The sugar industry is facing declining production numbers this year despite projections outlined in its much vaunted turnaround plan and reports are that its modern, flagship Skeldon factory is underperforming, and is still plagued by a string of problems.
The revised estimate for the first crop has been set at 86,508 tonnes, which is 41,976 tonnes less than what GuySuCo had strategized, and there are questions as to whether even the revised target can be met given the reported problems at Skeldon. For the corresponding period last year, the corporation had reported a 6,000 tonne shortfall and recorded just over 83,000 tonnes.
According to corporation sources, there are issues with adequate cane supply with Skeldon and other reported problems with the Chinese-built factory itself. Reports from inside the industry indicated that during the current crop an additional 69 defects were identified to be fixed by the contractor, four of which are considered critical. In addition, several critical spares are inhibiting grinding rates and recoveries.
The Skeldon factory has since been downgraded to grind at 200-250 tonnes cane per hour, from its designed 350 tonnes cane per hour, and as a result the shredder inlet had to be modified, among other things including changing the factory’s computer programming parameters. For the first crop the factory has struggled with production among other issues. Weather was also cited by the industry as a problem.
Reports from inside the industry indicated that as of late last month all estates, except Skeldon, had completed their crop, and the figure stood then at only 78,037 tonnes, a shortfall of 8471 tonnes from the now revised target. A breakdown, which this newspaper saw, pointed to the shortfall figures at the estates as follows, Rosehall (-3520 tonnes); Enmore (-3510 tonnes) and Albion (-1610 tonnes).
The Skeldon production for the first crop of 2010 up to April 24 this year was only 7821 tonnes, as compared with Albion 18,515 tonnes; LBI 8,507 tonnes and Wales 8,076 tonnes. The factory underperformed and produced less than the other estates, additionally cane supply to Skeldon remains a major problem. GuySuCo has struggled with the cane supply and projected an adequate supply in 2011, however the corporation pointed to a number of initiatives which are to be undertaken this year to boost the supply for the projected period.
GuySuCo had worked out a strategy to increase the yields on all estates, projecting 60.88 tonnes of cane per hectare [TCH] in the first crop of 2009, and 62.87 tonnes cane per hectare in the second half of 2009, and in the other years thereafter. However, this year the TCH for the first crop at the eight estates revealed that no estate achieved the turnaround strategy’s target of 62.68 TCH for 2010. In fact none achieved what was supposed to be the yield of 60.88 TCH set for the first crop of 2009, reports indicated.
This year’s TCH for the first crop on the estates was as follows Skeldon (54.53 TCH); Albion (55.96 TCH); Rosehall (47.90 TCH); Blairmont (59.52 TCH); Enmore (51.03 TCH); LBI (52.60 TCH); Wales (48.13 TCH) and Uitvlugt (51.51 TCH). For the first crop this year the farmers at Skeldon expanded more land than the estate and reports are that they ploughed 437 hectares from a budgeted amount of 490 hectares, whilst the estate only ploughed 331 hectares out of a budgeted amount of 781 hectares. Further, it was also reported that the wharf from which the Skeldon sugar is to be shipped is in extremely bad condition and is currently incapable of shipping 110,000 tonnes of sugar a year.
GuySuCo had projected a production of 290,000 tonnes of sugar last year, which was later revised to 250,000 tonnes then 242,000 tonnes. The corporation finished the second crop around 235,000 tonnes of sugar. This year the production target has been set at 280,000 tonnes. If the first crop is only around 80,000 tonnes, getting anywhere near this figure will be unlikely. Sources say the lower than projected output will continue to deepen the corporation’s financial crisis.
