CURRENTLY with the prevailing kind weather, sugar production on all locations

is encouraging and even more notable is that the sugar industry’s Flagship Skeldon Sugar Factory is now producing at unprecedented levels after having initial teething problems during which time the doomdayers had a field day attacking the government with full firepower and even describing the factory as a “white elephant.”
According to statistics revealed by Agriculture Minister, Dr Leslie Ramsammy, the Skeldon sugar factory is likely to surpass both its year and crop targets as recently it produced 2,500 tonnes of sugar in a week for the first time and up to last Friday total production for the current crop had exceeded 13,000 tonnes. Its target is 27,000 tonnes and according to Dr Ramsammy if the factory averages a production of 2,000 tonnes until the end of the crop it means it would produce a minimum of 18,000 tonnes more which will means it would exceed its target.
This will certainly help the cause of the Guyana Sugar Corporation which in recent years has been facing a difficult financial situation as a result of a combination of factors including frequent strikes, bad weather and drastic cuts in sugar prices with the end of preferential prices.
However, increased production will not only benefit the corporation but will also result in greater income incentive bonuses for the workers, as well as the national economy. As regards the latter Finance Minister, Dr Ashni Singh recently indicated that Guyana’s overall economic growth may have to be adjusted slightly downwards because of anticipated lower production. However, with the current production levels being witnessed it may not be necessary to make that downward adjustment.
GUYSUCO could also capitalise on the international market because of an anticipated increased global demand and increased prices.
Sugar prices will find support at buyer-friendly current prices of around 19 US cents a pound, while rising demand in several Asian consumers could help offset the effect of a widening global surplus, industry sources said on Thursday.
Benchmark New York raw sugar futures have rebounded around 5 percent after falling to a near two-year low of 18.81 cents earlier this month on expectations supply will exceed demand by 5.86 million tonnes in the next 2012/13 season which starts on October 1.
“At the current levels, there’s support such as demand, and there’s import buying at that 19 US cents a pound. Speculators are also involved in adding some support to the market as well,” Adam Tomlinson, director, food and agribusiness research at Rabobank, told Reuters on the sidelines of a sugar conference.
“The region is short of sugar. So there’s need for someone from outside the region, outside of East Asia to supply sugar here. I don’t think China will be exporting any sugar. China will continue to import sugar for the medium to longer term.” China, the world’s second-largest consumer after India, is forecast to consume 14 million tonnes of sugar in the 2012/13 season, up 7.6 percent from the current season, according to the China Sugar Association.
Demand will rise to 14.5 million tonnes in 2013/14 and 15 million tonnes in the following season, it said. (Source: Business Recorder).
Another encouraging and positive development within the sugar industry is the operations of the Enmore Packaging Plant, which one media house attacked on a daily basis and creating the erroneous impression that it was another wasted investment.
However, last Friday during a visit to the plant, Dr Ramsammy cleared the air on the issue when he explained:
“Like all new plants, it has had its teething problems; but as of right now, the Enmore packaging plant is working to expectations,” he said.
Explaining that the Enmore packaging plant is designed to produce approximately 40,000 tonnes of packaged sugar annually, he said at the moment it is working with sugar left back after bulk sugar quotas have been met.
Dr. Ramsammy said the plant began operating only in the second crop of 2011, and produced approximately 3,000 tonnes for that crop. Moreover, the plant has, to date, produced approximately 10,000 tonnes of packaged sugar.
He noted that GuySuCo’s main contractual obligation is production of bulk sugar, and only after those obligations have been fulfilled would the excess be sent for packaging.
The minister said a separate contractual arrangement exists for packaged sugar, which is used in Guyana and in CARICOM and extra-regional countries.