Dear Editor,
The recent brouhaha over GuySuCo was missing focus on solutions. There are two key objectives for GuySuCo: (1) Becoming profitable and (2) Preventing layoffs. These two objectives are not at odds with each other and can be accomplished. To become profitable the company needs to shift its focus to:
1a) Producing beverage alcohol – DDL and Banks DIH could have been strengths of GuySuCo in the past, and now is the time to develop the beverage alcohol portfolio of the company. Supplying the main ingredient necessary for world class quality beverage alcohol, and marketing & selling its products within the region and around the world should be the main strategic focus of GuySuCo going forward. A partnership with DDL and Banks DIH would be mutually beneficial and the resulting profitability will ensure that GuySuCo prospers over the long term. This will also help Guyana develop its beverage alcohol portfolio in this very profitable global market.
1b) Adjacent products – The Covid pandemic and the Government’s thrust into healthcare offers additional opportunities for the use of GuySuCo as a source of profitable products that will leverage the new capabilities developed in 1a) 1c) White Sugar – There is an increase in profitability that comes with moving into this more refined product, and an agreement has already been made to supply the region. Executing this strategic initiative needs to be achieved to add to the profitability of the company. Overall, achieving profitability will require investment in R&D and new capabilities, and a partnership with the leading companies in the beverage alcohol space. Given the previous experience of GuySuCo in this pursuit the company should be able to quickly transition.
2a) Developing the workforce – With a transition towards a new strategic focus, many employees can be up skilled to support the new focus of the company. The strategic shift will also give the company the flexibility to mechanize, expand acreage and maintain the current employee base. 2b) Partnering with Industry Leaders – Brazil continues to be the most efficient in the sugar industry. GuySuCo must partner with the leaders in the Brazil sugar industry to embrace their best practices to increase productivity and yield.
CRG recommends that the Board of GuySuCo meet and discuss this proposal so as to chart a clear vision of the future of the company. Once agreed upon, they must act quickly towards the development and execution of their strategy to achieve their new vision. CRG has made these initial suggestions to answer the “Where to Play?” and “How to Win?” questions that are necessary to quickly turnaround the company. Moving in this direction will help GuySuCo achieve future success.
Sincerely,
Jamil Changlee
Chairman
