The Guyana Sugar Corporation yesterday signed a US$12M ($2.4B) contract with an Indian firm to upgrade the Enmore factory for packaged sugar within the next year in an effort to reduce the dependence on bulk sugar exports.
The Enmore factory is being considered for additional expansion to facilitate all of the sugar production in East Demerara, merging all the operations in that area into one.
Errol Hanoman
Chief Executive of GuySuCo Errol Hanoman disclosed during the signing with Surendra Engineering that one of the essentials of the new project is to convert the entire production of East Demerara into direct consumption sugar for the local and international markets.
He referred to the project as being critical to GuySuCo’s turnaround plan, adding that that it is an important step in the company’s development.
The new project dubbed, ‘Project Gold’, is the first sugar project under the Guyana National Action Plan (GNAP). It will result in the conversion of the total sugar output of the Enmore factory, 40,000 tonnes, into high-quality branded direct consumption sugar for the retail trade. Currently, GuySuCo produces 8,000 tonnes of packaged sugar.
Agriculture Minister Robert Persaud placed the project within the context of the increasing threats facing the local industry saying that it is both timely and necessary. The minister said also that the EU is funding the project as part of the accompanying measures for the GNAP. He referred to it as a significant injection in the industry, which he classified as a new industry given that they are rebuilding it. Recently the head of the EU Delegation here disclosed that Guyana had lost 6 million Euros in support for the industry as the government had been tardy in delivering a plan.
Persaud yesterday pointed to the European Union price cuts and the end of the European Union sugar protocol, stressing the need for diversification.
He said the project forms part of the strategic (diversifying) vision of the industry by placing emphasis on value adding, and by developing a sugar cane cluster. Persaud also cited the need to reduce the dependence on bulk sugar exports.
According to Persaud, the focus is now on income and revenue for the industry. He said the new Enmore factory when upgraded can produce as much as 80,000 tonnes at full capacity in the future provided all the various ingredients are there including an adequate supply of sugarcane.
As part of the plans to consolidate the East Demerara sugar estates, he said, a critical eye would be kept on sugar cane cultivation, noting that a sufficient supply is simply not there right now.
Further, he pointed to job creation to flow from the new project while declaring that this new project represents “full confidence in the future of sugar”. He said too that critics of the industry have pointed to gloom in the industry when “there is a viable turnaround plan in place”.
Persaud said also that Surendra Engineering, is reputable but more importantly, it has promised to complete the project in time for its September 2010 opening. He said penalties are attached to the contract in the event of a delay in the startup. The government experienced enormous delays with the Chinese contractor for the new Skeldon factory.
Chairman of GuySuCo’s board Dr Nanda Gopaul spoke briefly during the signing. He said GuySuCo would be able to benefit from better pricing and that the project also has enormous potential at Enmore, adding that they can later move to co-generation.
Gopaul stated further that the project aims at increasing efficiency in the industry while focusing on greater returns for local sugar.
Is sugar a viable export in these times?
I think it was mentioned that 40,000 tons was for ‘direct consumption sugar for the retail trade.’ Whatever that means! I take it as domestic retail????
how come no progress or attempt has been made by this government to retool one of these sugar estates to do ethanol production?
Rawberts you and jagdeo spendin too much time figuring out what hotel business men you want to partner up wid next.
Get out of the hotel bidness, its dead in GY.
Excellent story. Keep up development and progress for all our people Guyana and God bless you.
aye redddy how old are you 200?
time to retire padna you and your ideas are like the PPP soon to be past tense.
Red rover how about saying thanks to the EU who gave us the money? the same EU who your govt was cussing out a few days ago for their inept failure to prepare a business plan and submit it to get additional funds?
Shameless red rover shameless.
PPP cant even write a business plan? but they gat time to have misir and you write in dis newspaper? you see the irony red rover?
YES it could if it is handled with the biznis acumen required to understand the demand ,, and to meet the demands ,, with a view to making the sugar industry in GUYANA viable ! as with all commodities ,, sugar prices will see-saw ,, until it levels out and bcome a profitable product for nations that produce such !
one of the bottlenecks in the current industry in GUYANA ,, is no one seem to understand that the cane is the beginning of the industry ,, and “packaging”after it has bcome crystals from the cane ,,,,, all that has to happen from the planting of the cane to the packing of the crystals ,, must be a series of cogs working one for the other to bring to marketanother form of GUYANA GOLD ! preparation of land ,, and the method of bringing the cane from harvest to crystals is what will dictate the viabilty of this ,, that has been the cause of the racial divide in GUYANA for…. it should stop already !
