Minister of Agriculture, Noel Holder on Monday said that the future of the sugar industry here lies in a smaller sector with reduced losses and cash deficits but coupled with a separate and profitable diversified enterprise, which would ensure a viable future.

Holder made the comments as he unveiled Government’s blueprint for a restructured sugar industry at the commencement of Parliament earlier today.

He said the plan, dubbed Whitepaper, will focus on the poorly-performing estates and have them shift from sugar to diversification.

“The proposed courses of action are to amalgamate [merge] Wales Estate with Uitvlugt Estate and reassign its cane to the Uitvlugt factory, since the estate is operating at 50 percent capacity. Sixty percent of its drainage and irrigation infrastructure is in a dilapidated condition. The corporation furthermore seeks to divest itself of the Skeldon Estate. The estates of Albion and Rose Hall are to be amalgamated and the factory at Rose Hall is to be closed.”

Holder said GuySuCo would then consist of three estates and three sugar factories. The estates would be Blairmont in the West Bank Berbice, Albion-Rose Hall in East Berbice and the Uitvlugt-Wales estate in West Demerara. The three estates will be complete with factories and will have cane supplied from all five locations.

“The process will result in improving the relationship with some cane cutters, estate staff and about 1,710 private cane farmers. These adjustments mean that GUYSUCO would be scaled-down into a more efficient entity that focuses on producing sugar to satisfy the domestic and foreign markets that provide preferential access to our sugar.  This entails taking advantage of the opportunity to merge better performing lands to operate factories more efficiently,” Holder said.

He said GuySuCo’s plans, apart from restructuring the estates and factories, to transfer to the state charges for the drainage and irrigation and health services that it provides to the communities, and around the estates.

GuySuCo also proposes to surrender land for lease to employees for them to engage in agricultural production.

“The resources that exist under the “Green economy” and “Regional Food Self-Sufficiency” drive would support their efforts,” Holder said.

The Government proposes that sugar production should be contracted to approximately 147,000 tonnes of sugar annually produced from Albion, Blairmont and Uitvlugt Estates, to satisfy the demand in the local markets (25,000 tonnes pa), CARICOM and regional (50,000 – 60,000 tonnes pa) USA (12,500 tonnes pa) and the World Market (50,000) tonnes.  Focus would be on producing for direct consumption, value-added sugars and providing electricity to the national grid (co-generation).

Additionally, it is proposed that Skeldon Estate should be divested.

“Significant investment has been made in the new Skeldon Factory which, to date, has experienced numerous technical problems.  It has failed to achieve its potential thereby failing to generate returns on the investment.  The Corporation does not have the resources required to correct the technical problems.  It owes in excess of G$29 billion in loans due for the Skeldon Sugar Modernisation Project.”