The Guyana Sugar Corporation (GuySuCo) yesterday confirmed that sugar production for 2019 had fallen below 100,000 tonnes and it acknowledged that there had been “major” mechanical failures at the Albion and Uitvlugt factories.
The sugar union GAWU had warned several times last year about the likely low sugar output and had also cited mechanical failures at factories as a major issue. The last time sugar production fell below 100,000 tonnes was in 1926.
In a statement, GuySuCo said that reflecting on the year 2019, a total of 92,246 tonnes of sugar was declared to be sold in the local, regional and international markets.
“Albion, Blairmont and Uitvlugt Estates produced 46,651, 23,325 and 20,270 tonnes of sugar respectively. This represents an underachievement of 17,000 tonnes from the estimated Second Crop production objective. The shortfall has been the consequence of major mechanical failures in the Albion and Uitvlugt factories and from the latter half of October 2019, increasing industrial unrest in which Blairmont was most affected”, the statement said.
GuySuCo said that adverse weather from the last week of November also affected harvesting. The Second Crop production was closed on December 21st 2019 with 1981 hectares that could not be harvested and will be carried over to the First Crop of 2020. The shortfall, the sugar corporation said, represents in excess of 80,000 tonnes of cane from Albion, 60,000 tonnes of cane from Blairmont and 11,000 tonnes of cane from Uitvlugt that was not reaped.
“The Industry will continue to face challenges to achieving reliability in the factories if … capital investments continue to be delayed. However, on a more positive note, the productivity of cane fields continued to improve as reflected by cane yields that exceeded the crop estimate on all estates”, the statement said.
GuySuCo has been in a tussle with government holding company NICIL over access to bond money which had been raised for the sugar industry. The value of the bond is $30b.
In 2019, the release said that the Corporation, together with the Ministry of Foreign Affairs was successful in paving the way for the protection of white sugar produced in CARICOM by securing the commitment of trade council, COTED for the application of the Common External Tariff to all non-regional sugars.
The feasibility study for the Plantation White Sugar Project was completed and the project was found to be feasible. The Corporation says it has commenced preparations to embark on this new venture in 2020.
“The addition of Plantation White Sugar and ‘A’ grade molasses for the production of genuine Demerara Rum to the Corporation’s line of value added products will see an increase in revenues both regionally and internationally for the Corporation and all of Guyana”, GuySuCo asserted.
The Corporation anticipates the expansion of its operations this year, with planned improvements in the fields and factories, as well as the commencement of preparatory works for the installation of a Cogeneration plant at Albion Estate. This is expected to support the supply of power to the East Berbice region.
Since it entered office in May 2015, the APNU+AFC government has presided over the closure of four sugar estates: Wales, Rose Hall, East Demerara and Skeldon. Over 7,000 jobs have been lost.