SUGAR will always be in demand ,, those who must have it ,, is dictating the prices ,, since there is substitutes ,, readily available ,, this is where vision and bizniz savy is mandatory for the survival of this that so many in GUYANA depend on for so long ,,,,,,,,
with the abundance of water the fool goes thirsty ,, is it a lack of vision or just plain stupidity that with all of our natural resources none who has been at the top to make real progress ,, for the PEOPLES benefit ,, has done so ,, except for themself ! i think of how much can be achieved ,, in 7 years b4
the “GOLDEN ARROW HEAD” is 50 ,,, and with the abundance of all that we is so richly blessed ,, for 43 years ,,, many in GUYANA is not only thirsty ,, but ,, hungry ,, homeless ,, and everything else that goes with the latter !
writing contracts for foreign investors to extract our resources so that ALL benefit must be futuristic and environmentally ,,
responsible to protect our very fragile ecosystem !…
packages sugar would guarantee a fantastic return, instead of selling it in bulk for next to nothing…
Fazal Gafoor
good point GTRL, in addition they should look at the organic sugar market which is very lucrative as well.
“Persaud yesterday pointed to the European Union price cuts and the end of the European Union sugar protocol, stressing the need for diversification.”
This man thinks we are flaming idiots if he expects us to believe that value adding and creating a sugar cane cluster are examples of diversification. This is continuing down the same path but camouflaged as change. Real diversification would negatively affect the G.A.W.U., an important support base of the P.P.P. and is tantamount to political suicide. Don’t believe the hype.
A flurry of activity to be completed by September 2010 with elections in 2011. A nice plum to be added to the party prospectus as an accomplishment.
Don’t know to laugh or cry Borapork. My understanding was EU funded this project. Cane clusters was a strategy not part of diversification. There is talk of possible expansion and cogeneration in future. Elections or not. Let hope for the best- Bro
With the world price of sugar lower than Guyana production cost, and brazil producing millions more tonnage at lower cost, Guyana still continues to throw money at this white elephant.
I am quite suprised(I should not be!!!)that a Indian Company given the job to upgrade Enmore sugar factory…not to forget about the Chinese at Skeldon…I am not saying that these two nation of people’s are not resourceful.
Projects like these need expertises, who have a lots of experience, it will cost more but in the long term of your operation it’s more viable.
I am so sorry for the people of Guyana, I don’t know where they are heading under this adminstration…come PPP do do some sensible thinking, you was burnt once by the Chinese.
As the proverb goes “once bitten twice shy”
alimajue, what a stupid comment. indians have a lot of experience and expertise in planting cane. the chinese i am not so sure about.
Anybody could plant cane …we dealing with setting up a plant to package sugar.
Wonder if you know about the sugar industry in Guyana.
Ali, you are probably not aware but india has a significant sugar industry.
check out http://www.sugarindustry.com/
This is some additional data a bit dated but it will give you some perspective.
As to the statistics there were a total number of 571 sugar factories in India as on March 31,2005 compared to 138 during1950-51. These 571 sugar mills produce a total quantity of 19.2 million tones (MT). Sugar production in India increased from 15.5 MT in 1998-99 to 20.1 MT in 2002-03.
Is there a valid reason why Guysuco’s financial statements e.g. annual reports, interim financial statements are NOT posted on its website to provide its shareholders (the citizens of Guyana) with credible information regarding Guysuco’s financial health and viability?
The new Chief Executive is an Accountant. As such, he should need no further prompting in this regard. Thanking him in advance.
because if they posted them there like any other healthy corporation would we would be able to see how poor they are performing year over year.
As Ramoutar said there is no corruption folks Guysucko is being audited by top firms no need to worry.
Apparently Mr. Freedumb haven’t heard of Enron or AIG or GM apparently.
This PPP government held so much promise for Guyanese as an East Indian led government I am ashamed of their performance. They are making the PHENc look like their years in govt were fantastic compared to these donuts.
They have turned around and embraced all the tools of the previous dictatorship. Well what can you expect from communists?