Dear Editor,
The previous CEO of GuySuCo has shared his views on the recent past and his opinion on what is important going forward. The President has also done the same. According to these two gentlemen it can be summarized that weather has been a major issue, recapitalization continues to be important and cost containment remains a top priority (only a minor percentage of what was needed has been provided for what is considered “vital”). In the company’s last annual report (2022), the Report of the Directors states, “The principal activity of the Corporation is the growing of sugar cane and the manufacture and sale of sugar and molasses from that cane”. This is where CRG differs in perspective. To be successful in the sugar industry you must be able to capitalize on economies of scale. Hence the extensive discussions on the size of the crop. CRG recommends shifting the vision and strategy of the company to support the following:
The principal activities of the Corporation are the growing of sugar cane and the manufacture and sale of value added sugar based products, molasses and sugar from the cane. The addition of value added and the reordering of the principal activities in this statement may seem minor to some, but it shifts the fundamental purpose of GuySuCo to one of improved margin exposure. This fundamental shift will have a significant impact on the overall strategy of the Corporation. It impacts capital investment, the human resource development required and the overall future organizational capabilities necessary for GuySuCo to be successful. This will easily take the Corporation out of the cost cutting game and set it firmly in profitable markets. Therefore Editor, I submit to you that the President’s and former CEO perspectives require adjusting if we are to gain the success desired for the sugar industry.
In addition, the government needs to provide the funds and the credit to the Corporation that gives it the flexibility to make the necessary changes over the next 3 to 5 years. This must be supported by a clear vision of where the company will focus its efforts over that investment period. Thus, a new strategy for GuySuco will also be needed.
Sincerely,
Jamil Changlee
Chairman
The Cooperative Republicans of
Guyana
