Dear Editor,
In my econometrics class by Wall Street experts, I was told to hold one variable constant and to examine or change the other variables based on empirical evidence to predict the future or present-day expectations. As such Guyana (GuySuCo) can never produce raw sugar at 18 cents per pound now or never, Paul. I support no party, so I speak freely, blaming no one! I used the current budget request and what was spent the past 3 years, a ridiculous sum.
Every year, we throw good money for bad sugar outcomes. Why pay sugar workers’ wages when they can be paid for the D&I and privatize the sugar industry? Guyana’s needs today for sugar are perhaps two estates to satisfy the local market with sugar and molasses. The export market is dead, we are losing money. We will never be able to bring the price of production to 18 cents in the next 10 years. Our cost of production is too high, I did some computer modeling using (C++ and AI). We are wasting our money, but we have no say. Dreams of mechanization are wishful thinking. Many call themselves Economist, however Skeldon Estate was a debacle.
This is not sweet, it is sour. The amount of money it will take to resurrect the sugar industry will suck a sizable percentage of our country’s wealth over the next 10 years. We are producing sugar at over 40 cents a pound the rest of the world is selling for 18 cents – ask our neighbour Brazil.
Yes, I went to Wales and Uitvlugt Estates in 2021. It is a disaster; the rules of economics dictate we have no comparative advantage. It is a waste of our resources just to keep folks employed, it goes against the fundamentals of economics, privatize sugar. Governments are never good at owning production. Try selling GuySuCo, if you get no offers then that is your answer, you are in the wrong business. I sat next to Dr. Yesu Persaud on a flight to Miami a few years ago before his passing and he lamented sugar is dead in Guyana – we need alternatives!
Sincerely,
Everton D. Morris
