Following reports in this newspaper regarding GuySuCo’s continued dismal performance and its projected below-target production this year, President Irfaan Ali has asked Minister of Agriculture, Zulfikar Mustapha, to provide a report on the industry.
“I was with the President a few days ago and he said to the Minister of Agriculture, directed him to meet with all the parties; the union, the management, and a number of other people who have an interest or knowledge of sugar, and to get a report back to him,” Vice President Bharrat Jagdeo yesterday told a press conference.
He said that he prefers to wait on that report but has received preliminary word about the reasons for the low performance.
“Their argument has been that they have expanded the cultivation… to get more canes from the field and that they will increase back their target. From what I heard they will make between 60,000 to 70,000 tonnes this year. Clearly that is below their target. The Minister of Agriculture has to explain to the President why they are underperforming. He has to give credible explanation,” he said
“So he has asked that. I don’t want to be premature before that report comes back to the President. They said the variety of cane they are bringing in now will “have higher yields”. Some is coming from Brazil we are looking at Cuba because all of the old ratoons are not yielding,” he added.
Jagdeo said that specialist consultants from India have told government that simple changes in the variety can see yields double.
GuySuCo’s reasons for low performance were also, according to Jagdeo, attributed to the quality of the corporation’s “factories themselves.”
“A lot because of deferred maintenance and lack of capital input. Fourth is management issues and these are some of the things that will be discussed,” he said.
Stabroek News last week reported that even with a $15 billion subvention for 2023, GuySuCo recorded a $4.7 billion 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 $4.7 billion loss… but we had collected a $15 billion 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 31, 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 10, 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 Execu-tive Officer, Paul Cheong, have gone unanswered.
The Minister of Agriculture was scheduled to meet with GuySuCo representatives last week, which he said was a “normal periodic one” where they would update on the corporation. However, he had explained that the meeting had to be shifted as he was unwell.
Late last month, 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, for the provision of a wide range of services at the Blairmont and Utvlugt estates.
