Last year GUYSUCO produced 284, 474 tonnes of sugar, the first and second crops yielding 98,223 and 166, 251 tonnes respectively. According to Webb this is 10,000 tonnes more than what was produced in 2000.

Webb said that the weather during last year was conducive to land tilling and preparation of the fields for sugar cane cultivation. Tilling is essential for increasing production and productivity. He added that the weather contributed to the cracking up of the soil, which is helpful during tilling and preparation of the fields.

He stressed, however, that during this year the Corporation will strive to optimise the use of machinery to further increase production because it cannot only rely on the weather.

However, despite the increased production last year, the Corporation failed to make a profit. Webb attributed this situation to the depressed state of the Euro, which negatively impacted on GUYSUCO’s revenues. Guyana exports most of its sugar to the preferential European market.

In its efforts to return to profitability the Corporation is working towards a target of 300,000 tonnes of sugar for this year, and it will intensify its programme to reduce the cost of production, Webb explained. He added that the Berbice expansion and modernisation programme is poised to take off this year.

He also said that during last year, the Corporation’s packaged sugar, which is produced according to specifications, has been well received. During this year, GUYSUCO plans to pursue wider markets in the Caribbean and elsewhere.

Chairman of the Board of Directors, Mr. Vic Oudit, in acknowledging the Corporation’s loss (the first in ten years), said there were several positives for the industry.

He pointed out that land preparation exceeded its target; the preferential European market has been extended to 2006; the international approval for expanding the Berbice estates without having to sacrifice the Demerara estates; the improved quality of sugar, which has resulted in more being sold on the Caribbean market.

The Chairman also indicated that GUYSUCO plans to sell more sugar to Brazil this year.

As part of its plan to further improve the quality of output, sugar driers will be installed, Oudit disclosed.

Sugar workers are also to benefit from an improved welfare programme under which, there will be a pension plan for all workers. Previously, only senior staff enjoyed this benefit.

Meanwhile, President Bharrat Jagdeo at a press conference on his return from Washington recently, made it clear that, as part of GUYSUCO’s modernisation programme, there is no requirement for employment reduction, closure of estates or privatisation of the industry.

The President said he was very disappointed that there has been some amount of distortion in the media about the restructuring of the sugar industry in Guyana.

He said the primary objective is to restructure the sector and to make it more “internationally competitive”.

The end result will be that Guyana will not lose some 16 per cent of its Gross Domestic Product (GDP) and will not suffer from a reduction in foreign currency earnings coming from the industry.

The initial budget for the modernisation programme stands at some US$100M, to be financed by several international multilateral funding agencies.

The President explained that while the focal point will be to improve operations in the Berbice estates, emphasis will also be placed on reducing maintenance costs and improving overall efficiency in Demerara.

He was responding to some misleading media reports, which have indicated that the sugar industry will be privatised this year and that some 8,000 workers will lose their jobs as part of the restructuring programme.

President Jagdeo said that the cost of production in the sugar industry has made Guyana’s sugar somewhat uncompetitive on the world market. The local production cost a few years ago was US19 cents per pound, while the price on the world market was about US12 cents per pound.

Over the past few years, the Corporation has embarked on a programme of reducing the cost of production by implementing measures to increase productivity, cutting out wasteful expenditure, and employing more scientific and advanced cultivation methods. These measures have resulted in reducing the cost of production to about US15 cents per pound.

It is expected that in another few years, the cost will be reduced to the desired target of about US11 to US12 cents per pound.

The President has maintained that the sugar industry will become competitive once again on the world market. (CHAMANLALL NAIPAUL)