Guyana sugar 2nd on int'l quality list
By Mark Ramotar
Guyana Chronicle
October 8, 2003
EXECUTIVE Director of the Sugar Association of the Caribbean, Dr. Ian McDonald, is of the view that the Guyana sugar industry is doing better than other sugar industries in the Caribbean.
"I think the Guyana sugar industry has made great strides and I think its plans for the future which are well in hand for a new factory at Skeldon, for modernization in general throughout the industry and for expanded production to meet the future needs especially in the Caribbean market. I think the sugar industry in Guyana is doing extremely well," Dr. McDonald told reporters yesterday.
He said two other areas where the Guyana Sugar Corporation (GUYSUCO) has done very well is adding value to its product with the Demerara Gold Brand of rum, which it launched earlier this year and which is already making an impact.
The second thing is improving sugar quality. "In the modern sugar world, improving the quality of your sugar and getting a high quality of sugar is extremely important and I remember, I think some years ago, Guyana's sugar was almost last on the list so far as the refiners abroad were concerned; it's now second on the list and I know that GUYSUCO will be aiming to become first on the list because it puts great emphasis on improving the quality of the sugar and that is going to be increasingly important in the world of sugar in the future," Dr. McDonald commented.
He also noted that the market for Guyana's sugar at the moment is basically in Europe. He, however, pointed out that the CARICOM market for sugar is over 300,000 tonnes now (in addition to Haiti's approximately 170,000 tonnes), which is "a very considerable market".
Dr. McDonald feels that one of the ideas GUYSUCO has at the moment, and one that is "certainly for the future," is getting into sugar refining.
"What we desperately need in the Caribbean right now is sugar refining capacity. At the moment, the market for refined sugar in the Caribbean is about 170,000 tonnes whereas the Caribbean only has about 50,000 tonne refining capacity and that's in Trinidad," he said.
Just a few days ago, Mr. Michael Boast, the relatively new Chief Executive Officer of GUYSUCO, was quoted as giving the assurances that "Guyana's sugar industry will survive the challenges of removed preferential prices and traditional markets, when a modern US$70M factory and a planned sugar refinery come into being.
"The corporation's Strategic Plan encompasses the new Berbice Factory capable of producing 110,000 tonnes of sugar per year, at the desirable production price of between US$7 to US$9 per pound; co-generation using bagasse to power both the plants and the national grid; the production of organic and value-added sugar; and the construction of a refinery and rum distillery," Boast was quoted as saying.
President of the Guyana Agricultural and General Workers Union (GAWU), Mr. Komal Chand, had earlier indicated at the opening session of the fifth regional sugar meeting in the English-speaking Caribbean, which is being held at GAWU's Head Office in Kingston, Georgetown, that "in the Caribbean family of sugar there are some frightening and formidable challenges."
Chand pointed out that in Trinidad the Brechin Castle factory was recently immobilized - 9,000 jobs were lost. Also in the twin-island republic, CARONI's debts to creditors and commercial banks are reportedly at a crippling 3.2 billion TT dollars.
In Barbados, two of the biggest traditional plantations are pulling out of the sugar sector. He said the owner of Lears and Kendall Estate claims losses of some US$1M to be the reason. He plans to raise pigs, horses, cows and poultry on the land.
In Jamaica, sugar production plunged to its lowest last year - the worst in 50 years. These low rates of production are attributed to low prices for Jamaican farmers' canes as well as recent natural disasters.
Also making remarks during yesterday's session of the three-day meeting was Foreign Trade and International Cooperation Minister, Mr. Clement Rohee, who spoke on the CARICOM Single Market and Economy (CSME).