However, last year’s projection was for 290,000 tonnes of sugar to be produced but actual production fell far short at 233,736 tonnes.
Presenting the 2010 Budget to the National Assembly yesterday, Finance Minister Dr Ashni Singh said that this year’s target reflects the implementation of the turnaround plan, including from increased acreage under cultivation, return to mechanisation and improvement in the conversion of sugar from cane.
He had earlier noted that the sugar sector achieved higher production and export volumes last year compared to 2008. Singh noted however, that the industry continued to be plagued by the challenges of erratic weather, pest infestation, and damage, depleted and aged capital, managerial shortcomings and strike action that resulted in 130,171 man hours being lost last year.
The finance minister stated that this year, the implementation of the Guyana Sugar Corporation (GuySuCo) turnaround plan is expected to result in further significant improvements in land preparation and land use, rationalisation of factories, acceleration of mechanisation, improvement of cane yields, more timely execution of the capital investment programme and increased production. He said GuySuCo is projected to invest $5.8 billion this year for the replacement of field and factory assets and land development. He noted that testing of the Skeldon factory is ongoing and expected to be concluded shortly. $4.1B is projected to be spent this year towards the completion of all aspects of the Skeldon project, including the agriculture operations, the factory and the co-generation plant.
According to the minister, the factory will benefit from expected increases in cane production and resolution of the operational issues that affected output last year. He also noted that construction of the Enmore packaging plant is expected to be completed by the end of the year. “The implementation of this plan, moreso, if complemented by responsible and supportive actions by stakeholders is expected to see us overcome the challenges currently being confronted and emerge with a sugar industry that is efficient and competitive, and equipped to convert opportunities that are emerging from developments in the global and regional marketplace to our national advantage,” he stated.
Lower rice production forecast
Meanwhile, the ongoing dry weather phenomenon, El Nino, has been blamed for the lower rice production expected this year. Following last year’s bumper production, this year’s yield is expected to contract 4.6% to 343,373 tonnes. El Nino has adversely affected sowing of paddy, which translates to lower acreage under cultivation and hence lower production, Singh explained.
He said that last year the sector recorded its second highest yields ever and this trend is expected to continue this year. Government will spend $40 million this to construct a new seed facility at Number 56 Village, while a new seed dryer will be purchased for the Burma research station at a cost of $16 million.
Twelve additional drying facilities will be constructed in Regions Two, three, Four, Five and Six, the minister stated.
‘Other Agriculture’ is expected to grow 2.1%, as the agricultural diversification programme and the ‘Grow More Campaign’ “continue to reap rewards.” As regards agricultural diversification, Singh said “significant opportunities” are there, particularly as in relation to agriculture and food supply for the domestic and export markets. He stated that to this end, focus will be aimed at increasing output volumes, diversifying the product base, improving quality and consistency, and providing market facilitation and marketing support. “These objectives will be pursued by working closely with small and medium size operators in the sector as well as promoting investment and growth by larger operators in high-end agriculture and aquaculture,” he stated.
This year, $1.3 billion has been allocated to continue the expansion and development of the non-traditional sub-sectors in the areas of agribusiness planning, extension services, technology transfers and institutional strengthening. Of the sum, $736 million will be spent under the Agriculture Export Diversi-fication Programme on the rehabilitation of the seed facility and the furnishing of the germplasm laboratory at the National Agricultural Research Institute and commencing the construction of a genetic bank at the National Diary Development Programme.
Also included in the 2010 allocation is $350 million to be spent under the Rural Enterprise and Agricultural Development Programme to develop a market and enterprise information system to conduct a market identification and competitiveness assessment, along with other activities such as training and capacity building for over 2000 farmers, Singh said.
Additionally, the livestock industry is expected to grow 2.9% while the forestry sector is projected to grow by 5%. This, the minister explained, is because the demand for wood products is expected to increase as the world economy recovers and as increased production of sawn lumber and policies to facilitate greater export of higher value added wood products take effect.
The fishing industry is projected to expand marginally by 0.5%, with some restoration of demand as the tourism-dependent centres of the Caribbean recover.
