The increase in the cost of fuel and fertilizers has affected Caribbean sugar producers and the Sugar Association of the Caribbean (SAC) says that in an effort to control this, its board has initiated a collective approach to the procurement of these inputs.
The price of equipment and freight is also a concern and the SAC says its Finance Committee has been mandated to investigate all these increased costs and to make recommendations to address them.
In a release following the 148th Meeting of its Board of Directors in Belize on November 15 and 16, SAC said development plans taking place in the respective sugar cane industries to mitigate the severe impact of the price cuts of sugar supplied to the European Union were also discussed. The price cuts began in July 2006.
Meanwhile, SAC noted that the EU has approved funding for two research projects in the region aimed at strengthening technical capacity in the production of improved cane varieties and enhance sugar quality.
It also expressed “total disagreement” with the EU’s decision to denounce the Sugar Protocol (SP) in the middle of negotiating an Economic Partnership Agreement (EPA) with the region.
SAC said that given the fact that the SP existed for 32 years to the mutual benefit of the African Caribbean Pacific (ACP) sugar suppliers and EU refiners, the EU’s decision was considered to be “untimely and in bad taste”.
SAC also noted that the board was advised that some member states had received or were close to receiving the 2006 allocation of accompanying measures meant to mitigate the effects of the price cuts.
SAC noted the slow pace of disbursement being a cause for concern and called on the EU to significantly improve the disbursement timing of the 2007/2008 funding so that necessary adjustments in the industry could proceed apace.
The release noted that while sugar production in the region for 2007/2008 is projected at some 621,000 tonnes, sugar production in all member countries were negatively affected in 2007 by unusual weather patterns.
In Guyana, apart from the production of sugar at the Guyana Sugar Corporation (Guysuco) Skeldon factory, it is also expected that it would supply 10 megawatts of power to the national grid. GUYSUCO also plans to construct a new packaging plant for value-added sugar at its Enmore Estate. This is due for commissioning in 2009.
The release said Belize has broken new ground in cogeneration supplying 13.5 megawatts of power to the national grid. Belcogen, a subsidiary of Belize Sugar Industry (BSI), has been incorporated and will manage the new facility.
In Barbados, the Barbados Agricultural Marketing Company has developed plans for a new sugar factory complex concentrating on value-added sugar, co-generation, molasses and ethanol. The Barbados Cane Industry Corporation was established to implement these plans.
In Jamaica, it is expected that the privatization of the five government-owned factories, for which there has been several expressions of interest from regional and international entities, would be concluded by the middle of next year. The new owners are expected to produce bulk sugar.
In Trinidad and Tobago, it is expected that the Sugar Manufacturing Company Limited (SMCL) would facilitate private farmers taking over the factory for the continued production of sugar and bagasse for paper production. A final agreement on this issue is expected soon.
In terms of Caricom’s requirements for brown and refined sugar, SAC said the expansion plans for the various industries cater for meeting the region’s needs. This includes SMCL’s continued production of refined sugar and the intended development of other refineries by other member countries.
