The Guyana Sugar Corporation (GuySuCo) has set itself a three-year deadline to address the constraints affecting the performance of the once vibrant industry, Minister of Finance Dr. Ashni Singh stated during the 2013 national budget presentation. It is currently in the process of updating its ‘Turn Around Plan’ to a three-year (2013-2016) Strategic Plan.

According to the minister, this plan, which is projected to cost the company $3.1B in 2013 to advance the implementation of critical recapitalisation aspects, is currently being prepared, and will address challenges of returning the sugar industry to its production potential and profitability.
Delivering his presentation in the National Assembly, the finance minister explained that “the sugar industry has been beset by issues associated with managerial capacity, unpredictable weather and labour supply constraints, to name but a few. Consequently, annual production levels have been less than acceptable.”
He said that on the upside, the external outlook for sugar remains positive, given Guyana’s comparative advantage as a producer within CARICOM, the existence of a captive market protected by the Common External Tariff, and the continued market access with the recent extension of the EU Sugar Regime to 2020.
GuySuCo, with much support, has over the years sought to address constraints such as irregular weather patterns and industrial actions that have contributed to the sliding industry’s performance, Minister Singh explained. “Over the last few years, initiatives in field and factory operations have been undertaken to counter the labour shortages and the reduced opportunity days arising from changing rainfall patterns, mechanical harvesting has been accelerated and there are ongoing investments in drainage works and land conversion to mechanically friendly fields. Private cane farmers have been encouraged to take on a greater share in supply of canes to supplement GuySuCo’s production,” the minister stated.
Meanwhile, the issues at Skeldon factory, a key and critical facility for overall improvement of the industry’s performance, are being addressed holistically and several modifications and adjustments have been completed to deliver higher levels of output and efficiencies, he said.
As GuySuCo continues to grapple with the challenges of returning to its production potential and profitability, it has to recognise and confront its managerial, industrial, technical, marketing and financial realities, Minister Singh said, and it is with this in mind that the updated Strategic Plan is currently being prepared.
The minister clarified that “the plan will support the mechanisation and field conversion drive and focus particularly on critical areas.”  In line with this new, three- year deadline, the minister put forward that “a strong and committed management response is necessary to deliver the anticipated output from investments.” Industry customs and practices of the past must now give way to modern, innovative and creative tools and techniques to deal with managing a complex organisation in the process of change.
The minister also said that, “GuySuCo will have to re-engineer its management and human relations functions accordingly. Promoting a harmonious industrial relations climate is considered an absolute priority and will require accommodation on all sides. Management and union will need to put aside the attitudinal and non-productive confrontations in their negotiations. Industrial relations practices are expected to become more interactive and congenial.”
He said that whereas GuySuCo’s lands are capable of producing in excess of 400,000 tonnes of sugar, field interventions to address the weather and labour constraints can only be successful with the requisite agronomic inputs. He said that agricultural operations must capitalise on the relative advantages of each estate, ensuring daily field supervision and returning the fields to the former levels of productivity.
Minister Singh said that focus will therefore be needed in determining the right balance of mechanisation, field conversion, drainage and irrigation, transport infrastructure and plant breeding within the full spectrum of agricultural related interventions.
He said also that the factory improvement programme will aim at producing sugars to meet the growing market requirements for higher quality, both in bulk and direct consumption, with increased efficiencies at all seven factories.”
According to the minister, a specific element of the plan will be to have the new packaging plant at Enmore operating at full capacity.
In 2009, GuySuCo proposed and implemented its ‘Turn Around Plan’ which proposed the cutting of the company’s operational cost to ensure viability. The company has been in operation under this plan for the last two years.