-Persaud

Agriculture Minister Robert Persaud says the sugar industry is bouncing back from a difficult period and will diversify this year to the production of packaged sugar on a wide scale to boost revenue. He admitted, however, that adequate cane supply remains an issue.

Persaud, who is also currently performing the duties of Prime Minister, declared that the sugar industry here is not likely to return to a state of profitability for “about three years or more” because several goals are still be to met. He said the turnaround plan for the industry is one of the initiatives while other factors include management issues.

Persaud toured the construction site of the new Enmore sugar packaging facility yesterday following concerns about a recent delay in the project. He noted there is need for concern about timelines because the facility is expected to be completed by September, and emphasized that when it is operational the industry is likely to earn significantly more.

By diversifying to packaged sugar, Persaud said, the sugar industry will increase revenue by some 50 per cent. He stressed that government has invested $2.4 billion, which also includes assistance from the European Union, to the new packaging plant because of the intended impact on the industry. “We cannot supply enough packaged sugar,” he said pointing out that there is considerable interest in it.

Initially, the Enmore packaging plant is expected to package around 40,000 tonnes of sugar, but it has a capacity to process 80,000 tonnes. The plant will heavily depend on the production targets set in the industry and also on the cultivation of cane. When questioned about the fact that the Skeldon factory is not operating at full capacity, Persaud said an adequate cane supply is expected in 2011. He said GuySuCo has committed to 2011 and that “things should be in place by then”.

He mentioned that the industry failed to reach its production target last year due to “a number of factors” and was hoping for 280,000 tonnes this year. He admitted that many things have to be done in order for the industry to bounce back to a strong production level, adding it intends to strive for greater efficiency. He said too it is important that the components of the turnaround plan come on stream at the right time.

According to Persaud, GuySuCo is “working” and the corporation was able to cut costs last year in excess of $2.5 billion. However, he cautioned that “these are very early days in the turning around” and persons looking in need to understand this.

Chairman of the GuySuCo Board Dr Nanda Gopaul told reporters that the operations at Enmore are crucial to the turnaround plan for the industry. He also spoke of the increased revenue which is projected from the new plant saying that GuySuCo has seen a heightened interest in packaged sugar for some time now. He said interest has grown in North America and other Caricom states, particularly Trinidad and Tobago.

The Enmore estate has been identified in the industry’s turnaround plan as a key part of its re-organization strategy and it is expected to be transformed into an important hub.