In the wake of debilitating flooding, the Guyana Sugar Corporation (GuySuCo) has slashed its projected annual output and the entire Albion estate cultivation remains inundated.
GuySuco is, however, assuring that despite setbacks caused by the flooding, the sugar supply for the local market remains secure.
“The sugar supply is secure for Guyana. There is no shortage of sugar in Guyana. GuySuCo is delivering 5,000 bags of sugar and 2,000 bales of packet sugar every week to the market and we will continue to do that. We have enough sugar to take us to the end of July and since production has started a new stock of sugar is being generated. We have enough sugar for the local market,” GuySuCo’s Chief Executive Officer (CEO) Sasenarine Singh has assured.
He explained that this supply is constant despite the fact that the industry fell well short of its first-crop target, which had been first set at 42,609 metric tonnes (MT) and then revised.
“The actual crop was 26,650 MT. We fell short and were 12,000 MT below the revised target simply because of the rain which has been constant since March 21,” Singh said.
He lamented that it still hasn’t stopped raining and that the Albion Estate, which is responsible for 49.9% of sugar production, remains inundated even as the corporation clears 4.5 million tonnes of water daily.
“It hasn’t stopped raining so we are curtailed in the harvesting at all estates while at Albion 100% of the fields are still under water. 49.9% of production is decommissioned and delayed by at least six weeks [so] we’re now expecting annual production at 79,000 metric tonnes from an amended target of 94,000 tonnes,” he shared.
The original 2021 production target announced in February was 97,420 MT, while total production in 2020 was 88,868 MT.
Asked to explain the financial impact these developments are likely to have on the sector holistically, Singh said so far increased revenue has cushioned the industry but if nothing changes the second half of 2021 is likely to be a lot more challenging.
He shared that the recently changed sales mix has resulted in more sugar being sold in packets at a higher price so GuySuCo has surpassed the budgeted first crop revenue by $734 million.
“At this point last year losses was $4.6 billion right now it’s $825 million. GuySuCo is in a stronger position with fewer losses,” the CEO pronounced.
Currently the Blairmont estate, which began grinding on July 14, is ready to produce as is Uitvlugt, which is scheduled to begin grinding in two weeks.
At Albion, the factory is ready but the crop is unavailable. Additionally because of heavy flooding, cane transport routes are now significantly damaged. Dams, canals and other infrastructure have been affected to a still unknown degree. Complete damage assessments await the removal of water from the land.
