…over 37,000 tonnes exported in first half of the year

THE Guyana Sugar Corporation has exported 37,836.7 tonnes of sugar in the first half of the year.
This was according to information from the Ministry of Finance’s 2019 mid-year report, which was issued a week ago. According to the report, 32,263 tonnes were sold to the European Union (EU) market at a higher price than budgeted, resulting in an increase of $1.3 billion in export sales. At the end of June 2019, GuySuCo had a cash surplus of $834 million, reflecting an improved performance, when compared to a deficit of $3.8 billion in the same period in 2018.

Total receipts were $9.3 billion, of which $3.9 billion was received from the National Industrial and Commercial Investments Limited/Special Purpose Unit to fund GuySuCo’s operations and capital projects.

GuySuCo’s expenditure was $8.1 billion in the period under review.
It was $2.7 billion lower than the corresponding period in 2018.
The corporation’s capital expenditure was $334 million, 90.3 per cent lower than the budgeted amount of $3.4 billion, primarily due to delays in funding for capital works.
Despite the corporation’s performance at the end of June, the sugar company projected a deficit of $920 million at the end of 2019.

Although there are grim projections, GuySuCo continued to focus on cost reduction measures and improved efficiencies in order to position the company to compete in and take advantage of lucrative markets.

In this regard, GuySuCo had received tractors and other equipment that will increase cane yield and lower the cost of production of sugarcane.
According to the report, this will provide the base for a productive and profitable industry that will include, among other projects, cogenerated electricity from surplus bagasse, from the Albion factor, in the first instance.
The refurbishment and modernisation of this factory is expected to lead to the commercial production of plantation white sugar in 2022.

PRODUCTION
GuySuCo fell short of its production target for the first crop by one per cent, with output reaching 33,531 metric tonnes of sugar.
There were delays in the start of production that were due to the late delivery of materials for critical repairs to boilers in all factories, as well as extended equipment maintenance at the Uitvlugt factory.
Thus, the commencement of cane harvesting was pushed to late February. However, once harvesting began, industry yields were higher than the same period last year, by 1.4 per cent, with considerable gains being made at Uitvlugt.
There were also noticeable improvements in the recovery of sugar at both the Uitvlugt and Blairmont estates.
The corporation estimates that production for the second crop will be 73,516 metric tonnes, resulting in the growth rate of 2.3 per cent in 2019, down from the 15.6 per cent forecasted at the time of the budget,

The first round of cane assessment for the 2019 second crop was completed; the canes are relatively well grown and continue to develop in favourable conditions. However, it is noted that delays in the procurement of inputs, including fertilisers and spare parts, could affect production for the remainder of 2019, as well as 2020.