-despite billions in subventions
Even with a $15b subvention for 2023, GuySuCo recorded a $4.7b loss, according to the corporation’s preliminary audit report and the forecast is that the trend will continue as projections show that the 2024 production figure will be the worst in the corporation’s history.
“The 2023 Annual Report was presented to the Office of the Auditor General and shows a $4.7b loss… but we had collected a $15b contribution from government,” a source said pointing to the annual report.
In August this year, this newspaper had reported that even as the corporation’s audit for last year was still to be completed, GuySuCo recorded back-to-back losses of $7.8 billion and $10.2 billion in 2021 and 2022 respectively with this year recording the lowest first crop in its history.
The extent of the losses in the wake of large state subsidies to the industry will raise further questions about the government’s strategy. In its 2020 manifesto it had vowed to reopen three estates that were shuttered by the APNU+AFC administration. It has since reopened one, Rose Hall.
And while at October 31st, 2024 the production figures showed that 32,224 metric tonnes of sugar had cumulatively been produced, projected crop ending figures for 2024 place the total at a little over 45,000 metric tonnes, according to industry insiders.
Albion was recorded as producing 10,665 metric tonnes while Blairmont’s figure was pegged at 8,272 metric tonnes. Uitvlugt produced 8209 metric tonnes while Rose Hall did the least with 5079 metric tonnes.
“The crop ends on December 10th, based on current weather estimates… it means there is only a short window to produce and clearly the 2024 target won’t be met,” a source said.
The consequences of low sugar production and continued losses mean that the government will have to continue to pumping taxpayers’ dollars to sustain the industry.
Calls and messages from Stabroek News to current GuySuCo Chief Executive Officer Paul Cheong have gone unanswered.
Minister of Agriculture Zulfikar Mustapha was last week scheduled to meet with GuySuCo representatives which he said was a “normal periodic one” where they would update on the corporation. However, he explained that the meeting had to be shifted as he was unwell.
Only last week the main sugar union – the Guyana Agricultural and General Workers Union (GAWU) – expressed deep concern over poor production at GuySuCo and launched a stinging attack on the management of the corporation.
Their statement came just days after Stabroek News had reported on dismal sugar production figures despite billions of dollars being poured into the industry, the purchase of machinery and the hiring of experts.
GAWU’s statement will be seen as a stern rebuke of the Irfaan Ali government’s handling of the sugar industry.
GuySuCo last week published advertisements seeing the provision of a wide range of services at the Blairmont and Utvlugt estates.
