2010 developments forced changes, created new sugar industry

– Minister Persaud
AGRICULTURE Minister Robert Persaud, said that in light of current industry trends, Guyana Sugar Corporation (GuySuCo) will have to move swiftly into mechanisation.
He told a media briefing Tuesday, that task is expected to be accomplished by 2016, once the resources are available.
“We are moving to full semi-mechanisation by 2016,” he said, but cautioned that the process will be a gradual one, from the present labour intensive enterprise to one where each estate boasts semi-mechanisation.
Persaud indicated that changes can come soon and, in 2011, GuySuCo will be different.
He said the outlook of the industry has been shaken, particularly because of the 36 per cent price cut implemented by the European Union (EU), in keeping with rulings by the World Trade Organisation (WTO), which is costing Guyana $9 billion every year.
Persaud said, that, and other challenges have made the creation of an improved industry a necessity.
Another major challenge is the $7 billion debt to suppliers and GuySuCo’s costs have increased, significantly, from 1993 to now. For example, in 1993 the labour cost for one tonne of sugar was $24,000 but it is now $71,364, he explained.
Persaud said the $2 billion approved by the National Assembly last week, and the income from exports is to address some of the company’s debts.
“In 2011, further injections will have to be made,” he said, reaffirming the Administration’s commitment to the sugar industry.
Persaud said one more factor contributing to GuySuCo’s unfavourable position, is the strike actions that set the industry back and caused significant losses.   

TURNOUT
He pointed out that the turnout of workers over the year ranged between 48 and 52 per cent, with as little as a one per cent on some days.                                     
Persaud said the most recent records put turnout at only eight per cent on Monday, December 27, and GuySuCo has approximately 16,000 employees on its payroll.
He maintained, though, that workers are very important to the industry, even with the movement towards mechanisation.
“Everyone has to be on board…everyone has to make that commitment to have the industry turnaround,” Persaud reiterated.                                   
He said continuous efforts are being made to ensure improvements in the working conditions of employees and cited the State’s intervention with a $720M payout to workers last week.
Persaud mentioned the five per cent increase, for all sugar workers, retroactive to January 2010 and the promise by President Bharrat Jagdeo that it could be permanent in 2011, in addition to any other increases next year, once certain production targets are met.
Currently, production stands just over 220,000 tonnes, much less than the original target and GuySuCo’s 2010 production is forecast to be the lowest in a decade.
Sugar accounts for nearly 20 per cent of Guyana’s Gross Domestic Product (GDP) and 40 per cent of agricultural output.
“What has happened this year and prior to it certainly will shape the outlook of the industry…these developments have forced changes and advanced the creation and the establishment

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