Dear Editor,
In a SN letter of Oct. 4, Mr. Oditt, a former Chairman of GuySuCo opined that recent letters and statements in the press had inferred a doomed fate for the Corporation and therefore he felt obliged to participate in a Moray House Trust Seminar on the sugar industry to present participants with several of his view points which if implemented could enable it to return to profitability.
In 1993 Mr. Oditt a little known businessman but politically well connected was appointed as Chairman of GuySuCo by the then newly elected PPP/C Govt. A supportive Board and senior management staff politically loyal were appointed to his team. Ten years later in 2003 he was relieved of his duties as his poor performance and lack of management capability to manage Guyana’s largest Corporation caused GuySuCo to incur large annual losses during his tenure thus failing the mandate of his appointment which was to return the corporation to profitability.
In his missive Mr. Oditt concluded that GuySuCo must be run as a business and free from political interference if it is to return to viability through increased production and productivity. He however seemed oblivious to the old adage, “he who pays the Piper calls the tunes” and therefore the Government as owner had the obligation for oversight of the industry. Whether it had the right people and adequately devised strategic plans in place to make GuySuCo viable is another matter as ultimately it was responsible to its constituents for performance of the Corporation. Privately owned businesses run into trouble too if they are not managed well.
Some of Mr. Oditt’s proposals such as co-generation of power from bagasse for the national grid and the development of value added products from sugar to increase GuySuCo’s revenue stream and hence its profitability should have been considered and implemented during his tenure. GuySuCo missed the opportunity for its economic growth and profitability years ago when investments should have been made to increase production and productivity, mechanise field operations, improve worker skills and provide adequate support for research and development to increase yields.
Brazil, the world’s largest sugar producer manufactured 38.4 million metric tons (MMT) of sugar last year and is expected to produce 36 MMT this year while it has the largest stockpile in 35 years which is depressing sugar prices. This will be so until existing stocks are drawn down and production decreases further and/or demand increases. 90 out of 300 of its sugar mills have closed since 2005 and one-fifth of those functioning have sought relief for unpaid bills and debt payment. 10% of Brazil’s sugar workers have lost their jobs in the past 2 years and there are more in line waiting to let go.
Given this scenario it is no small wonder that the English speaking Caribbean countries as well as Mauritius, formerly a large sugar producer in the Indian Ocean have given up on sugar cultivation. The Commission of Inquiry (CoI) Report on the viability of GuySuCo is expected on Oct 17.
It is hoped that the stark realities facing the industry will be honestly conveyed to its workers therein. After all, Yesu Persaud, former Chairman of DDL is reported to have said, “Sugar is what brought us all here”. Will its subsidies continue to flow to keep us here? I hope so.
Yours faithfully,
Charles Sohan
