said, adding that the plan has already seen some results in terms of cutting wastage, costs and enhancing production and productivity.

He said that in addition to some of the achievements in the turnaround plan, the area under cultivation of canes has grown substantially.

“And for the first time this year,  Mr. Speaker, we will see Guysuco having more canes in the field and not being able to take those canes to the factory due to weather and industrial relations issues,” he said, adding that because of this, close to 40,000 tonnes of cane will have to be taken into the new year.

Another major challenge which has hampered the sugar industry has been the EU price cuts and Minister Persaud noted that, for the first time, Guyana this year both saw and felt the full impact of the 36 percent cut in the price of sugar.

“That alone, Mr. Speaker, will see GuySuCo losing close to $9 billion in revenue this year…notwithstanding that, we are very confident and we look forward to next year as being a landmark year in terms of the industry being robust, strong and on firm footing to withstand the effects of the price cuts and the other challenges,” he said.

According to the Minister, the indications are that next year, GuySuCo will be able to move production to 300,000 tonnes or very close to it “based on the investments and on the turnaround plan that we have in place.”

The Minister said that there are efforts being made to question the Government’s commitment to the sugar sector. He said the recent commitment that President Bharrat Jagdeo made to the sugar workers of a five percent one-off payment will be financed from the additional $2 billion that the Government is making available to the industry.

“This is just the initial support that the Government intends to provide. Very soon there will be further support for the industry so that we can insist and ensure that the management and other stakeholders are able to take the industry to where Guyana requires it to be,” Minister Persaud declared.