GuySuCo declares production shortfall

GuySuCo has announced that it will not make its production target by some margin this year, but remains adamant that enough cane is in the ground to make the numbers.
GuySuCo, in a press release yesterday, said that industry-wide production figures are hovering around the 210,000 tonnes mark and with two weeks remaining for the closure of the crop and the threat of intense wet weather. The corporation had revised its target twice this year, lowering it to 264,000 tonnes from 280,000 and later aiming for 230,000 tonnes.  Production for the second crop was 126,128 for the week ending December 4.

The corporation reiterated that worker turnout has been poor this year; it was 52 percent as of last week. GuySuCo said that if turnout had averaged 75 percent, production would have been over 175,000 tonnes with very little or no carry over canes into the 1st crop of 2011. “This would have ensured the industry surpassed its revised target placing it in a more secure financial position and easily pay a wage increase,” the corporation added.

GuySuCo said its budgeted production is set to improve significantly in 2011, noting that an improved cash flow would translate into better rewards for the workers—with offers of decent wages and salaries increase. The Corporation stressed that the workers are a major player in the industry and must be fairly compensated, provided it has the ability to pay.

The corporation also responded to recent comments GAWU President Komal Chand made in relation to Skeldon factory, saying that the budgeted production at Skeldon was approximately 17% of the total industry wide revised target of 264,000 tonnes. The corporation said that it had no reason to “hide the facts” about the troubled factory when it recently announced that Skeldon performed better in 2010 as compared to last year.

It continued that the cumulative production figures of both the old and new Skeldon factories which were both in operation in 2009 were tallied to 25,715 tonnes, as against the production figures of the new factory this year. “It is clear that Mr. Chand’s negative comments on progress achieved at the Skeldon factory missed the fact that the Corporation stated that “while this was well below its original production figures the year to date production at Skeldon was 30,522 tonnes for 2010,” the statement said.

GuySuCo reiterated that the defects at Skeldon are to be remedied next year, adding that an agreement had been reached with the contractor of the factory, CNTIC where all the remaining defects will be corrected by January 2011, with the exception of the number (1) boiler which is scheduled for completion by June 30th next year.

Further, the corporation expressed concern over statements from the union that the “struggle would continue in the new year.” According to the corporation, such a disclosure to affect sugar production at a time when it could make up for the losses incurred since the 2005 floods, “flies in the face of constant denials by GAWU that its actions have not contributed in affecting the viability of the industry over the past few years.”

The Corporation said too that it is left to ponder the rationale for GAWU contemplating such action to hamper production in 2011.