Regional sugar producers have made an urgent appeal for policy changes to protect their markets in CARICOM in order to boost production.
The appeal on November 11 was made by Chairman of the Sugar Association of the Caribbean (SAC) R. Karl James in a press release and came in the backdrop of the fact that more than two-thirds of sugar consumed in CARICOM comes from duty-free extra-regional sources. This displaces market opportunity for CARICOM sugar which is then forced onto the low value global market.
James noted that the production levels for SAC members: Jamaica, Barbados, Guyana, and Belize, have fallen short of those in previous years. He noted that if CARICOM governments took the necessary steps to protect local producers from extra-regional imports, then production would improve in 2022.
For the 2020-21 regional sugar crop, the release said that the total output from the four SAC members was 198,232 tonnes, with exports to the United Kingdom, United States and CARICOM at 109,084 tonnes.
“This was a far cry from what we have become accustomed to doing in the region as in recent times we have consistently produced over 300,000 tonnes and exported well over 200,000 tonnes to the UK, US and CARICOM”, James was quoted as saying.
James says he is hopeful that with the new decision to apply the Common External Tariff (CET) to extra-regional imports of sugar, there will be commensurate protection of local producers, particularly in Belize, which although the largest producer of sugar in the 2020-21 season, only consumed 13,000 tonnes.
“We are asking for a policy which will not only support the protection of the sugar market in Belize for local consumption but also to boost the export market and this would be a win-win for Government, investors and workers in the sector”, James said.
He added that “Policy changes to secure the integration of the sugar market within the CARICOM Single Market & Economy (CSME), are critical as a failure to achieve this threatens a major agricultural sector of the region’s economy, as well as thousands of Caribbean jobs.”
The SAC Board said in the coming months it will be seeking further discussion between sugar producers and users to find a pathway to achieve a mutually beneficial outcome, especially as the new CET application now in force.
“A part of the solution must be the correct implementation of the existing Treaty (Revised Treaty of Chaguaramas) processes, in particular for brown sugar, which has seen a marked erosion of value for our members. We continue to dialogue with our respective governments, sugar users and the CARICOM Secretariat to find solutions,” said James.
In giving his annual assessment of the performance of SAC members, James lamented that the crop in Guyana was severely affected by harsh weather which led to that country’s lowest production levels in recent years.
“Guyana only had one crop for 2020-21 instead of the usual two, and we are optimistic that with better weather, the upcoming season will bring improved results and higher productivity”, said James.
The members of the SAC are the Barbados Agricultural Management Company, Belize Sugar Industries Limited; Guyana Sugar Corporation Inc., and The Sugar Manufacturing Corporation of Jamaica Ltd.
