…into new warehouses, blending facility

DEMERARA Distillers Limited (DDL) on Wednesday announced that it is on the verge of embarking on a US$50M investment programme over the next three years, which includes the construction of two warehouses and a blending facility to ramp up its juice production.
Chairman of DDL, Komal Samaroo, told the media during a tour the company’s Diamond operations. “This event coincides with a very important point in DDL’s development; we are about to embark on a major investment programme, which over the next three years will exceed $10B Guyana or USD$50M. Some of these projects have started already. We have seen the new warehouse, we have [a] new blending department, and we are building a new warehouse for our distribution company,” said the DDL chairman.

He said the beverage company is currently in the planning stages with regard to other projects the company has on stream. “Over the next three years, we will see a significant investment that is taking place in pursuance with [sic] DDL’s strategic goals…to increase its export earnings and diversify its income base.”
On Wednesday, Samaroo and a team of officials hosted Prime Minister Moses Nagamootoo, his wife Sita Nagamootoo and Minister of Business, Dominic Gaskin at its Diamond facility. He said the tour of the Topco juice plant, the rum warehouse, and the bottling plant represents “just a little glimpse of what we are doing.” “We hope that this is the beginning of several other visits to come, so they can see some of these projects after they are completed,” the DDL Chairman added.

Meanwhile, Prime Minister Moses Nagamootoo lauded DDL for its work and commitment to local content and value-added products over the years. He described the tour as very important, as it gave him an opportunity to observe first-hand some of the operations of the Diamond beverage facility. In particular, the prime minister expressed much appreciation for being able to tour the Topco factory which produces locally made box juices.

“We started in the juice factory and ended up in the liquor section and immediately opens up an idea and a message at the same time to those who are saying that the sugar industry is dead or will be dead, they should come and take a tour of DDL bond and production factories…there is abundant need for molasses and unending need for liquor (rum and vodka),” said Prime Minister Nagamootoo.

He told reporters that he sees no “sign of death of the sugar industry” that has over the years been plagued by dire financial straits. “Guyana will continue producing sugar once there is a need for molasses,” he assured.
Similarly, Minister Gaskin lauded DDL’s efforts to expand in spite of various challenges. He described the tour of the facilities as “interesting” and noted that DDL is one of the biggest value-added producing companies here and possibly the most successful. “…So it was good for us to get a walk through and a glimpse of their expansion plans and upgraded facilities; and it is something that our government repeats ad nauseam that we promote and encourage value-added production of Guyana’s indigenous materials, as well as agricultural products. We see it happening here, and it is enjoyable to watch,” stated Gaskin.

He congratulated DDL on its move to expand and gave government’s commitment to supporting the company wherever possible. Government’s support, he added, is also extended to other value-added industries. That aside, Prime Minister Nagamootoo met with two fruit farmers who supply DDL with their produce. The farmers who primarily supply cherries, complained that they need more money for their produce.
Hassan Ali, one of the farmers present on Wednesday, told the prime minister that when he factors in the cost for weedicide, labour and transportation, he seldom makes a profit. The farmer explained that since DDL’s market for the TOPCO juice was slashed, the company has been unable to purchase all of his cherries. DDL lost the bid to supply the locally made juices to nursery schools across the country, through the Government’s school feeding programme sometime in 2016. The programme allowed each child to receive one box of juice along with biscuits, as a mid-morning snack. The biscuits were provided by Banks DIH Limited.

DDL’s production for the Topco juice has been reduced to two days from an operation of six days. The company had in the past employed 65 persons but the number of persons employed was slashed to 32. The second farmer indicated that he has been supplying DDL with his produce for some six years, but said, “The price is not where I think it should be.” He explained that the labour cost is “very high” and noted that after taking labour and transportation into account, “I am just getting $500 a bucket.”
After listening to the farmers, the prime minister and Minister Gaskin encouraged the farmers to create their own markets and step outside of the conventional business. “I am talking this way because I am really interested in people doing large-scale cultivation,” said the prime minister, who noted “We understand, but this is a good sign that at least you have a market to start with.”

The prime minister had previously met with farmers from Canal Polder and other areas who complained that they were not getting markets for their fruits. “We see DDL is willing and ready to receive fruits from local Guyanese farmers …and these are the juices we would want our families or kids to use… that are produced from local fruits, both from the

perspective of produced in Guyana, consumed in Guyana and at the same time creating livelihood for farmers who produce fruits,” said Nagamootoo.
Additionally, DDL’s chairman called on the farmers to understand that the market is an open one with lots of imported juices to compete against. “The big countries do it on the large scale…it is very competitive,” said Samaroo.