Chief Executive Officer (CEO) of the Guyana Sugar Corporation (GuySuCo), Dr. Harold Davis Jr, says that the processing plant the company intends to use to produce plantation white sugar will be configured through the expansion and modification of the Albion sugar factory.
The sugar factory at Albion is one of those left operational after several were decommissioned by the coalition government. Dr. Davis emphasised that the intended works do not include the construction of a new facility.
He also said that GuySuCo has an estimate of the costs of the required works, but declined to share same as doing that can affect the tender process ongoing.
During an interview with Stabroek News yesterday, Dr. Davis said that several applications have already been received, but declined to speak to the identity of the firms which have applied.
GuySuCo had declared its intention to produce plantation white sugar in sufficient commercial quantities, along with Belize which it would be competing with, to be able to supply the region’s demand.
These steps are critical to efforts by regional sugar producers to move the Council for Trade and Economic Development (COTED) of the Caribbean Community (CARICOM) to erect a 40% Common External Tariff (CET) against refined sugar, which is sourced extra-regionally. The application for the CET was made by Belize.
GuySuCo, along with Belize Sugar Industries Limited (BSIL) and the Sugar Association of the Caribbean (SAC) commenced a Joint-Work Programme in June of this year aimed at protecting the existing local sugar market, and creating additional markets and opportunities.
These efforts have been met with widespread opposition from manufacturers across CARICOM, who say plantation white sugar is of a lower quality than refined sugar, is therefore a different product not qualifying for protection, and would degrade the quality of the food and beverages they produce.
The Guyana Manufacturing and Services Association (GMSA) has been steadfast in its opposition to the tariff in the present circumstances, and during the 49th COTED meeting in Guyana two weeks ago, Trinidad and Tobago Minister of Trade, Paula Gopee-Scoon, had said that central to the conversation was the maintenance of standards.
“Belize has to reconsider their process which is being used in the manufacturing of plantation white sugar. It is not the same process which is used in the manufacturing of refined sugar. There is no milling involved in the process that Belize does, and therefore we are honestly very firm on the matter of specifications and standards”, Gopee-Scoon said.
She also said that “…standards are important. We must keep our standards, if we are talking exports, if we want to be competitive, so that the whole discussion features really around standards and specifications. That is the main issue for Trinidad and Tobago.”
On the first day of the meeting, GuySuCo and GMSA released a joint statement which disclosed that they had agreed that that the 40% CET will not apply for the specific use by food and beverage manufacturers until at least 2022 when production of this item is expected to begin in Guyana.
The release also disclosed that GuySuCo “has already sent out a request for tenders for a processing plant to produce white sugar of the required quality and colour with a target of early 2022 for first production”. The plant is intended to produce white sugar of Codex ICUMSA 45 specifications to meet the requirements of the GMSA’s manufacturers of food and beverage products.
Dr. Davis clarified yesterday that the process is open to regional and international parties, as GuySuCo intends to employ the services of a qualified and experienced party. He says that the tender process is likely to remain open until mid-February 2020.
