A MARKET for refined white sugar exists in CARICOM for a total of 200,000 metric tonnes and Guyana is in a position to fill the void.This is among several proposals which have been put to the authorities by the Guyana Agricultural and General Workers Union (GAWU) in a list of alternatives, which that body is proposing for the longevity of the country’s sugar industry. At the same time, the union is opposed to the closure of sugar estates in East Demerara as well as the Rose Hall estate in the absence of a feasibility study.
In a list of product-improvement proposals as well as diversification initiatives, GAWU said that with improved production levels reaching 331,000 tonnes in 2014, GAWU noted that the Guyana Sugar Corporation ( GuySuCo) would be able to satisfy the CARICOM market for which it would receive in excess of US30 c/lb. “Our research informed us that an 180,000 tonnes sugar refinery at Skeldon was found to have an Internal Rate of Return of 28.8 per cent, when a price of US23 c/lb was expected”, GAWU noted .
According to GAWU, “higher prices, in contemporary times, only serves to add to the project’s feasibility.” The union said the proposition holds basis through recent indication, through press reports, by an Indian investor who plans to operate the Skeldon factory with plans to establish a refinery, among other plans. GAWU said the proposal by the Indian firm is an indication that significant sums can be earned in the venture.
As regards brown sugar, GAWU is proposing that the management of the industry maximize current production. According to the union, GuySuCo is capable of packaging 50,000 tonnes of sugar per annum from its Blairmont and Enmore packaging plants. It noted that the prices received for this type of sugar is approximately US33 c/lb19 and represents the corporation’s highest return.
While supporting the maximization and further expansion along profitability lines, GAWU noted that opportunities for new product brands are numerous. It noted that a critical aspect to this venture is the “need for a robust product development and a marketing programme with clear vision and focus.” The union pointed to North American and European markets as hunting grounds which should be pursued in that regard.
Meanwhile, GAWU said that it remains “strongly opposed” to the closure of any sugar estate , especially in the absence of a considered study to address the ramifications of such a decision. The union said that it is often reminded of the closure of an estate without planning and adequate notice to cane farmers and the consequent serious circumstances the move brings to the employees, private farmers and the communities.
GAWU also stated its position as regards the proposed sale of the Skeldon estate. According to GAWU, while it is aware that there are shortcomings at Skeldon, over the years GuySuCo has been steadily seeking to correct the defects and it noted that it has seen improvements in the factory’s performance.
“We believe Skeldon holds great potential and can make a big impact in safeguarding the industry as a whole. We reiterate and urge all the relevant authorities to positively consider our proposals in this respect”, GAWU said. Last month, this publication reported that the outlook for Guyana’s sugar industry continues to look grim, with GuySuCo officials declaring that funds injected into the sugar industry at this time will be funds “wasted.”
With a debt of $77.3B and consecutive losses, GuySuCo officials advised that the industry is one not worth investing in unless plans for the reorganisation, restructuring and diversification of the industry are present.