Dear Editor,
THE Guyana Manufacturing and Services Association (GMSA) wishes to state clearly that it fully supports local and regional products, and seeks to operate in an environment that promotes same. Without any contradiction, it also recognises the need to provide consumers with products of required quality at affordable cost, and this further ensures the continued viability of its manufacturing members as going business concerns.

Many manufacturers use sugar as a main ingredient in various products. Some of these formulations and processes are very sensitive to the quality of the sugar. For example, the colour of the sugar is very critical to icing sugar and clear beverages. If the sugar is not of required whiteness, the product appears discoloured and is unacceptable to consumers. Another critical quality is the level of insoluble solids, colloquially termed ‘grumbs’, when the sugar is dissolved. Not only is this unacceptable to consumers when noted in products, it also causes other quality defects, including graining in sweets, and loss of the structure in ice-cream that could lead to the ice-cream not being ‘fluffy’ or adequately aerated. It can further cause damage to expensive processing equipment due to its abrasiveness.

Conductivity Ash in sugar can cause foaming and loss of in sensory quality in beverages, and ‘bubbles’ with sharp edges in hard candy that can cause cuts in the mouth when eaten. From a safety perspective, Sulphur Dioxide at certain levels is known to cause hypersensitivity or allergenic reactions in some persons, and must be declared as an allergen in many countries when the level reaches 10ppm or above.

It is for these reasons that food and beverage manufacturers in the developed countries almost exclusively utilise refined sugar in the manufacture of many sugar or sugar-containing products, including beverages, confectionery, ice-cream, icing sugar and some preserves, among other products. Indeed, some franchise owners do not allow franchisees to use sugar that does not meet the refined sugar requirements. Even when the sugar meets ‘refined’ requirements, the franchise holder must first approve the supplier before such sugar can be purchased by the franchisee. This is done to ensure the franchised product meets the quality and consistency requirements set by the franchise holder.
‘Plantation white’ sugar and ‘refined’ sugar are NOT the same. The processes to produce them are substantially different, and the end-products are similarly different. Plantation white processing, as practised in most factories, involves bleaching of the sugar by bubbling Sulphur dioxide through the sugar solution in one or more stages in order to bleach the colour out of the sugar. It is this Sulphur dioxide that leaves residues of up to 70ppm in the plantation white sugar. Insoluble Solids is another quality criteria in sugars important to manufacturers. While some insoluble solids can be filtered out, it is accepted that some could/will remain, and so maximum levels of insoluble solids are set for plantation white sugar. Another quality parameter, Conductivity Ash, is not removed in the plantation white process. Refined sugar, on the other hand, is re-dissolved and purified. The sugar passes though processes that extract the colour, causing compounds rather than bubble Sulphur dioxide to bleach the colour. Insoluble Solids and Conductivity Ash are also removed to result in a properly ‘refined’ sugar that can be used to produce quality foods or beverages.

If refined sugar is manufactured in the region at affordable cost, the regional manufacturers will have no problem in purchasing same. It is noted that the expertise to set up refineries in the region is not lacking, as the parent company of one regional producer, the Belize Sugar Industries, ‘American Sugar Refineries’, is one of the largest refiners of sugar worldwide. It manufactures refined sugar for many food and beverage manufacturers in the developed countries, including in North America and Europe, and also sells to developing countries, including Guyana, through one of its subsidiaries, Tate and Lyle Corporation. The Association notes that Tate and Lyle Corporation had previous (recent) association with GuySuCo.

If manufacturers were to use plantation white instead of refined sugar, for reasons of quality, products will no longer be as acceptable to consumers and will not be able to compete on the basis of quality with products coming into the region. Further, manufacturers will face difficulty to export products out of the region to compete in extra-regional markets – exports that bring in valuable foreign exchange. Franchise owners, including CocaCola and PepsiCola, will not permit franchisees to use sugar not approved by them. In any case, if sugar of the required quality is not available in the region, manufacturers will have to purchase extra-regionally if they want to continue to produce quality products.

To apply CET on a product that is not manufactured in the region will increase cost and make regional manufacturers unable to compete with extra-regional products coming into the region. It will also mitigate against our competitiveness in extra-regional markets. Most regional manufacturers operate under small margins, and loss of market and increased cost will jeopardise the viability of these manufacturers. Many of these manufacturers that made many sacrifices and fought hard and long to survive will be forced to close their manufacturing lines. This will cause loss of hundreds of jobs directly, and thousands indirectly, through downstream trade. At the same time, it will not benefit the sugar producers. It is also to be noted that under existing CARIFORUM agreements, sugar imported into countries like the Dominican Republic will not be subject to CET on Refined Sugar as imposed by CARICOM, but can export sugar products to the region under concessionary terms. They will, therefore, have a significant additional advantage over regional manufacturers other than those that they already have.

The Guyana Manufacturing and Services Association lauds and supports the efforts of the regional sugar industry as it seeks to improve its efficiency and make the sugar industry viable. It commits itself to using regionally manufactured products that meet requirements of quality and cost. At the same time, it refuses to offer products of quality lesser than it is accustomed to offer to its valued consumers, and of lesser quality than is offered in extra-regional markets. Indeed, it cannot be competitive and continue to do business if it were to do otherwise.

Clinton Williams,
President
Guyana Manufacturing and Services Association Ltd