-as part of new 2020-2025 business plan
-mulls sugar tourism, export of electrical energy

THE ailing sugar industry, managed by the Guyana Sugar Corporation (GuySuCo), is looking to “bounce back” by increasing its annual output and diversifying its core business beyond the cultivation and production of raw sugar.

In recent times, GuySuCo has failed to make positive strides because of high production costs and the loss of lucrative markets, but the corporation believes that it could “rise from the ashes” with its new “I believe in GuySuCo” initiative.

The initiative, as described by GuySuCo, is an internal stakeholder mobilisaton campaign and a new business plan, which will guide the company for the next five years.
The initiative is aimed at creating a revitalised sugar industry, with production surpassing 150,000 tonnes of sugar annually; competitive products; and a productive and highly-motivated team. Over the past four years the corporation has been working with a target of 147,000 tonnes of sugar annually.

It is expected that if given the required support and necessary financing, the corporation will return to a position of sustained growth and prosperity.
In a letter to President Granger on May 15, close to a month ago, Chairman of GuySuCo’s Board of Directors, John Dow, had said the sugar corporation was in a “dire financial crisis” with billions in debt, and insufficient finances to execute critical factory maintenance.

“Despite improvements in the productivity of cane, GuySuCo’s sugar production for the last two crops has fallen short of expectations and the current COVID-19 pandemic has exacerbated the problems experienced in meeting the first crop 2020 production targets…As result, the cash generated from operations cannot meet the ‘outgoings’ particularly when external funding has been difficult to obtain,” Dow said as he painted a vivid picture of the financial challenges facing the sugar industry.
The corporation through its new initiative hopes to change the gloomy image of the industry by modernising its agriculture and factory operations, as well as diversifying its core business beyond the cultivation and production of raw sugar.

Emphasis will be on increasing the production of direct consumption sugars and producing white sugars for industrial use. Other new business lines include the generation and export (locally) of electrical energy and service industries, such as ‘sugar’ tourism.

Therefore, as the corporation transitions, it is imperative that the employees and other internal and external stakeholders be integrated into this process, said GuySuCo.
Through the campaign, GuySuCo will mobilise employees and other stakeholders around the new strategic direction of the corporation in order for there to be “oneness of vision” and for a more synergistic approach, over the next five years.

This campaign builds on earlier campaigns, such as ‘Putting GuySuCo First” and the ‘One GuySuCo’ which were conducted from 2016 onwards.
Employees, as well as other internal stakeholders, have gone through a ‘harsh’ reorganisation process over the past three years, thus, the aim of this campaign, is essentially to mobilise the internal public – managers and general staff of the corporation around the new strategic focus – vision, mission, values and programmes, reignite the transition process, in addition to the ‘New GuySuCo’ concept. Also, very importantly, to secure commitments for the new strategic direction from individuals, departments and states.

Stakeholders to participate in the campaign include: members of GuySuCo’s Board of Directors, managers, general staff and union representatives.
The expected outcomes for the campaign are a mobilised workforce around the new strategic plan, greater ownership within the corporation for the new strategic programme, motivated employees contributing towards the goals and objectives of the corporation; and an analysis and greater understanding of what is working and what is not working during the transition process.

In referring to the current condition of the sugar corporation, President David Granger had said, “it is very unfortunate we are in this position. Throughout the tenure, we have been engaged in trying to resolve the issue of the industry.”

The incumbent A Partnership for National Unit and Alliance For Change (APNU+AFC) coalition had initiated the resuscitation of the sugar industry with the presentation of a “White Paper” to Parliament.

Minister of Agriculture, Noel Holder had unveiled Government’s White Paper on the Future of the Sugar Industry at the commencement of the 64th Sitting of the National Assembly. He had said the plan, dubbed ‘State Paper on the Future of the Sugar Industry’, will focus on the poorly-performing estates and have them shift from sugar to diversification.

To this end, government had retained three sugar estates and three sugar factories. Those estates are Blairmont on the West Bank Berbice, Albion-Rose Hall in East Berbice and the Uitvlugt-Wales estate in West Demerara.

Those estates produce approximately 147,000 tonnes of sugar annually, 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).

In executing its plan to resuscitate the industry, President Granger said government had to make “hard decisions,” which included the retrenching of workers. But, despite the scaling down of the industry and provision and future provision of government bailouts, the President said there is no guarantee that the corporation could produce sugar at world market prices and function economically.